Answer:
A) Bruce's basis in the land at the time of the sale = $100,000 (same as his father's)
B) When computing his realized gain, what amount does Bruce use as the selling price and as the contract price?
Selling price= $360,000.
Contract price = $360,000 (selling price) - $120,000 (assumed mortgage) = $240,000.
C) Bruce's total realized gain on the sale = $360,000 - $10,000(selling costs) - $230,000(land + improvements) = $120,000
But his recognized gain in the year of the sale is = ($120,000 / $240,000) x $90,000 = $45,000
B is your answer :) please mark me brainliest
Answer:
125,000 units
Explanation:
Given that,
Target profit = $300,000
Unit sales price = $12
Unit variable cost = $8
Total fixed costs = $200,000
Firstly, we need to find out the contribution margin per unit:
= Unit sales price - Unit variable cost
= $12 - $8
= $4
Now, units required to sold for earning the desired profit is calculated by dividing the sum of desired net income and total fixed costs by the contribution margin per unit. It is calculated as follows:
= (Target net income + Total fixed cost) ÷ Contribution margin per unit
= ($300,000 + $200,000) ÷ $4
= $500,000 ÷ $4
= 125,000 units
Therefore, this company must be sold 125,000 units to earn income of $300,000.
In a city with rent-controlled apartments, landlords do not have an incentive to rent more apartments than they would without rent control.
Rent control is a form of price ceiling. A price ceiling is when the government or an agency of the government determines the maximum price of a good or service. A price ceiling is considered to be binding if it is below equilibrium price and it is considered non-binding if it is above equilibrium price.
<u><em>Consequences of rent-controlled apartments</em></u>
- There would be shortages of apartments as demand would exceed supply.
- it leads to the development of black markets
- It reduces the price consumers pay for an apartment. This increases consumer surplus
To learn more about a price ceiling, please check: brainly.com/question/24312330?referrer=searchResults
Answer: Strategic plan
Explanation: In simple words, it refers to the strategy in which the management tries to set the goals and objectives of the firm and allocate its resources effectively on different uses. It is done for long term purposes.
In the given case, Kia is allocating the resources and setting organisation activities for next five years.
Hence we can conclude that Kia is involved in company's strategic planning.
