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NNADVOKAT [17]
4 years ago
15

Jackson is a 30 percent partner in the JJM Partnership when he sells his entire interest to Rhonda for $112,000 cash. At the tim

e of the sale, Jackson's basis in JJM is $64,000. JJM does not have any debt or hot assets. What is Jackson's gain or loss on the sale of his interest?
A. $48,000 ordinary income.B. $24,000 capital gain and $24,000 ordinary income.C. $48,000 capital gain.D. Gain or loss cannot be determined.
Business
1 answer:
mart [117]4 years ago
3 0

Answer: C. $48,000 capital gain

Explanation:

To calculate the Gain or loss on the sale of Jackson's interest we will subtract his adjusted basis from the sale of his entire interest in the following manner,

Gain(loss) on sale of interest = Amount realised - Adjusted basis in partnership

= 112,000 - 64,000

= 48,000

$48,000 will be his Gain on the sale of his interest. It will also be considered CAPITAL as he does not have Hot assets like inventory just equity.

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Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $1,200 million in the coming year. In addition,
Nata [24]

Answer:

$1,005 million

Explanation:

The computation of the free cash flow is shown below:

= EBIT × (1 -Tax Rate)  + Depreciation & Amortization  - Change in Net operating Working Capital - net capital Expenditure.

= $1,200 million - $180 million - $15 million

= $1,005 million

All other information which is given is not relevant. Hence, ignored it

Since the value of the depreciation and amortization is not given. So, we do not consider it

7 0
4 years ago
If a firm has economies of scale, increasing the quantity produced will lead to: multiple choice 1 higher long run average costs
xeze [42]

It results in lower short run average cost in economies of sale .

<h3>Economies of scale</h3>

Economies of scale refers to the situation where, as the quantity of output goes up, the cost per unit goes down. This is the idea behind “warehouse stores” like Costco or Walmart. In everyday language: a larger factory can produce at a lower average cost than a smaller factory. Figure 2 illustrates the idea of economies of scale, showing the average cost of producing an alarm clock falling as the quantity of output rises. For a small-sized factory like S, with an output level of 1,000, the average cost of production is $12 per alarm clock. For a medium-sized factory like M, with an output level of 2,000, the average cost of production falls to $8 per alarm clock. For a large factory like L, with an output of 5,000, the average cost of production declines still further to $4 per alarm clock.

One prominent example of economies of scale occurs in the chemical industry. Chemical plants have a lot of pipes. The cost of the materials for producing a pipe is related to the circumference of the pipe and its length. However, the volume of chemicals that can flow through a pipe is determined by the cross-section area of the pipe.

Learn more about economies of scale here :

brainly.com/question/15605103

#SPJ4

6 0
2 years ago
When a data point on a control chart falls above the upper control limit, the process being measured is exhibiting what type of
NeTakaya

The characteristic exhibited by the data point on a control chart that falls above the upper control limit is known as a <u>special cause variation</u><u>.</u>

<u></u>

<h3>What is a special cause variation?</h3>

In statistics, a special cause variation refers to a shift in output caused by a specific factor like environmental factors, input parameters etc

In conclusion, the characteristic exhibited by the data point on a control chart that falls above the upper control limit is known as a <u>special cause variation
</u>

<u></u>

Read more about special cause variation

<em>brainly.com/question/17333354</em>

3 0
2 years ago
Alaskan foodstuffs just announced the annual dividend for this coming year will be $0.36 a share and all future dividends are ex
Aleksandr-060686 [28]

Answer: The market rate of return is 7.45%

We follow these steps to find the answer.

Here we can interpret the term 'market rate of return' as the required rate of return on the stock. We represent this as k_{e}

The current market price of stock (P₀), whose dividends are expected to grow for a constant rate is given by:

P_{0} = \frac{D_{1}}{k_{e}-g}

where

D = Upcoming dividend

k_{e} = required rate of return on the stock

g  = constant growth rate of dividends.

Plugging in the values from the question in the formula above we get,

12.20 = \frac{0.36}{k_{e} - 0.045 }

k_{e} - 0.045 = \frac{0.36}{12.20}

k_{e} = 0.029508197 + 0.045

k_{e}= 0.074508197

7 0
3 years ago
Greece and Portugal have different wage rates, tax regimes, and business cycles. The two countries have also reacted differently
eimsori [14]

Answer:

The correct answer is letter "D": optimal currency area.

Explanation:

An Optimal Currency Area or OCA refers to a region that allows the establishment of a common currency for different countries that have similar economic patterns allowing them to set similar macroeconomic policies. The objective is the integration of those economies promoting growth and currency stability.

However, <em>economic hardship in Greece put block currencies such as the euro at risk since it unbalanced the Euro weight in western Europe. The relatively recent United Kingdom auto exclusion of the European Union (EU) through the "Brexit" is also a sign that the European zone has many countries looking for different interests.</em>

4 0
3 years ago
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