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yulyashka [42]
3 years ago
9

Sebastian purchases two pieces of equipment for $100,000. Appraisals of the equipment indicate that the fair market value of the

first piece of equipment is $72,000 and that of the second piece of equipment is $108,000. What is Sebastian's basis in these two assets?
Business
1 answer:
Schach [20]3 years ago
8 0

Answer:

$100,000

Explanation:

According to the internal revenue service ''<u>In most situations, the basis of an asset is its cost to you.</u> <u>The cost is the amount you pay for it in cash</u>, debt obligations, and other property or services. Cost includes sales tax and other <u>expenses connected with the purchase</u>.''

Therefore Sebastian's basis in these two assets is unconnected with the fair market value of the assets but with the cost.

Purchased Equipment is always recorded at its acquisition cost or its net book value, that is after deducting the accumulated depreciation . In the scenario we have no depreciation figures, hence the basis is the cost of $100,000

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Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists f
Zina [86]

Answer:

Model Y

Explanation:

Calculation for the which model is the most profitable to produce

Using this formula

Most profitable to produce=Selling price-Direct materials-Direct labor-Variable support costs

Let plug in the formula

Model X $52 - $8 - $16- $5 = $23

Model Y $60 - $8- $16 - $10 = $26 Most profitable

Model Z $74- $8 - $33 - $10 = $24

Therefore the model that is the most profitable to produce is MODEL Y because it has the highest amount of $26

5 0
3 years ago
Which of the followinThe IS-LM can be viewed as a special case of the AS-AD model where:
CaHeK987 [17]

Answer:

Short run aggregate supply curve is flat ( A )

Explanation:

The special case of the AS-AD following the IS-LM is that the short run aggregate supply curve is flat

This is because in an AS-AD model the price level is constant and AD represents an equilibrium point along IS-LM model,  hence the price been constant, shows that in short run aggregate supply curve will be flat.

7 0
2 years ago
Carla has $10,000 that she would like to save for retirement.
coldgirl [10]

Answer:

higher, stocks, flunctuates, risk, bonds, interest

Explanation:

The chosen responses are the best from the options provided. First, to earn a higher long-term rate of return, stocks offer a higher interest rate than bonds and the reason being that they are riskier.

Stocks belong to the owners of an organisation and as such, they are only entitled to interest after the interests of bond owners and preference stock holders have been settled. Meaning, despite the higher rates of interest offered, it is riskier to be a stock holder than a bond holder

Bond on the other hand, are not equity or company ownership units, they represent debts that the company must pay fixed interest rates on. Although we have the convertible to stock and the non-convertible bonds. However, bonds may be safer due to the fixed interest rates that must be paid but interests are lesser than stocks and irrespective of a company's profitability, a bond holder is only entitled to the fixed interest rate unlike the stock holder who enjoys higher dividends as a result of improved profitability.

4 0
3 years ago
Statement Of Owner's Equity Jay Pembroke started a business in April. Prepare a Statement of Owner's Equity using the following
Dovator [93]

Answer:

$2,433

Explanation:

Net Income = Sales - Expenses

where,

Sales = $3,033

and

Expenses = $600

therefore,

Net Income = $3,033 - $600 = $2,433

3 0
2 years ago
How does a monopoly's demand for labor shift if a second firm enters its output market and the result is a cournot duopoly equil
shusha [124]

Answer: The demand is shared with the new company that enters the market.

Explanation: The Cournot duopoly is an imperfect competition model, that is, the law of supply and demand is not freely used, in which two companies with equal costs compete with homogeneous goods in a static environment, that is, with the same characteristics.

For example: A leading brand of soda in the market, get a competitor that has the same characteristics. People will prefer one of the two brands and they will always lead the market, but they will have to divide the market.

8 0
2 years ago
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