Answer:
What is Bob’s basis in the warehouse and in the land?
- warehouse basis = $53,571
- land basis = $71,429
Explanation:
since the total appraisal value was $75,000 + $100,000 = $175,000, we must allocate the basis using a coefficient = $125,000 / $175,000 = 0.714285
- warehouse basis = appraised value x coefficient = $75,000 x 0.714285 = $53,571
- land basis = appraised value x coefficient = $100,000 x 0.714285 = $71,429
- total = $53,571 + $71,429 = $125,000 (total purchase price)
Since the transaction price was lower than the appraised value, we must adjust the basis for both the land and the warehouse in the same proportion.
It is true that the goal received by regional manager Farrah, to reduce the company's costs in the next three years corresponds to an example of a strategic objective.
<h3 /><h3>Strategic planning</h3>
It corresponds to a document where the course of actions that will cover the medium and long term organizational are detailed so that the stipulated objectives and goals are achieved.
Therefore, the strategic objectives of a company will be contained in the strategic planning, and can be understood as the definition of the results that it intends to achieve in a period of time, to increase the vision and the organizational results.
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If Natasha can produce either 5,000 pounds of cheese or 20 houses per year and Jameson can produce either 5,000 pounds of cheese or 10 houses per year then,
- Natasha has a comparative advantage in the production of cheese.
- Jameson has a comparative advantage in the production of cheese.
<h3>What is comparative advantage?</h3>
The ability of an economy to produce a specific good or service at a lower opportunity cost than its trading counterparts is known as comparative advantage.
The example of comparative advantage is-
- For instance, if a nation excels in producing both cheese and chocolate, they can choose to allocate the appropriate amount of labour to each product.
- This nation has a comparative advantage in producing chocolate if it takes one hour of labour to make 10 units of cheese and one hour of labour to produce 20 units of chocolate.
The importance of comparative advantage are-
- Ability to create a good or service for a lower opportunity cost is a benefit of comparative advantage.
- Companies with a comparative advantage are able to sell their products and services for less than their rivals do, resulting in higher profit margins and stronger sales margins.
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Read again.
Rethink your thesis.
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Revise.