Answer:
D) $8,000 inventory, $0 land
Explanation:
Tyson's basis in the distributed inventory and land will be $8,000 inventory, $0 land
Because he initially first allocates his outside basis to the assets distributed which is in an amount that is equal to KT's basis which is ($20,000 cash and $8,000 land).
Therefore this results in a required decrease of $0 due to the basis he reduces in the land by the required decrease, which thereby results in a basis of $0 to the land.
Answer:
A confidence estimate.
Explanation:
Confidence estimate is a statistical representation for the possiblity of occurance of any event. The confidence estimate is shown by using interval of estimate, it also known as confidence internal estimation. It show an approximate value of the unknown parameter of probablity distribution. It is useful as defence against judgmental biases.
Answer: (b).no dividend to common stakeholders.
Explanation: The firm should pay no dividend to common stakeholders because the optimal capital requires the use of all their earnings for a given year.
Answer:
Customers will less likely agree to pay high price for an experience good
Explanation:
Once a firms reputation is ruined or tarnished, a great number of customers will naturally lose trust as regards products from that firm. Most customer would not want to gamble with their money even with the slight increase in interests rates, it is expected that a firm should always deliver quality product on a consistent basis. Inconsistency in product quality will lead to a reduction in customer trust and overtime, customer base in general.
Answer:
$200
Explanation:
The computation of the share of the ABC stock worth to you today is shown below:
PV = Annual dividend (P/A, i, n) + Sale value (P/F, i, n)
i denotes the interest rate
n denotes the time period
= $10 (P/A, 5%, 3) + $200 (P/F, 5%, 3)
= ($10 × 2.7232) + ($200 × 0.8683)
= $27.23 + $172.76
= $199.99
= $200
Basically we determine the present value