A tenant whose apartment has just been converted to cooperative ownership
Answer:
Puffin’s E & P after taking into account the distribution of the car is $6,000.
Explanation:
E & P will be decreased by the higher of the adjusted basis or the fair market value of the distributed property, net of any liabilities. The distribution losses will not be taken into consideration when determining E & P. Thus the current E & P of Puffin’s $30,000 is reduced by $24,000 ($30,000 basis of the car minus the liability amount). The remaining after the distribution current E & P will be $6,000.
Therefore, Puffin’s E & P after taking into account the distribution of the car is $6,000.
Answer:
Predetermined manufacturing overhead rate= $2 per direct labor dollar
Explanation:
Giving the following information:
Estimated overhead cost= $1,200,000
Estimated direct labor cost= $600,000.
<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>
<u></u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,200,000 / 600,000
Predetermined manufacturing overhead rate= $2 per direct labor dollar
Answer: Lower
Explanation: A shortage occurs when there are less available in the market. When the current price is less than the equilibrium price, the demand for the good is greater than the supply for the good. When demand is more than supply, the buyers are unable to get the goods they want. Thus, there is a shortage in the market.
Thus, if a shortage exists in the hamburger market, then the current price must be <em>lower </em>than the equilibrium price.
