TOPIC FIVE (TEST - Vocabulary)

Prairee partnership has four equal partners, Dodd, Crank, Pick, and Mack. Each of the partners had a tax basis of $320,000 as of

NemiM [27]

Answer:

mack tax basis in prairee on 31 december = 307000

correct option is a. $307,000

Explanation:

given data

tax basis = $320,000

net business income = $152,000

services rendered = $4,000

distribution = $50,000

solution

we know allocated income is here

allocated income = net business income - guaranteed payment

allocated income = 152000 - 4000

allocated income = 148000

so

mack share of net income is 25 % of allocated income

mack share of net income = 37000

so

mack tax basis in prairee on 31 december = 320000 + 37000 - 50000

mack tax basis in prairee on 31 december = 307000

7 0

3 years ago

4. Each year, Holly's Best Salad Dressing, Inc. (HBSD) purchases 50,000 gallons of extra virgin olive oil. Ordering costs are $1

Norma-Jean [14]

Answer:

HBSD should take the discount because it will

lead to as savings of $1,120.00

Explanation:

step 1

Determine the the inventory cost of EOQ

EOQ =√ (2× Co× D)/Ch

= √(2× 100× 50,000)/ 80% × $0.50

= 5,000 units

Inventory cost = Purchase cost + Ordering cost + carrying cost

$

Purchase cost = 50,000 × $0.50 = 25,000.00

Ordering cost = (50,000/5000)× 100 = 1,000

carrying cost = (5000/2) × $0.50 × 80% = 1,000

Total cost 27,000.

Step 2

Determine the inventory cost for order of 10,000 gallons

Order of 10,000 gallons

Purchase cost = $(0.50-0.03) × 50,000 = 23,500.

Ordering cost = (50,000/10,000) × 100 = 500

Carrying cost = (10000/2) × $(0.50-0.03)× 80% =1880

Total cost 25,880.

Step 3

Compare the cost under the two options

HBSD should take the discount because it will

lead to as savings of $1,120.00 i.e (927,000 - 25,880.)

6 0

3 years ago

Suppose that the real exchange rate between the United States and Brazil is defined in terms of baskets of goods. Other things t

tia_tia [17]

Answer: an increase in the quantity of Brazilian currency that can be purchased with a dollar.

Explanation: An increase in the price of the Brazilian currency in relation to the dollar will increase the real exchange rate. This is because the exchange rate tells the amount of Brazilian baskets a US basket can buy.

The best option to relate the exchange rate with is an increase in the purchasing power of the dollar.

5 0

3 years ago

Flash Co. uses the allowance method to account for bad debts. At the end of 2010, Flash Co.'s unadjusted trial balance shows an

nevsk [136]

Answer:

7500

Explanation:

4 0

3 years ago

Read 2 more answers

assuming there are only two types of outputs in a country: consumer goods and nuclear missiles. all else being constant, as the

Tatiana [17]

All else being constant, as the nation produces more missiles, B. every additional missile will reduce consumer goods production by more and more.

<h3>What is the law of diminishing marginal returns?</h3>

The law of diminishing marginal returns states that after some optimal level of capacity is reached in a production process, an additional factor of production would result in a lessening of consumer goods or output (quantity of production).

This ultimately implies that, the law of diminishing marginal returns would only hold for an economic situation in which some inputs are variable and some inputs are fixed.

In this context, we can infer and logically deduce that as the nation produces more missiles (all else being constant), every additional missile will cause a decrease in the production of consumer goods by more and more in accordance with the law of diminishing marginal returns.

Read more on diminishing marginal returns here: brainly.com/question/13767400

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Complete Question:

Assuming there are only two types of outputs in a country: consumer goods and nuclear missiles. All else being constant, as the nation produces more missiles,

the opportunity cost of consumer wants being satisfied will diminish.

every additional missile will reduce consumer goods production by more and more.

the more likely it is to satisfy all consumer wants.

7 0

2 years ago