Why Thomas's income didn't get reduce with his share of charity of $4800?
His portion of income is 40% of 212,000=84800 + 60,000 guaranteed payment =144,800
Then where is the treatment of 40% of 12000 charity for his portion?
Lease obligation = lease liability.
Lease liability = 48. Lease obligation = 48.
Interest payable = 4.8.
Total liability=lease liability+interest payable= 52.8.
Question asks for lease obligation, not total liability.
Where am I going wrong?
There was an interest payment to be made of 5,000. To the seller to compensate the buyer for the 6months on interest on the bond accrued. Your calculation does not take that into account. Can you please explain why?