Answer:
$15,000
Explanation:
Calculation to determine Clark's gain or loss on the sale of his partnership interest
First step is calculate The amount realized
Using this formula
Amount realized = ( Cash received + Relief of debt)
Let plug in the formula
Amount realized=$30,000+$25,000
Amount realized=$55,000
Now let determine Clark's gain or loss on the sale of his partnership interest using this formula
Capital gain=Amount realized-Partner's basis in the partnership
Let plug in the formula
Capital gain =$55,000 − $40,000
Capital gain =$15,000
Therefore Clark's gain or loss on the sale of his partnership interest is $15,000
Answer: There will be a shift in the demand curve to the right.
Explanation:
A booming economy is a peak phase in the business cycle when there is rapid economic expansion which results into higher GDP, higher inflation rate, lower unemployment and rising asset prices.
When investors in the stock market expects a booming economy and an increase in the prices of stocks, the demand curve will shift outwards that is, the demand curve will shift to the right. This means that investors will buy more stocks because they are expecting a price increase.
This is graphically shown below
Answer:
Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly
Explanation:
In perfect competition, many sellers are competing to sell an identical product. The market has very many small suppliers. No single supplier dominates the market, meaning no seller has the power to influence the price. The market has very many buyers as well. Suppliers have the freedom to enter or exit the market with ease.
Monopolist competition has very many sellers selling similar but differentiated products. Due to the differentiated aspect, sellers can set the prices for their products. The market has very many buyers.
An oligopoly is where a few big suppliers dominate the market. The oligopoly market may have other smaller suppliers whose market share is a small percentage. Oligopoly may stock or manufacture identical or differentiated products.
A monopoly is where a dominant supplier is selling a particular product without competition. Only one supplier is selling that type of product. An oligopoly can sell lifetime solutions through books.
Answer: Bad debt expenses are generally classified as a sales and general administrative expense.
Answer:
Instructions are listed below
Explanation:
Giving the following information:
CarmelRugs plans to sell carpets for $1,000 each. The company will purchase the carpets from a local distributor for $400 each, with the privilege of returning any unsold units for a full refund.
Jean’sClub has offered Carmel Rugs two payment alternatives for the use of space.
Option 1:
Fixed cost= $17,400 for the sale period
Option 2: 20% of the total revenues earned during the sale period.
Break-even point= fixed costs/contribution margin
Option 1:
Break-even point= 17400/(1000-400)= 29 carpets
Option 2:
Break-even point= (400+200)/(1000-400)=1 carpet (no fixed cost)