Answer:
Timothy has an excess business loss of $ 0. He may use $ 290,000 of his share of the $580,000 LLC business loss to offset non-business income
.
Prada has an excess business loss of $40,000. She may use $250,000 of her share of the $580,000 LLC business loss to offset non-business income
.
Any excess business loss is treated as part of the treated as part of the taxpayer's net operating loss (NOL) carry-forward.
Explanation:
1. Nonincome loss is claimed when there is no income and therefore no tax will be deducted. The is conditional on the provision of the details of income on which non-income loss is claimed.
2. Taxpayer's net operating loss (NOL) carry-forward is relevant here because it is often used to offset the tax payments in other tax period through the tax authority when allowable deductions is higher than taxable income.
Answer:
D) joint venture
Explanation:
A joint venture refers to a situation where two companies will join together to form a third independent entity that operates in a specific market or develops specific products. The companies only work together to form the joint venture, but the rest of their operations remain separate from each other.
By forming a joint venture, both companies can utilize resources more efficiently while remaining separate in other markets.
Specialization benefits buyers and sellers. Focusing on a limited number of related products or services allows them to use capital and labor more efficiently.So , buyers get better products at lower price and sellers sell more products and they manufacture more products at lower costs.
Answer:
Individual firms and workers are wage takers because they cannot exert any control over the market wage rate.
Explanation:
Remember, a labor market shows the availability of employment and labor, in terms of their supply and demand.
This scenario occurs in a purely competitive labor market.
In this market there many qualified workers with identical skills; meaning the workers share similar skills while the demand for such skills is high because of their importance to firms.
