Answer:
$75,000 recognised gain
Explanation:
Indigo corporation wants to transfer $150,000 in cash or property to one of its shareholders Linda
Property A has a basis of $75,000
Property B has a basis of $195,000
Therefore the recognized gain or loss of property A is distributed in redemption of Linda's share can be calculated as follows
= fair market value - basis
= $150,000-$75,000
= $75,000 recognised gain
Hence indigo's recognised gain if it distributes property A in redemption of Linda's share is $75,000
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The economic profit is calculated by,
Economic Profit = Total Revenue (TR) – ( Explicit Cost + Implicit Cost)
Total Revenue
Explicit Cost (Cost of land , Labor , capital) per acre = Machinery Ownership costs + Land Charge + overheads
Explicit Cost for 500 acres
Implicit Costs are not given
Economic Profit
Hence the economic profit is .
<h3>
Describe Economic Profit?</h3>
The difference between the revenue generated by the sale of an output and the prices of all inputs used, as well as all opportunity costs, is known as an economic profit. Possibility expenses and explicit costs are subtracted from earned revenues to establish economic profit. Economic profit is necessary because it helps examine an industry's financial and economic progress.
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Answer:
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- <em><u>Option e. $41,442.89</u></em>
Explanation:
An annual payment over a <em>10-year period</em>, with the<em> first payment one year from now </em>and <em>3.5 percent annual growth</em> is modeled by the equation:
Substitute with:
- C = $5,000
- r = 6.5% = 0.065
- g = 3.5% = 0.035
- n = 10
Revenue is the money a company earns from providing services or selling goods to customers
Revenue, which is determined as the average sales price multiplied by the quantity of units sold, is the money made from regular business operations. To calculate net income, expenses are deducted from the top line's (or gross income) total. In the income statement, revenue is referred to as sales.
A company's income is the cash that is generated by its operations. Depending on the accounting technique used, there are various methods for calculating revenue. Sales made with credit will be counted as revenue when it comes to the delivery of goods or services to the customer under accrual accounting. Even if payment hasn't yet been received, revenue may still be recorded in accordance with certain regulations.
To evaluate how successfully a business collects debt, it is important to review the cash flow statement for Revenue.
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