Number line shows the best estimation for the sum of 3,282 and 5,964?

Melba purchases land from Adrian. Melba gives Adrian $225,000 in cash and agrees to pay Adrian an additional $400,000 one year l

Scorpion4ik [409]

Answer:

Melba's adjusted basis for the land at the Acquisition date is $625000
Melba's adjusted basis for the land one year later is $645000

Explanation:

The adjusted basis for a property/land is the net cost of the property after adjusting for factors that might attract tax as related to the land

The adjusted basis for the land at the acquisition date is the net cost of the land at the acquisition date which will be ( $225000 + $400000 ) because that was the net cost of the Land at the date of acquisition before an agreement was later reached by Melba requiring him to pay $400000 plus an interest of 5%

Hence the adjusted basis for the land one year later will be

= ( $225000 + $400000 ) + 5% of $400000

= ( $625000 ) + $20000

= $645000

6 0

3 years ago

Consider two products, X and Y, that have identical cost, retail price, and demand parameters and the same short selling season

elena-14-01-66 [18.8K]

Answer: b. stocking quantity of product B is higher.

Explanation:

We are using the Newsvendor model and are told that the products have identical cost, retail price, and demand parameters and the same short selling season.

Using this model, it is important to understand 2 terminologies for this question, Overage cost and Underage costs.

Overage Costs is the cost of unused inventor and is calculated by subtracting Salvage Value from the cost price.

Underage costs are costs arising from unmet Demand. In this scenario they are the same because both products share the same demand.

The Overage costs for the products are,

Overage cost for Product X =100-75

=25%

Overage cost for Product Y = 20%

When deciding which product to stick more of we look at the one with the higher CRITICAL RATIO.

The formula of which is,

= Cu/(Cu+Co)

Where,

Cu is the Underage cost,

Co is the Overage cost

As earlier mentioned, both have the same Underage cost meaning that B will give a higher CRITICAL ratio as it's Co is smaller.

Product B should therefore be stocked more than Product A.

8 0

4 years ago

Read 2 more answers

When an investor borrows money to buy stock it is called

Salsk061 [2.6K]

Using a loan to pay for stock is called buying on margin

7 0

3 years ago

Read 2 more answers

When the value of the dollar declines in relation to other currencies, it benefits u.s. marketers who?

horsena [70]

All the rest of the counties since when they do currency exchange their value of monewy is higher and they have to pay less

6 0

3 years ago

Exercise 8-17 Partial-year depreciation; disposal of plant asset LO P2 Rayya Co. purchases and installs a machine on January 1,

Citrus2011 [14]

Answer:

To record he partial year’s depreciation on July 1, 2022

Dr Depreciation expenses $7,500

Cr Accumulated Depreciation $7,500

(to record he partial year’s depreciation on July 1, 2022)

(1) To record disposal as machine is sold for $45,500 cash

Dr Cash $45,500

Dr Accumulated Depreciation $52,500

Cr Loss on asset disposal $7,000

Cr Machinery $105,000

(2) To record insurance settlement of $25,000 due to the machine’s total destruction in a fire:

Dr Cash $25,000

Dr Accumulated Depreciation $52,500

Cr Loss on asset disposal $27,500

Cr Machinery $105,000

Explanation:

The depreciation expense for each year is (105K-0)/7 = $15K => Half-year depreciation expenses = 15K/2 = $7.5K. Thus in Jul 1,2022, we need to book $7K of depreciation expenses for half-year expenses of 2020.

To Jul 1, 2022, the asset has been on book for 3.5 years, thus the accumulated depreciation relating to the asset is 3.5 x 15K = $52.5K which makes the net book value of the asset $52.5K.

So, the sold of asset at $45,500 will results to a loss of $7,000 (45.5K-52.5K) and the insurance settlement of $25,000 will results to a loss of $27,500 (25K - 52.5K)

3 0

3 years ago