Answer:
The $2,000 Sue's loss is disallowed due to her tax basis or at-risk amount
Explanation:
Since we have to compute the disallowed sue's loss based on tax or at-risk amount, so we use these amounts only in the computation part.
The computation is shown below:
= Tax basis - At-risk amount
= $9,000 - $7,000
= $2,000
Hence, the other cost like invested amount, qualified noncourse debt, loss amount are not considered. So, it is ignored
Answer:
A. When the U.S. firms set up production units in the advanced nations to meet rapidly growing demand.
Explanation:
Production within other advanced countries begin to limit the potential for exports when the U.S. producers set up their production facilities in advanced nations to deal with high demands of certain products. When the markets reach a mature stage, the products and services become highly standardized and this is when the competition starts depending on the price.
Answer:
The correct answers are the options:
B) The outcome will result in the rights to an activity going to the party that deserves them the most
D) Bargaining will be efficient since transactions costs are eliminated.
Explanation:
To begin with, the concept that is name as "Coase Theorem" is famously known in the microeconomics theory as the statement that describes the economic efficiency of an outcome that involves externalities. Moreover, it indicates that if a trade between two private parties is possible and the transactions costs are low, then it all will end up in a Pareto efficiency situation in where the party that it deserves the most will be benefit himself from that. However the theorem is just that, a theorem, it is very difficult to be applicable for the real life economics due to the fact that in real life the transactions costs are rarely low enough.
- Raising the age when full benefits start to I believe 67.
- Taxing all income instead of just the first 115,000 like they do now.
- Lowering the threshold point where a recipient would start to pay taxes again from other sources of income.