Jerry and Matt Decide to Form a Business

question 60

Multiple Choice

Jerry and Matt decide to form a business. Jerry will contribute $4,200 for a 35% interest and Matt will contribute $7,800 for a 65% interest. The business will take out a $25,000 loan to cover the balance of their working capital needs. They expect that the business will have a loss of $38,000 for the first year. In the second year, the business will have a profit of $52,000 and it will distribute $5,200 to Matt and $2,800 to Jerry. Jerry is in the 32% marginal tax bracket and Matt is in the 24% marginal tax bracket. Their marginal tax brackets will not change as a result of profit or loss from this business. What is Jerry's basis at the end of the second year if they organize the business as a partnership?

• A) $0
• B) $6,300
• C) $27,950
• D) $15,050
• E) $15,400

Recognize the importance of providing continuity for children during parental separation or divorce.

Identify factors that influence the variability in family structures and how they cope with stress.

Acknowledge the various paths to parenthood chosen by lesbian mothers and gay fathers.

Learn about the socioeconomic status (SES) impact on parenting expectations regarding children's conformity to society.

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Definitions:

Sociometer Theory

A theory linking level of self-esteem with level of belongingness.

Belongingness

An emotional need or desire for strong and stable relationships with different groups or communities.

Self-Esteem

An individual's overall subjective emotional evaluation of their own worth or value.

Self-Compassion

Being kind to yourself; treating yourself with the same sense of compassion that you would treat others.