Answer:
C) $1,200 capital gain.
Explanation:
David's basis on the land was $24,000
liability assumed by other partners = $30,000 x (1 - 10%) = $27,000
liability assumed by David on the partnership's other liabilities = $18,000 x 10% = $1,800
David's gain = liability assumed by other partners ($27,000) - land basis ($24,000) - additional liability assumed by David ($1,800) = $1,200 gain
When a partner contributes property to a partnership, his/her gain or loss must be determined using the asset's basis, not the fair market value.
<span>The correct answer is
False</span>
Explicit collusions are
not legal because they lead to cartel like behavior. This is because they
involve a situation where a small group of oligopolists recognize their mutual interdependence
and act to coordinate their behavior in the form of a cartel
Answer:
Every business has a moral duty to be a good corporate citizen.
Explanation:
Businesses are formed to make profit, and this is the primary goal of businesses. So when making a business case for a company to act in a socially responsible manner, the benefit to the business as profits is the primary consideration.
If it is argued that every business has a moral duty to be a good corporate citizen, it does not translate to profits or benefit for the company.
So this is a weak argument when a business case is being created for why businesses should act in a socially responsible manner.
Answer:
starting out in a hole that represents economic losses if the firm produces nothing.
Explanation:
Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Fixed costs can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Thus, they are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Some examples of fixed costs in business are loan payments, employee salary, depreciation, marketing costs, rent, insurance, lease, utilities, administrative cost, research and development costs, etc.
Furthermore, fixed costs may be relevant in a decision because it affects the amount of future cash-flow of a business entity.
Hence, the fixed costs for a firm are analogous to starting out in a hole that represents economic losses if the firm produces nothing. This simply means that, the firm is only using it money to fund the all of the necessary items or utilities required for the operation of its business but do not produce any goods or services. Simply stated, the firm is not generating any revenue as its produces nothing.
