Arianne's store is an example of a SOLE PROPRIETORSHIP.
A sole proprietorship is the simplest business form among all businesses. It doesn't have a legal entity because its debts will be personally covered by its owner. All its profit and loss will be enjoys and paid for by Arianne and the coverage of its debts is unlimited.
The scenario you described suggests that the Law of Demand is correct.
Increase in price will always lead to loss of demand, while replacements for that product will grow in demand.
Answer:
a.Maria can offset the $80,000 loss against the $150,000 of income from the retail store.
Explanation:
Maria has been in restaurant firm, for more than 5 years until the current year. So, she is an active participant. Hence, her active loss in her active activity - restaurant loss 80000 can be offset against $150,000 income from the retail store.
Answer:
$13,320
Explanation:
The computation of the warranty expenditure is shown below:
= Sales revenues × estimated warranty expenditure percentage
= $296,000 × 4.5%
= $13,320
By multiplying the sales revenues with the estimated warranty expenditure percentage we can get the warranty expense and the same is shown above
All other information which is given is not relevant. Hence, ignored it
The answer is state and local governments.
Hope this helps
