Answer:
amount recognized gain = $7500
Explanation:
given data
profits = $500,000
basis = $67,500
fair market value = $75,000
interest = 95%
distribution = $90,000
to find out
amount of Shepherd Corporation’s recognized gain or loss
solution
we know that here effect of non liquidating distributions on corporation is gain are recognised on property that is express as
amount recognized = fair market value - Basis .................1
put here value we get
amount recognized = $75,000 - $67,500
amount recognized gain = $7500
Answer:
structural unemployment
Explanation:
Unemployment is a situation where people who are ready and willing to work can not find one.
<u><em>Structural Unemployment</em></u>
<em>Structural Unemployment: </em><em> One of the reasons for unemployment is when the production process is automated. In this instance, works and tasks that were formerly done by humans and now been taken over by machines</em>
<em>For example, the work formerly done by Carl has now been taken over by robotics. Usually , this will lead to mismatch of skills because the skills possessed by Carls are no longer needed by his employer.</em>
Therefore, Carl is experiencing structural unemployment
Answer:
(i) Q=300
(ii) Elasticity of Demand=-3.33 (elastic)
(iii) Income Elasticity= 2.5 (normal good)
(iv) Advertising Elasticity: 1.5
Explanation:
The Demand function is given by
(1) To solve (i) we need to replace P = 200, I = 150, and A = 30 in the demand equation:
(2) To find the price elasticity (how much quantity demanded changes with price) we use the point price elasticity formula
From the above equation we get: 
Replacing in the elasticity formula
in absolute terms the elasticity is bigger than one so it is an elastic demand.
(3) For income elasticity (how much quantity demanded changes with income), we proceed similarly as above. But the derivative is respect to income
[/tex]
Which is bigger than one, denoting this is a normal good because it's bigger than one.
(4) Advertising elasticity (how much quantity demanded changes with expenditures in advertising), we proceed as before
Answer: Company should not expand to either.
Explanation:
Find the expected values of expanding to either country and pick the country with the highest expected value:
China:
= ∑(Probability of outcome * Outcome)
= (20% * 2,000,000) + (30% * 1,000,000) + (50% * -2,000,000)
= -$300,000
Vietnam:
= (70% * 1,000,000) + (30% * -2,500,000)
= -$50,000
<em>Both countries result in an expected loss so company should not expand to either of them. </em>
