Three individuals form Skylark Corporation with the following contributions: Cliff, cash of $50,000 for 50 shares; Brad, land wo
rth $20,000 (basis of $11,000) for 20 shares; and Ron, cattle worth $9,000 (basis of $6,000) for 9 shares and services worth $21,000 for 21 shares. a. These transfers are fully taxable and not exempt under IRC § 351 because Ron’s stock received for services does not count toward the 80% control test.
b. Ron’s basis in his stock is $30,000.
c. Ron’s basis in his stock is $21,000.
d. Ron has income on the transaction of $21,000.
e. Brad’s basis in his stock is $20,000.
Some examples of capital used to produce goods are machinery, human workers, equipment, basically anything that is used by a factory in the production process. You didnt list any options so I can't tell you which one isn't, but I hope this helps!
In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business. ... In classical economics, capital is one of the four factors of production. The others are land, labor and organization
The correct answer is: an expansionary gap; decrease the money supply.
Explanation:
An expansionary gap is when genuine output surpasses potential output. At the end of the day, the economy is incidentally working over its long-run potential as estimated by real GDP.
