Faye, Gary, and Heidi each have a one-third interest in the capital and profits of the FGH Partnership. Each partner had a capital account of $50,000 at the beginning of the tax year. The partnership profits for the tax year were $270,000. Changes in their capital accounts during the tax year were as follows: Faye Gary Heidi Total
Beginning balance $50,000 $50,000 $50,000 $150,000
Withdrawals (20,000) (35,000) (10,000) (65,000)
Additional contributions -0- -0- 5,000 5,000
Allocation of profits 90,000 90,000 90,000 270,000
Ending balance $120,000 $105,000 $135,000 $360,000
In arriving at the $270,000 of partnership profits, the partnership deducted $2,400 ($800 for each partner) in premiums paid for group term life insurance on the partners. Faye and Gary are 39 years old, and Heidi is 35 years old. Other employees are also eligible for group term life insurance equal to their annual salary. These premiums of $10,000 have been deducted in calculating the partnership profits of $270,000.
Each partner's gross income from the partnership for the tax year is $
Community Property (LO. 3)
Liz and Doug were divorced on December 31 of the current year after 10 years of marriage. Their current year's income received before the divorce was as follows:
Doug's salary $41,000
Liz's salary $55,000
Rent on apartments purchased by Liz 15 years ago $8,000
Dividends on stock Doug inherited from his mother 4 years ago $1,900
Interest on a savings account in Liz's name funded with her salary $2,400
Allocate the income to Liz and Doug assuming that they live in:
a. California.
Doug: $ Liz: $
b. Texas.
Doug: $ Liz: $

a. Each partner's gross income from the partnership for the tax year is $

$90,800

b. Community Property:

a. California.

Doug: $51,100  Liz: $57,200

b. Texas.

Doug: $54,150 Liz: $54,150

Explanation:

a) Data and Calculations:

Partnership profits =  $270,000

Add Insurance premium  2,400

Total profits shareable $272,400

Share of each partner = $90,800 ($272,400/3)

(Or Share of profit $90,000 + Premium $800 = $90,800)

b) Community Property:

Doug's salary $41,000

Liz's salary $55,000

Rent on apartments purchased by Liz 15 years ago $8,000

Dividends on stock Doug inherited from his mother 4 years ago $1,900

Interest on a savings account in Liz's name funded with her salary $2,400

Total community property = $108,300

Less Separate Property:

Less Liz's rent $8,000

Less Doug's dividends $1,900 9,900

Remaining community property = $98,400

This is shared equally ($98,400/2) = $49,200

a. California.

Doug: $51,100 ($49,200 + $1,900) Liz: $57,200 ($49,200 + $8,000)

b. Texas.

Doug: $54,150 Liz: $54,150 ($108,300/2)

c) Texas and California are two of the nine states that have community property jurisdiction.  The implication is that any property acquired by a couple during their marriage is equally owned by both spouses. In California, the spouse also owns a one-half interest in your regular income, provided it does not come from your separate property.  But in Texas, income from separate property is included in the community property and is equally shared, though the separate property itself remains separate and is not shareable.

answer; ///liability;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.