Question

Pereira CP - increased value primarily due to community labor - FORMULA; Value of business at beginning PLUS fair rate of return, 10 percent EQUALS SP - Rest is CP?

Answer 1

The formula for calculating the increased value of a business due to community labor is provided, along with an example.

Step-by-step explanation:

The formula for determining the increased value of a business primarily due to community labor is:

Value of business at beginning + Fair rate of return (10 percent) = SP - Rest is CP

For example, if the value of a business at the beginning is $1,000,000 and the fair rate of return is 10 percent, the SP (Selling Price) would be $1,100,000. The rest, which is the CP (Community Labor), would be $100,000.