Answer:
A 1031 Exchange allows a taxpayer like Rodriguez to temporarily differ any capital gains when they sell a property and immediately purchase another property using the proceeds from the sale. In the first part of the question, Rodriguez sold a property that had a basis of $57,000 for $65,000, and immediately but another property worth $65,000. That means that he doesn't need to immediately pay any taxes for the $8,000 gain.
But if the situation is the opposite. Instead of making a gain, Rodriguez lost money, then he should immediately record the $8,000 loss in order to lower his taxes. The less taxes you pay, the better. The whole idea of the 1031 Exchange is to defer taxes that you owe, not to defer losses that will lower your taxes.
Answer:
Okay, but where is the question or it's free points?
Answer:
The Contribution margin ratio (CRM) is 78.57%
Explanation:
CRM (Contribution margin ratio), it indicates the percentage (%) of each sales dollar available to cover the fixed assets as well as profits of the company.
The formula to compute the contribution margin ratio (CMR) is as:
CMR (contribution margin ratio) = (Sales - Variable expense) / Sales
where
Sales amounts to $56
Variable cost or expense amounts to $12
Putting the values above:
CRM (contribution margin ratio) =($56- $12) / $56
= $44 / $56
= 78.57%
Explanation:
I will try and say the answer
Answer:
The correct answer is C
Explanation:
MC curve stands for Marginal Cost Curve which states the relationship among the marginal or additional cost incurred by the company or firm in the short run product of service or good and the quantity of the product is produced.
And when the curve is downward shift, it means that there is technological change which lead to increase in the productivity and the cost curve downward.
