Answer:
The right answer is $50,000
Explanation:
Simply put, adjusted basis is the cost of an object after factors that affects the cost has being considered. These factors usually include taxes, depreciation value and any other cost incurred in getting and retaining the said object. Adjusted basis is important so as to know the right amount to sell.
Adjusted basis increases when an individual factors the cost incurred from taxes and maintenance ad it reduces when he/she factors in depreciation.
In the case of Koch, he already exchanged his machine for another at $50,000, as far as he is concerned at that moment, the adjusted basis is $50,000 because it was exchanged in a fair market.
Brings income and makes the economy better
Answer:
B.) Net income = $10; Comprehensive income = $30.
Explanation:
The computation and effect of these two events increase net income and comprehensive income is shown below:
Since there is a gain on sale of investment so it increased the net income
So the net income would be increased by $10
And, there is an Unrealized gain on investment from an increase in fair value of $20
So, the comprehensive income increased by
= $10 + $20
= $30
Hence, the correct option is B
Answer: Revenue management
Explanation: Revenue management is the process under which an organisation tries to analyze the consumer behavior. This analysis is further used for the objective of making product available in right quantities and at right price so that revenue could be maximized.
In the given case, the company is trying to influence demand by manipulating price, thus , they most be analyzing the relevant factors to do so.
Hence, we can conclude that this is an example of revenue management .
