Answer:
$2,343,120
Explanation:
The computation of the after tax salvage value of the asset is shown below:
Written down cost of asset after 4 years = Acquisition cost of an asset - 4 years depreciation
= $9,100,000 × (100 - 20 - 32 -19.20 - 11.52)%
= $1,572,480
Refer to the MACRS table
Now
Selling price = $2,600,000
Gain on Sale is
= $2,600,000 - 1,572,480
= $1,027,520
So,
Tax on Gain is
= $1,027,520 × 25%
= $256,880
So,
After tax salvage value = Sales Price - gain on tax
= $2,600,000 - $256,880
= $2,343,120
Answer:
$12,000
Explanation:
According to the given situation,the computation of the outside basis is shown below:-
Total Outside basis = Adjusted basis - Non-recourse mortgage + G's share of mortgage
= $18,500 - $9,750 + ($9,750 × 3)
= $18,500 - $9,750 + $3,250
= $12,000
Therefore for computing the total outside basis we simply applied the abovbe formula.
Answer: A. Impossibility of performance
Explanation:
Impossibility of contract is a doctrine where by a contract is rendered invalid on the bases of uncontrollable circumstances which renders performance of contract impossible. Impossibility of performance can be difficult to prove.
Competitive price taker firms always earn zero economic profit in long-run equilibrium because of the following reasons which include easy entry & exit, small player etc.
Perfect competition exists when there are many sellers, firms can easily enter and exit, products are identical from one seller to the next, and sellers are price takers.
A perfectly competitive firm must accept the equilibrium price at which it sells goods because it is a price taker.
A perfectly competitive firm will be unable to make any sales if it charges even a small amount more than the market price.
Furthermore, a perfectly competitive firm must be a very small player in the overall market, allowing it to increase or decrease output without affecting the overall quantity supplied and price in the market.
Hence, Competitive price taker firms always earn zero economic profit in long-run equilibrium.
Learn more about Long-run equilibrium:
brainly.com/question/6275304
#SPJ4
This is true. Hope I could help!
