I believe the answer is C
Answer:
$950,000
Explanation:
As per IRS section 332, in the case when the parent company received a property when the complete liquidation of subsidiary company is done so the receipts of such property would not recorded either any loss or gain. Also the basis of the parent company assets would be carry over basis.
So here the basis would be $950,000
The same is to be considered
He is going to reduce the price of the item because it may because of the price and the demand rate that the item isnt selling.
Answer: a. DN
Explanation:
The Minimum Acceptable Rate of Return (MARR) which is also known as the Hurdle Rate is the rate of return that will be earned by an investment to ensure that it will cover its cost.
This means that below the MARR, the project will bring in less than the costs it incurred. This is therefore not ideal.
The rate of return on each increment was less than the MARR of 17% which means that they are not profitable.
The company should not invest or rather Do Nothing.
