Answer: $438
Explanation:
Antoine's tax basis in the stock received in the exchange will be gotten as the adjusted basis of asset exchanged which will then be decreased by the liability assumed on the property that's transfered. This will be:
= $535 - $97
= $438
Therefore, Antoine's tax basis in the stock received in the exchange is $438.
Answer:
The net income will be "$36,250".
Explanation:
The given values are:
Administrative expenses
= $15,000
Fixed overhead costs
= $30,000
According to the question:
The sales will be:
=
=
The production cost of the variable will be:
=
=
Variable selling will be:
=
=
The net income will be:
⇒
On substituting the values, we get
⇒
⇒ ($)
Answer:
The correct answer is A: selective demand stimulation
Explanation:
Selective demand happens when companies deliver messages that portray their brand as the best match for the needs and desires of the target market. Selective demand features the advertiser trying to influence the target audience to select its brand over alternatives. Selective demand advertising is for businesses competing in well-established industries and markets.
Companies use a variety of strategies to depict selective demand. Some use benefit positioning, where they showcase the specific benefits of their products that are unique in the market. Others use <u>competitive positioning, where they state how their products are better or distinct from those offered by competitors</u>. Another positioning alternative is user positioning. This is where the brand focuses on matching its benefits to the needs of a particular type of user.
In this case, the company is using competitive positioning. The potential market must see clearly how your offering is different from that of your competition. It’s about winning a spot in the competitive landscape, putting your stake in the ground, and winning mindshare in the marketplace.
Answer:
Option (D) 41.86 % for debt, 58.14% for equity
Explanation:
Market value of debt = $24 million × 120%
= $24 million × 1.20
= $28.8 million
Market value of equity = 2 million shares × $20 per share
= $40 million
Therefore,
Total = $28.8 million + $40 million
= $68.8 million
Therefore
,
Weight of Debt = [ Market value of debt ÷ Total ] × 100%
= [ $28.8 million ÷ 68.8 million ] × 100%
= 41.86%
Weight of Equity = [ Market value of equity ÷ Total ] × 100%
= [ $40 million ÷ 68.8 million ] × 100%
= 58.14%
Hence,
Option (D) 41.86 % for debt, 58.14% for equity