Answer:
A 1031 Exchange allows a taxpayer like Rodriguez to temporarily differ any capital gains when they sell a property and immediately purchase another property using the proceeds from the sale. In the first part of the question, Rodriguez sold a property that had a basis of $57,000 for $65,000, and immediately but another property worth $65,000. That means that he doesn't need to immediately pay any taxes for the $8,000 gain.
But if the situation is the opposite. Instead of making a gain, Rodriguez lost money, then he should immediately record the $8,000 loss in order to lower his taxes. The less taxes you pay, the better. The whole idea of the 1031 Exchange is to defer taxes that you owe, not to defer losses that will lower your taxes.
Answer
We cannot know that the future will resemble the past by means of demonstrative reasoning,since there is no contradiction in suggesting that the future will not resemble the past.
:) Hope this helps
Answer:
$8,125,000
Explanation:
Break-even point is the level of sales on which business has no profit no loss situation. The business only covers the variable and fixed cost at this point.
Total Contribution ratio = (65% x 30%) + (35% x 50%) = 19.5% + 17.5% = 37%
Fixed cost = $4,625,000
Break-even point = Fixed cost / Contribution margin ratio = $4,625,000 / 37% = $12,500,000
Break-even Sales for Sports Division = $12,500,000 x 65% = $8,125,000
Answer:
pricing low
yes
Explanation:
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing.
Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.
if either firm charges high, they either earn 11 million or 2 million.
if either firm charges low, it would earn either 15 million or 8 million.
because the payoffs of charging low is higher than the payoffs of charging high, the best strategy is for the firms to charge low if there is no cooperation.
the game is a prisoners dilemma because the choice the firms make isn't the choice that will yield the highest payoffs. the choice that would yield the highest payoffs is to both charge high prices.
