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natita [175]
3 years ago
11

Paul sells one parcel of land (basis of $100,000) for its fair market value of $160,000 to a partnership in which he owns a 60%

capital interest. Paul held the land for investment purposes. The partnership is in the real estate development business, and will build residential housing (for sale to customers) on the land (the land is inventory to the partnership). Paul will recognize:
a. $0 gain or loss.

b. $60,000 capital gain.

c. $60,000 ordinary income.

d. $36,000 ordinary income.

e. $36,000 capital gain.
Business
1 answer:
Charra [1.4K]3 years ago
4 0

Answer: B. $60,000 capital gain

Explanation: The land being sold at the rate of $160,000 having a book value of $100,000 will make Paul the owner realise a gain on the sale of the asset of $60,000 (capital Gain)

The gain on the land is a capital gain to Paul as he held the land for investment purpose before selling the land to the partnership business he has a 60% capital interest in.

To Paul, the gain is a Capital gain to him as he owns the asset wholly before selling it to the partnership business which is a real estate business .

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Avia Company sells a product for $150 per unit. Variable costs are $70 per unit, and fixed costs are $1200 per month. The compan
Leya [2.2K]

Answer:

$80 per unit

Explanation:

Data provided in the question:

Per unit selling cost of the product = $150

Per unit variable cost of the product = $70

Total fixed cost per month = $1200

Now,

The unit contribution margin is calculated as:

unit contribution margin = Selling price per unit - Variable cost per unit

Thus,

unit contribution margin = $150 - $70

or

unit contribution margin = $80 per unit

Hence,

The correct answer is option $80 per unit

4 0
3 years ago
Which of the following is an accounting procedure that (1) estimates and reports bad debts expense from credit sales during the
Murljashka [212]

Allowance method of accounting for bad debts .

Option - B

<u>Explanation: </u>

The financial accounting term payments method refers to a system that is unplayable and records a bad debt expenditure estimate in the same period of accounting as the purchase. The deduction is used to adjust the cash flow accounts receivable.

The payment method is a better solution to the direct payment method because it is in line with the matching accounting theory.

Bad debts expenses are recognized soon since bad debts are likely and can be estimated to a fairly precise degree so that they meet the criteria necessary to recognize predicated losses and recognize the costs of bad debts.

7 0
3 years ago
A nondiscriminating monopolist:
max2010maxim [7]

Monopolists do not prefer to produce in the when the demand for a good produced by them is inelastic. Option B is the correct answer.

  • It is common to observe that monopolists, avoid engaging production when the demand for their product becomes inelastic.
  • In order to understand this situation, it is important to address the meaning of inelastic demand.
  • The term 'inelastic demand' refers to a situation where the demand for a product does not increase/decrease (change) when there is an increase/decrease (change) in its price.
  • This does not lead to profits for a monopolist.
  • It is because, a firm will be able to secure profits by producing lower amounts of goods for a higher price when the demand is elastic.
  • Hence, when the demand is inelastic, the increase in the quantity will be sold at the previous standard price, leading to a fall in terms of the total revenue.

Therefore, it is clear that a monopolist will not produce when the demand for a good is inelastic.

Learn more about Demand Elasticity here:

brainly.com/question/5078326

#SPJ10

3 0
1 year ago
Pamprosesong tanong
emmasim [6.3K]

Answer:

can someone plz translate this

Explanation:

so I can answer it then translate my answer to their language?

3 0
2 years ago
An online buying club offers a membership for $300, for which you will receive a discount of 10 percent on all brand-name items
LuckyWell [14K]

Answer:$3000

Explanation:

Club membership= $300

Discount= 10% on every items purchased.

How much will be bought?

Assume:

X= how much will be bought

Therefore,

10% of X= $300

10/100*X=$300

0.1*X=$300

0.1X=$300

Divide both sides by 0.1

X=$3,000

3 0
3 years ago
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