In December of 2017,Miss Havisham and Pip Form a Wedding

question 47

Essay

In December of 2017,Miss Havisham and Pip form a wedding planning business.Each of them 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 30,2018.For the month of December 2017,the partnership made $3,000 after Miss Havisham's guaranteed payment of $1,000.From January through September of 2018,the partnership made a net income of $65,000 after a $1,500 per month guaranteed payment to Miss Havisham.
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a.How much income should Miss Havisham report for 2017?
b.How much income should Miss Havisham report for 2018?

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Definitions:

Goodwill Compensation

Financial compensation for intangible assets such as brand reputation, customer loyalty, and other non-physical assets that contribute to a business's value.

Environment Richness

The degree to which an environment provides the necessary resources, stimuli, and opportunities for learning and development.

Organizational Designs

The process of structuring a company's roles, responsibilities, and relationships to achieve its goals efficiently.

Economic Conditions

Refer to the prevailing state of the economy in a specific area or globally, encompassing factors like unemployment rates, inflation levels, and growth indicators.