d. tyler says his profit is $34,100, and greg says he lost $6,500.
Accounting profit is simply revenues minus explicit (direct) costs whereas economic profit factors in opportunity costs and explicit costs.
For the market to reach equilibrium, you would expect prices to rise.
<h3>What is a shortage?</h3>
A shortage exists when quantity demanded exceeds quantity supplied. This is because price is below equilibrium price. Equilibrium price is the price at which quantity demanded is equal to quantity supplied.
For a shortage to be resolved, prices would rise until equilibrium price is reached.
To learn more about equilibrium, please check: brainly.com/question/26075805
Answer:
Jackson can only deduct $0.
Explanation:
The treatment of this question falls under Section 1244 of the IRS and its treatment for Tax.
According to Section 1244 Stock, there are conditions before a stock loss can be deducted as an ordinary loss.
Two of the requirements are as follows:
- The shareholder must have purchased the stock and not received it as compensation.
- Only individual shareholders who purchase the stock directly from the company qualify for the special tax treatment.
In the case of Jackson, the stock was inherited from his parents and not purchased directly from Bean Corp disqualifying from the provision of the section.
Answer: e. Decreases asset and expense accounts, and increases liability, common stock, and revenue accounts.
Explanation:
Let's evaluate each of the options as follows:
a. Is always a decrease in an account - This is false because a credit entry increases liability, common stock and revenue accounts.
b. Is recorded on the left side of a T-account - Although in modern day accounting, the use of T-account has been relegated to the background. However, if entries are to be recorded using the T-account, all debits are posted to the left side while all credits are recorded on the right side of the account.
c. Increases asset and expense accounts, and decreases liability, common stock, and revenue accounts - It does not increase asset and expense accounts, rather it reduces them. The opposite applies to liability, common stock, and revenue accounts.
d. Is always an increase in an account - This is false.
Therefore, option e is correct because a credit entry reduces asset and expense accounts, and increases liability, common stock and revenue accounts.
