Answer:
A
Explanation:
people have to make choice due to limited (opportunity cost)
Answer:
a. A taxable dividend of $15,000
Explanation:
The relevant variables are the friar market value and the tax liability on the land.
The fair market value is the amount at which an asset or a company will be exchanged between a knowledgeable willing seller and a knowledgeable willing seller in an ordinary transaction in the market. Put simply, the fair market value of an asset gives an estimation of the price that a buyer would pay to the owner of the asset if the owner decides to sell the asset.
When a company distributes an asset as a dividend to the owner, any liability taken over on the assets will be deducted from the fair market value of the asset to arrive at the taxable dividend.
From the question, the $55,000 tax liability assumed by Troy will be deducted from the fair market value of the asset to obtained the taxable dividend as follows:
Taxable dividend = Fair market value - Tax liability on the land
= $70,000 - $55,000
= $15,000
Therefore, the taxable dividend is $15,000.
a. a discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date.
So for example if the bill is $100 "2/10 net 30" and you pay within 10 days, you get a 20 cent discount and the balance is $9.80. If you pay in 30 days, the full 10 dollars is due.
