Answer:
$2,000 long term capital gain
Explanation:
As per the data given in the question,
Stock basis = $10,000
At the end stock basis = 0
Basis reduced to = $8,000
Operating income = $10,000
Company makes distribution = $8,000
Here, The distribution will be reduced from stock basis
= $10,000 - $8,000
= $2,000 long term capital gain
Hence, he states that it leaves $2,000 as stock basis.
Answer:
a commercial bank
Explanation:
A commercial bank is a deposit accepting institutions regulated by the central bank of a country. The banks play a crucial role in availing capital to businesses. They accept deposits in the form of savings from customers. They keep a small fraction(reserves) in their custody to cater for withdrawal and loan out the rest. Banks, therefore, pool resources together for businesses and households to borrow.
Since banks have a wide customer base, they are able to mobilize huge amounts of resources to loan out. Commercial banks are the best institution to issue a loan to Glenn and Maggie. Saving and loan, credit unions have a limited membership and may not have sufficient resources to issue a loan to Glenn and Maggie.
Answer:
c. Domestic production of coffee falls, and Ectenia becomes a coffee importer.
Explanation:
As with a change in economic situations related to an individual product, it impacts the nation trading worldwide of that product.
In the given instance the domestic price of coffee falls, and then with this it is obvious that demand tends to increase, also because of decrease in price the contribution of companies domestically tends to decrease, therefore, the companies might not further produce coffee.
And with the resulting demand the country would have to import coffee beans.
Therefore, the correct answer is:
c. Domestic production of coffee falls, and Ectenia becomes a coffee importer.
Answer: The average collection period of the receivables in terms of days was 73 days.
Explanation:
Given that,
Accounts Receivable at the beginning of the year = $390,000
Accounts Receivable at the end of the year = $410,000
Net credit sales during the year = $2,000,000
Average collection period of the receivables in terms of days:
Average accounts receivables = 
= 4,00,000
Net credit sales = 
= 5
∴ Accounts receivable days = 
= 73 days
The average collection period of the receivables in terms of days was 73 days.
