Answer:
A) $200,000 loss recognized by Jean and a basis in the land of $200,000 to Billie
Explanation:
The computation is shown below:
For loss recognized, the amount would be
= Land basis - fair value of land
= $400,000 - $200,000
= $200,000
And, the basis in the land should be equal to the fair value of the land i.e $200,000
Hence, the correct option is A
By dividing the fair value from the land basis we can get the loss recognized
Answer:
a. True
Explanation:
As per the data collected as on April 15, 2019 which reflects the tax day in the united states. On this date, the five greatest companies who deals in tobacco pay $9 billion to the state governments each and every year to settle out the legal proceeding for the year 1998 in order to compensate the states for the tobacco-related cost illness like - cancer, heart disease, etc
Therefore according to the above information, the given statement is true
Answer:
Units to be produced will be 540
So option (a) will be the correct answer
Explanation:
We have given number of units sold = 500 units
Beginning inventory is given = 60 units
And ending Inventory= 100 units
We have to find units to be produced
Units to be produced is given by
Units to be Produced= Ending Inventory + Units to be Sold - Beginning Inventory = 500 + 100 - 60 = 540 units
So 540 units are produced
So option (a) will be the correct answer
Answer:
understand the position of their competitors.
Explanation:
For a business to strive in an environment where competitors are also operating it is very important to have a good understanding of position of competitors in the market place.
In the given scenario there are other other start-up firms and local shops operating in the same community.
The business has completed the segmentation and targeting processes, to ensure that they are best positioning their service within this community.
Next they will have to understand the competition's aims, strategies, and strengths in order to adequately counteract them.
Answer:
a. Decrease
b. Decline
c. Exit
d. No change
Explanation:
The market for gourmet chocolate is in the long-run equilibrium, and an economic downturn has caused the consumer disposable income to fall. Chocolate is a normal good, and the chocolate producers have identical cost structures.
a. This decline in the consumer income will reduce the purchasing power of the consumers. As a result, the demand will decrease. The demand curve will move to the left.
b. This leftward shift in the demand curve will cause the price to decline, As the price falls, the profits earned by the producers will decline as well.
c. In the long run, the firms operate at zero economic profits. So a decline in profits imply that the firms are operating at an economic loss. This will cause the loss incurring firms to exit the market.
d. The long run supply curve will remain the same. It is not affected by change in profits, it changes only with change in the state of technology or availability of resources.
