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Question - Peter and Bob formed a partnership on January 1, 2003. Bill contributed capital of $100,000. Bob contributed capital of $20,000 and agree to manage the firm full time. There were no withdrawals during 2003. The partnership agreement specifies that income is to be distributed as follows: Bob is to receive a bonus of 10%; remaining profit or losses are to be shared in the ratio of 3:2 to Peter and Bob, respectively. The partnership 2003 net income was $100,000.
Refer to the above information. What is the amount of Bob's bonus if the bonus is to be calculated on income before deducting the salary and interest on capital accounts, but after the bonus? Why?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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