The amount of $225,000 will be the would be the basis of the apartment building for income tax purposes.
Basically, the cost basis is the purchase cost which is $225,000.
The fair market value and appraised cost does not have anything to do with tax basis for income tax purposes.
In conclusion, the amount of $225,000 will be the would be the basis of the apartment building for income tax purposes
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Answer: Principle of contribution
Explanation:
The principle of value states that if the increase in the value of the real estate is more than the cost to renovate, the sellers would financially benefit by doing the renovation is referred to as the principle of contribution.
According to the principle of contribution, the worth of an improvement of a property has to do with its addition or contribution the the property's market value and not the cost of the improvement done.
Answer:
the income elasticity of demand is 0.7
Explanation:
The computation of the income elasticity of demand is shown below:
As we know that
Income elasticity of demand is
= Percentage change in quantity demanded ÷ Percentage change in income
= 7 ÷ 10
= 0.7
hence, the income elasticity of demand is 0.7
The same is relevant
Answer:
A. Product's price
Explanation:
In this question, we applied the law of demand which shows an inverse relationship between the price and the quantity demanded of a particular commodity. If the price increases, the quantity demanded decreased and if the price decreased, the quantity demanded increased.
In the case of a market demand schedule, it takes the price and quantity demanded the overall market.
In this schedule, X-axis shows the quantity demanded of the product and Y-axis shows the price of the product.
According to the given scenario, the most appropriate option is a. product price as the market demand schedule shows that price and quantity demanded are inversely related to each other.
In buyer income, it considers the income of the buyer to purchase the product And option C is related to the producer point of view plus time period are also the not correct option
Answer:
Cost of Goods sold for Planner:
= Goods sold * Cost to produce
= 10,000 * 82
= $820,000
Cost of Goods sold for Schedule:
= Goods sold * Cost of acquisition
= 7,000 * 94
= $658,000
