Answer:
Option A
Explanation:
In simple words, A liability refers to an agreement among one entity and another which has not yet been fulfilled or accounted for. A liability is anything that a individual or firm owes due to any past transaction, typically a amount of money. Over period, liabilities become settled by shifting economic advantages involving property, products or services.
For each of the following goods that are imported in the United States, abundant input is the only source of comparative advantages that accounts for that country's comparative advantage. Therefore, the option A holds true.
<h3>What is the significance of a comparative advantage?</h3>
A comparative advantage can be referred to or considered as a situation in which a producer has an economic advantage over the other in a number of economic activities. At least two economies need to be a part of the society for the occurrence of a comparative advantage.
Abundant inputs is one of the key sources of comparative advantage. It is considered as a source that can account for another country's comparative advantage, when it lets the United States import its goods.
Therefore, the significance regarding comparative advantage has been aforementioned.
Learn more about comparative advantage here:
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Answer:
1) adverse selection will lead those who are more reckless to purchase the warranty
2) moral hazard will lead those who purchase to be more reckless
Explanation:
Adverse selection might be a factor if more people bought the goods that were at a more higher risk to abuse the product compared to the customer who is at low risk to misuse the product. Change in behavior called moral hazard could happen after the customer buys the insurance. This moral hazard could happen if the customers who buys the insurance tend to be careless in using the product. This could cause the fail rate to increase, and might make the company to replacing more units.
Answer:
Required A
:
Mr P's Initial Cost = 20,000
Increased by Debt share= 12,000
Decreased by Loss= (28,000)
Net Balance on adjusted basis as on 2018 = 4,000
Required B
:
Amount realized on sale = 2,000 + 12,000
= 14,000
Adjusted Basis = (4,000)
Net Gain = 10,000
Required C
:
If PPY is a Corporation then its share of loss would be limited to how much she had invested at the time of purchasing that Interest and would not include Entity's share of Debts.
Hence her Loss Deduction would be Limited to $ 20,000 and her adjusted basis on January 1, 2019 would be 0 and her net gain would be $2,000 (i.e. sale of her Interest)
Therefore,
Deduction = $20,000
Gain recognized = $2,000
Since the average risk project is estimated to be a 12% rate of return, then adjusting for a lower risk than average project should expect a rate of return of 2 % less or 10% since in investments the higher risk investments usually get a higher rate of return.
