Consider the setup from Question 2. The government proposes an alternative, market-based solution. They charge each citizen the price p for every, firemen stationed at the local fire station. Then, the price is being set at a level p* at which each individual demands the socially optimal number of firemen. What is the price p*? Assuming that the cost of each fireman is equal to 1, would the government be able to finance the firemen using only the payments from the two citizens? O a. The price is p* = 1/2, which is enough to finance the socially optimal number of firemen. O b. The price must be p* = 0, which is not enough to finance the socially optimal number of firemen. O c. The price is p* 1, which is enough to finance the socially optimal number of firemen. O d. The price is p* = 1/2, which is not enough to finance the socially optimal number of firemen.

Which of the following is a fringe benefit excluded from income? a.Quickchat Inc. gives each employee a $10 gift card to the local coffee shop on National Coffee Day. b.A mechanic at Denise's employer, a car rental company, provides $1,000 of repair services to Denise's personal car for free. c.Hedaya, a doctoral student at Ivy University, receives a full tuition waiver while serving as research assistant. d.Alfa-Bet, a high-tech corporation, pays for each employee's membership at the 24 Hour Biceps Gym closest to each Alfa-Bet office.

Which of the following will result in the recognition of gross income? Gail's employer allows her to set aside $ 4,000 from her wages to cover the cost of daycare for Gail's four-year-old daughter. Gail's daycare costs are $ 4,300 for the year. Hannah purchases a new sofa from her employer, Sofas-R-Us, for $ 1,200. The cost of the sofa to the furniture store is $ 1,100 and the sofa normally sells for $ 1,700. Jayden's employer purchases her commuting pass for the subway at a cost of $ 225 per month. Havana is a lawyer. The law firm she works for pays for her subscription to Lawyer's Weekly, a trade magazine for attorneys. None of the above will result in recognition of gross income.

Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Lacey Tanner have balances of $30,000 and $39,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings. Jenkins and Tanner deem these skills useful; thus, Solano is admitted to the partnership at a 30% interest for a purchase price of $19,000. a. Determine the recipient and amount of the partner bonus. b. Provide the journal entry to admit Solano into the partnership. If an amount box does not require an entry, leave it blank. c. Why would a bonus be paid in this situation? Apparently, Jenkins and Tanner value offered by Solano.

Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM87501. Lance works for the convention bureau of the local Chamber of Commerce, andWanda is employed part-time as a paralegal for a law firm.During 2018, the Deans had the following receipts:Salaries ($60,000 for Lance, $41,000 for Wanda) $101,000Interest income—City of Albuquerque general purpose bonds $1,000Ford Motor company bonds 1,100Ally Bank certificate of deposit 400 2,500Child support payments from John Allen 7,200Annual gifts from parents 26,000Settlement from Roadrunner Touring Company 90,000Lottery winnings 600Federal income tax refund (for tax year 2017) 400Wanda was previously married to John Allen. When they divorced several yearsago, Wanda was awarded custody of their two children, Penny and Kyle. (Note:Wanda has never issued a Form 8332 waiver.) Under the divorce decree, John wasobligated to pay alimony and child support—the alimony payments were to terminateif Wanda remarried.In July, while…

Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Lacey Tanner have balances of $78,000 and $46,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings. Jenkins and Tanner deem these skills useful; thus, Solano is admitted to the partnership at a 30% interest for a purchase price of $32,000. Determine the recipient and amount of the partner bonus.  Provide the journal entry to admit Solano into the partnership. For a compound transaction, if an amount box does not require an entry, leave it blank.

Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Lacey Tanner have balances of $78,000 and $46,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings.Jenkins and Tanner deem these skills useful; thus, Solano is admitted to the partnership at a 30% interest for a purchase price of $32,000.a. Determine the recipient and amount of the partner bonus.b. Provide the journal entry to admit Solano into the partnership.c. Why would a bonus be paid in this situation?

Nancy Freeley has been operating an​ apartment-locator service as a sole proprietorship. She and Melissa Marcellus have decided to form a partnership. Freeley​'s contribution consists of​ Cash, $6,000​; Accounts​ Receivable, $12,000​; ​Furniture, $13,000​; Building​ (net), $53,000​; and Notes​ Payable, $17,000.   To determine Freeley​'s equity in the​ partnership, she and Marcellus hire an independent appraiser. The appraiser values all the assets and liabilities at their book​ value, except the​ building, which has a current market value of $100,000. ​Also, there are additional Accounts Payable of $3,000 that Freeley will contribute. Marcellus will contribute cash equal to Freeley​'s equity in the partnership.   Requirements 1. Journalize the entry on the partnership books to record Freeley​'s contribution. 2. Journalize the entry on the partnership books to record Marcellus​'s contribution.

Sally and Andy are partners in Just Hats, LLC.  Andy works in the business for an agreed salary draw of $4,000 per month.  Sally has invested $200,000 in the business and Andy invested $100,000.  THe net income of the business is $168,000 for the year.  Income is distributed based on the investment of each partner after allocation for salary.  How much net income is allocated to Sally?

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow:       Total   Home Nursing   Meals On Wheels   House-keeping Revenues $ 930,000 $ 267,000 $ 405,000 $ 258,000 Variable expenses   474,000   119,000   198,000   157,000 Contribution margin   456,000   148,000   207,000   101,000 Fixed expenses:                 Depreciation   69,100   8,300   40,600   20,200 Liability insurance   44,100   20,900   7,800   15,400 Program administrators’ salaries   114,600   40,200   38,400   36,000 General administrative overhead*   186,000   53,400   81,000   51,600 Total fixed expenses   413,800   122,800   167,800   123,200 Net operating income (loss) $ 42,200 $ 25,200 $ 39,200 $ (22,200)   *Allocated on the basis of…