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Dennis_Churaev [7]
3 years ago
15

Parrot received land as a gift with a fair market value of $5,000. The land was purchased by the donor for $8,000. The land is s

old for $6,000. What amount of gain should be reported?
Business
1 answer:
Alika [10]3 years ago
7 0

Answer:

Loss of $2,000

Explanation:

In this scenario, we have the following information:

• The adjusted cost basis: $8,000 (the amount paid by the donor)

• The fair market value: $5,000  

• The sold amount: $6,000

Parrot’s basis in the land is $8,000, as same basis the donor had.  

So when he sells it, he must report loss of $2,000 on the sale.

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A study has been conducted to determine if Product A should be dropped. Sales of the product total $224,000 per year; variable e
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Answer: Decrease by $11,200 per year.

Explanation:

First let's calculate the income if the product is not dropped.

Calculting income would be,

= Sales - Variable Costs - Fixed Costs

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= -$33,600

Income(loss) would be a ($33,600) if the product is kept.

If the product is discontinued, it is given that $44,800 in fixed costs will still continue.

These fixed costs cannot be covered in part by the Sales because the product will be discontinued. So that means the net operating Income would simply be a $44,800 loss.

The difference between these 2 options is therefore,

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3 years ago
In an organic organization:_______
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Answer:

d. employees are encouraged to develop knowledge and expertise outside of their specialization.

Explanation:

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II. The horizontal dimension: this divides the organization into subunits.

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In an organic organization unlike a mechanistic organisation, employees are encouraged to develop knowledge and expertise outside of their specialization rather than being static or inflexible.

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Explanation:

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