In December of 2019, Ms

question 61

Essay

In December of 2019, Ms. Havisham and Pip form a wedding planning business. They each own 50 percent of the partnership. The partnership establishes a September 30th year-end since most weddings are during the summer. Therefore, the partnership's initial year-end is September 30, 2020. For the month of December 2019, the partnership made a net income of $3,000 after Ms. Havisham's guaranteed payment of $1,000. From January through September of 2020, the partnership made a net income of $65,000 after a $1,500 per month guaranteed payment to Ms. Havisham.
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a. How much income should Ms. Havisham report for 2019?
b. How much income should Ms. Havisham report for 2020?

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Definitions:

Sensory Memory

The structure of memory first encountered by sensory input. Information is maintained in sensory memory for only a fraction of a second.

Visual Stimuli

External cues that are perceived by the visual system, shaping our understanding of the environment.

Qualitative Improvement

Refers to enhancements in the quality or nature of something rather than its quantity.

Adolescence

A developmental stage that marks the transition from childhood to adulthood, characterized by physical, psychological, and social changes.