Answer:
a. What is the amount and character of Kimberly's recognized gain or loss on the distribution?
Kimberly's capital gain = land's FMV - other land's FMV = $22,675 - $19,850 = $2,825
b. What is Kimberly’s remaining basis in KST after the distribution?
Kimberly's basis = basis + gain - land basis = $18,300 + $2,825 - $15,575 = $5,550
c. What is KST's basis in the land Kimberly contributed after Kimberly receives the distribution?
KST's basis on the land = land's basis + Kimberly's gain = $12,750 + $2,825 = $15,575
Answer:
- $651,234.54
Explanation:
Data provided in the question:
Cost of remodeling = $3.4 million = $3,400,000
Rent paid each year = $820,000
Duration, n = 5 years
Discount rate, r = 15% = 0.15
Now,
Present value of the amount rent paid each year = A ×
Here,
A = Rent paid each year
Thus,
Present value of the amount rent paid each year
= $820,000 ×
= $820,000 × 3.352153
= $2,748,765.46
Therefore,
Benefit = Present value of the amount rent paid - Cost of remodeling
= $2,748,765.46 - $3,400,000
= - $651,234.54
Answer: to increase synergies and have more supply chain control.
Explanation:
A vertical merger is when two or more companies or organizations which are in charge of the provision of supply chain functions that are different merge for a common good.
The main idea behind the merger is to help increase synergies, reduce cost, increase efficiency and productivity and also for more control of the supply chain to be gained.
Answer:Debt equity ratio= 0.92
Explanation:
Debt equity ratio is a company's liquidity ratio that compares its total debt to total equity showing how the proportion of the finance of the company proceeds from its creditors and investors.
its formulae is given by
Debt equity ratio= Total liabilities /Total shareholder's equity
= Debt/ total asset - debt
let the total asset = 100% = 1
Therefore,
Debt equity ratio=Debt/ total asset - debt
= 0.48/ 1 -0.48 = 0.48 /0.52 = 0.9231
Explanation:
a) A free market would allow the laws of demand and supply to flourish; prices of commodities will be set by manufacturers based on demand. However, Government regulations which interfere with the free market is going to result in feeling the pain of monopoly.
b) Indeed, the price mechanism when controlled by the government can result in efficient provision of public goods.
One such example of a public good ls PMS (premium motor spirit) used as petrol in most vehicles. Controlling the price of petrol by the government in most cases helps avoid excessive charges from petrol stations per pump price.