I think it'd be E. I hope that helps!
Answer: The correct answer is " b. $0 and $450,000. ".
Explanation: First we must calculate the amount for which we change the warehouse ($ 350,000 + $ 150,000) = $ 500,000.
The adjusted base of the warehouse was $ 600,000.
Therefore there is a loss of $ 100,000, which is not recognized because it is not realized at that time in the face of an exchange of such characteristics, the base of the office building must be calculated taking into account the postponed loss:
Fair market value ($ 350,000) + Postponed loss ($ 100,000) = $ 450,000.
Answer:
$150,300
Explanation:
The computation of the correct initial cash flow is shown below:
= Capital expenditure + net after taxes + initial investment in inventory
= $33,000 + $112,000 + $5,300
= $150,300
The net after taxes is also term as opportunity cost
And, the initial investment in inventory is also term as change in working capital
All other information which is given is not relevant. Hence, ignored it
<h2>A</h2>
Document everything that happens
Answer:
<em>Adjustments help to ensure that </em><em><u>asset </u></em><em> balances are reported at amounts representing the economic benefits used during the period.</em>