Question

In: Accounting

Roberto and Reagan are both 25-percent owner/managers for Bright Light Incorporated. Roberto runs the retail store...

Roberto and Reagan are both 25-percent owner/managers for Bright Light Incorporated. Roberto runs the retail store in Sacramento, California, and Reagan runs the retail store in San Francisco, California. Bright Light Incorporated generated a $126,400 profit companywide made up of a $75,400 profit from the Sacramento store, a ($26,000) loss from the San Francisco store, and a combined $77,000 profit from the remaining stores. If Bright Light Incorporated is an S corporation, how much income will be allocated to Roberto?

Solutions

Expert Solution

According to the given question, Since both Roberto and Reagan are 25% owners of the corporation, the profits will be divided according to the ownership or their profit sharing ratio irrespective of the stores run by them.

Total Profit= $75,400-$26,000+$77,000

= $ 1,26,400

Profit will be distributed as follows:

Roberto and Reagan= $1,26,400*25% =$ 31,600 each

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

1. A retail store runs an advertising campaign on a radio station. They decide to measure...
1. A retail store runs an advertising campaign on a radio station. They decide to measure the effectiveness of the campaign by measuring the increase in customers compared to previous days. They choose 35 days at random, and find the average number of customers to have increased by 83.3 customers per day. Historically, the number of customers per day has a standard deviation of 17.5 customers. What is the 95% confidence interval for the population mean increase in customers? Select...
11. Running On Carla Gomez is the owner of Running On—a retail store that sells shoes...
11. Running On Carla Gomez is the owner of Running On—a retail store that sells shoes and accessories to runners. Carla is trying to decide what she should do with her retail business and how committed she should be to her current target market. Carla started Running On retail store in 1994 when she was only 24 years old. At that time, she was a nationally ranked runner and felt that the growing interest in jogging offered real potential for...
You are the owner of a clothing retail store in Manhattan that sells brand name clothes,...
You are the owner of a clothing retail store in Manhattan that sells brand name clothes, including high-end clothing brands. Your retail salespersons are paid a mean hourly wage of $15. Over the last several months, your sales have significantly declined and customer satisfaction surveys indicate that your customers are increasingly dissatisfied with the quality of service. You just took a course in microeconomics for business decisions in which you learned about the concept of principal-agent problem. To what extent...
Jennifer is the owner of a video game and entertainment software retail store. She is currently...
Jennifer is the owner of a video game and entertainment software retail store. She is currently planning to retire in 30 years and wishes to withdraw $11,000/month for 20 years from her retirement account starting at that time. How much must she contribute each month for 30 years into a retirement account earning interest at the rate of 2%/year compounded monthly to meet her retirement goal? (Round your answer to the nearest cent.) $________
You are the owner of a clothing retail store in Manhattan that sells brand name clothes,...
You are the owner of a clothing retail store in Manhattan that sells brand name clothes, including high-end clothing brands. Your retail salespersons are paid a mean hourly wage of $15. Over the last several months, your sales have significantly declined and customer satisfaction surveys indicate that your customers are increasingly dissatisfied with the quality of service. You just took a course in microeconomics for business decisions in which you learned about the concept of principal-agent problem. To what extent...
You are the owner of a clothing retail store in Manhattan that sells brand name clothes,...
You are the owner of a clothing retail store in Manhattan that sells brand name clothes, including high-end clothing brands. Your retail salespersons are paid a mean hourly wage of $15. Over the last several months, your sales have significantly declined and customer satisfaction surveys indicate that your customers are increasingly dissatisfied with the quality of service. You just took a course in microeconomics for business decisions in which you learned about the concept of principal-agent problem. To what extent...
You are the owner of a clothing retail store in Manhattan that sells brand name clothes,...
You are the owner of a clothing retail store in Manhattan that sells brand name clothes, including high-end clothing brands. Your retail salespersons are paid a mean hourly wage of $12. Over the last several months, your sales have significantly declined and customer satisfaction surveys indicate that your customers are increasingly dissatisfied with the quality of service. You just took an online course in managerial economics in which you learned about the concepts of efficiency wage and principal-agent problem. To...
Marisa Williams runs a retail grocery store and purchases items for resale to her customers. She...
Marisa Williams runs a retail grocery store and purchases items for resale to her customers. She is facing an ordering decision about how much of a particular item to purchase at one time.. in order t take advantage of supplier discounts (if it makes sense to do so). Demand = 36,000 units per year order cost = $25 per order Carrying cost = $0.45 per unit purchasing price = $0.85 Discount price= $0.82 (if buy a minimun of 6,000 units...
Happy Harry Pets was incorporated on January 1st. The business maintains a retail pet store, providing...
Happy Harry Pets was incorporated on January 1st. The business maintains a retail pet store, providing gourmet dog food and treats, and also provides a full range of pet care services, including grooming, dog-walking, and boarding. The following transactions occurred during the first twelve months of operations: January 1st Common stock is issued in exchange for cash in the amount of ………….………….……………………… 295,000 February 8th The company purchases and pays for 160 units of gourmet dog food at a price...
Happy Harry Pets was incorporated on January 1st. The business maintains a retail pet store, providing...
Happy Harry Pets was incorporated on January 1st. The business maintains a retail pet store, providing gourmet dog food and treats, and also provides a full range of pet care services, including grooming, dog-walking, and boarding. The following transactions occurred during the first twelve months of operations: January 1st Common stock is issued in exchange for cash in the amount of ………….………….……………………… 295,000 February 8th The company purchases and pays for 160 units of gourmet dog food at a price...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT