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NNADVOKAT [17]
3 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]3 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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An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of supply.
Mademuasel [1]

Answer:

B) False

Explanation:

That would be a monopoly (only one supplier).

An oligopoly is a market where there are very few suppliers, and competition is very limited since the barriers to entry are very significant.

For example, the automobile industry is an oligopoly. There are only a few car manufacturers in the world, and they all are very large corporations. It costs hundreds of millions of dollars to introduce a new car model, and every time that happens, the corporations must carry on expensive advertising and promotional campaigns.

4 0
3 years ago
Classifying Cash Flows - Identify whether each of the following would be reported as an operating, investing, or financing activ
Yanka [14]

Answer:

<em><u>Classifying Cash Flows:</u></em>

Retirement of bonds payable  ⇒  <em><u>Financing activity</u></em>

Purchase of inventory for cash  ⇒  <u><em>Operating activity</em></u>

Cash sales  ⇒  <u><em>Operating activity</em></u>

Repurchase of common stock  ⇒  <em><u>Financing activity</u></em>

Payment of accounts payable  ⇒  <u><em>Operating activity</em></u>

Disposal of equipment ⇒  <em><u>Investing activity</u></em>

8 0
3 years ago
If inflation is increasing at 2.4 percent per year, and your salary increases at the same rate, how long will it take your salar
Oksana_A [137]

Answer:

it take 29.23 years, my salary to double.

Explanation:

To make the salary double I have to increase the value of salary by 100%. If inflation rate is 2.4 percent per year and salary increase the same rate the time period to make it double can be calculated as follow.

As every year 2.4% has compounding effect, so we will use compounding formula to solve this problem.

Target value = Existing value ( 1 + growth rate )^time period

200% = 100% ( 1 + 2.4% )^n

2 = 1 ( 1 + 0.024 )^n

2 = 1 ( 1.024 )^n

2 = 1.024^n

Taking log on both sides to solve the n

Log 2 = n Log 1.024

n = Log 2 / Log 1.024

n = 29.23 years

I will take 29.23 year to double the salary

5 0
3 years ago
If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium pri
never [62]

Answer:

If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to <u>rise and the equilibrium quantity to stay the same</u>.

Explanation:

Perfectly inelastic demand curve indicates the quantity demanded for the life-saving medicine remains the same or does not change in response to a change in price.

Since a part of the law of supply states that the lower the quantity supplied, the higher the price; a reduction in the supply of the life-saving medicine will increase its price.

The combining effect of the two above will lead to an increase in the equilibrium price while the equilibrium quantity will remain the same as it will not respond to the change in price.

The attached graph explains this more clearly. In the graph, the demand curve DD is used to represent the perfectly inelastic demand curve for the life-saving medicine. Therefore, the quantity remains at q no matter the changes, either increase or decrease, in price. Movement from the supply curve S1 to S2 indicates a reduction in supply of the life-saving medicine which causes an increase in the equilibrium price from Po to P1 while the equilibrium quantity stays at q.

This therefore shows that if the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to <u>rise and the equilibrium quantity to stay the same</u>.

8 0
3 years ago
The opportunity cost of attending college is likely to be highest for a high school graduate _______A. who can immediately take
podryga [215]

Answer:

who can immediately take over the family business.

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

For a student who chooses to go to college, his opportunity cost is the opportunity of running the family business he forgoed when he decided to go to college.

I hope my answer helps you

6 0
3 years ago
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