Answer:<u><em> The amount and character of Daniela's gain or loss from the distribution will be $0.</em></u>
Explanation:
Given : Daniela is a 25% partner in the JRD Partnership, liquidating distribution of $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and accounts receivable with a fair value of $8,000.
<u><em>Here, Daniela will not recognize any gain or loss on the distribution. She will instead reduce the basis of the inventory she receives in complete liquidation of her interest.</em></u>
Answer:
b. 1 pound of ice cream for Ben and 1 pound of cones for Jerry.
Explanation:
Ben and Jerry both produce ice cream. They can have comparative advantage with producing the specialized product. Ben can gain from the trade if it produces more of ice cream and less or no cones. Jerry would gain the comparative advantage if it would produce cones for the ice cream. Both of them can have comparative advantage by selling the specialized products to each other.
<u>Explanation</u>:
Subsidies are meant to reduce the money paid by buyers for units of commodity from the producers, while also reducing the selling price imposed by the producers on their sellers.
For example, the initial cost per unit of a popular commodity is $19 and the government then offers a $9 per-unit subsidy for buyers.
Consumer surplus= $9
Producer surplus= 10+9=$19
Answer:
A. Italy has a comparative advantage over the United States in producing wine.
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries. A country should specialise in the production of the good for whuch it has comparative advantage in and import goods for which it doesn't have comparative advantage in its production.
If Italy has comparative advantage in the production of wine and the US doesn't, Italy should produce wine and export to the US. While, US should produce pasta and export to Italy, if has a comparative advantage in the production of pasta.
A country has absolute advantage in the production of a good or service if it produces more quantity of the good when compared with other countries.
I hope my answer helps you
Answer:
1.- 68 per setup
26.08 per machien hour
15.95 per labor hour
2)
Rims unit cost: $ 32.92
Posts: $ 25.40
Explanation:
First we calcualte the activity rates:
![\left[\begin{array}{ccccc}$Activity&$Driver&$cost&$Total&$Rate\\$Machine Setups&setups&27200&400&68\\$Special processing&machine-hours&130400&5000&26.08\\$General factory&labor-hours&1053000&66000&15.95\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%24Activity%26%24Driver%26%24cost%26%24Total%26%24Rate%5C%5C%24Machine%20Setups%26setups%2627200%26400%2668%5C%5C%24Special%20processing%26machine-hours%26130400%265000%2626.08%5C%5C%24General%20factory%26labor-hours%261053000%2666000%2615.95%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Then, we solve for the total overhead allocated:
![\left[\begin{array}{cccccc}Activity&Posts&Rims&Allocate Rims&Allocate Posts\\Machine Setups&280&120&8160&19040\\Special processing&0&5000&130400&0\\General factory&61000&5000&79772.73&973227.27\\Total&&&218332.73&992267.27\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccccc%7DActivity%26Posts%26Rims%26Allocate%20Rims%26Allocate%20Posts%5C%5CMachine%20Setups%26280%26120%268160%2619040%5C%5CSpecial%20processing%260%265000%26130400%260%5C%5CGeneral%20factory%2661000%265000%2679772.73%26973227.27%5C%5CTotal%26%26%26218332.73%26992267.27%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We now divide by the amount produced to get the manufacting overhead per unit.
218,332.73 / 22,000 = 9.924215 = 9.92
992,267.27 / 80,000 = 12,403340 = 12.40
Now, we calcualte labor per unit:
0.6 x $15 = 9
0.2 x $15 = 3
Rims unit cost:
14 materials + 9 labor + 9.92 overhead = 32.92
Posts:
10 materials + 3 labor + 12.40 overhead = 25.40
