Answer:
Nicolas has § 1231 gain = $75000
Nicolas has Ordinary gain = $35000
Explanation:
given data
land cost = $8,000
timber cost = $250,000
timber appraised = $325,000
timber sold = $360,000
to find out
amount and character of Nicolas gain or loss
solution
we get here first gain §1231 gain that is
gain §1231 gain = Appraised value of Timber - Adjusted basis ..............1
put here value
§ 1231 gain = $325000 - $250000
§ 1231 gain = $75000
and
now Ordinary gain will be here
Ordinary gain = Selling price - Appraised value of Timber .................2
Ordinary gain = $360000 - $325000
Ordinary gain = $35000
Answer:
It is more profitable to raise the selling price by $2.
Explanation:
To determine whether the company should raise the selling price, we need to determine the effect on income. <u>The best option is the one with the higher sales revenue.</u>
Sales revenue= selling price * number of units
<u>Current:</u>
Sales revenue= 5.5*2,200= $12,100
<u>Proposal:</u>
Sales revenue= 7.5*1,800= $13,500
It is more profitable to raise the selling price by $2.
Answer:
$9,937.89
Explanation:
The computation is shown below:
Given that
Current T-bill yield rate = 2%
Required rate of return = 2.5%
Time period = 3 months
We assume the face value be $10,000
So the willing to pay amount for a three month T- bill is
= Face value ÷ (1 + required rate of return × given months ÷ total months)
= $10,000 ÷ (1 + 2.5% × 3 months ÷ 12 months )
= $10,000 ÷ (1 + 0.625%)
= $9,937.89
The correct answer is C) overallocated.
When using a normal costing system, yearend accounting records will show that indirect costs are overallocated.
This means that in any business, overallocation is when resources are not correctly allocated to the departments or activities needed. SO when planning a project, overallocation can be the mistake of assig more resources to one side of the project, department, area, or unit. This implies the idea that other departments or activities are gings to lack the proper funding to do their work. Of course, overallocation can affect the results of the project or the time is needed to get it done.