A. Offering a safe product will make more people want to buy that particular product.
Answer:
No option is correct. The options include inventory, while the question does not mention any inventory distributed.
Tyson's basis on the land is $4,000.
Explanation:
Tyson's basis on the land = total distribution - cash distribution = $20,000 - $16,000 = $4,000
A partner only needs to recognize a gain on a distribution when the cash distribution is larger than the partner's basis. In this case, the partner's basis is more than the cash distribution. The partner's basis for the rest of the assets distributed will be equal to the difference between the partner's basis - cash received.
In this case, since the difference is $4,000, then the basis for the land will be reduced.
Answer: Option C
Explanation:
The human resource of any company is the most valuable resource as the use of all other resources are dependent on it.
In the given case, the company have acquired a lot of assets over the years, that means the company do not lack in technology and physical resources like machinery etc.
Now the company can gain a competitive advantage by using the expertise of their employees in usage of the assets acquired.
Hence from the above we can conclude that the correct option is C .
Explanation:
Since it is given that
Acquiring value of an vacant lot = $115,000
Sale value of the vacant lot in cash = $298,000
Since the sale value is more than the acquiring value which reflects the increment in the asset for $183,000 due to which the profit is also increased for $183,000 i.e retained earnings
Now the effect is shown below:
1. Assets = Increase = $183,000
2. Liabilities = No change = $0
3. Stockholder equity = Increased = $183,000
