Answer:
$26,200
Explanation:
Current gain = Fair market value of the property - Basis of qualified property = $26,200 - $21,833 = $4367. Thus, the amount of Grady current gain is $4,367
We now determine the basis that Gredy takes for the share of Eadie stock
Basis = Original basis of qualified property + Current gain
Basis = $21,833 + $4,367
Basis = $26,200
Thus, basis that Gredy takes for the share of Eadie stock is $26,200
Answer:
Accounting profit=$300,000
Explanation:
<em>Accounting profit is the difference between revenue from from production or service activities and the expenditures incurred. </em>
<em>It is the difference between the total revenue and the</em><em> total explicit costs</em><em>. Explicit costs are those transaction cost incurred to generate revenue . E.g the cost of the material , labour, expenses e.tc.</em>
On the other hand, economic profit includes accounting profit plus opportunity cost. Opportunity cost is the value of the benefits sacrificed in favour of a decision.
Accounting profit = Sales revenue - Explicit cost
Sales revenue = Price × units sold= $15× 1000× 30 = $450,000
1
Explicit cost = $150,00
Accounting profit = $450,000- 150,000 = $300,000
Accounting profit=$300,000
Note we ignore the amount she could have earned because it is an implicit cost
Answer:
The value of the US dollar would go up whilst that of the Chinese currency would decrease.
Explanation:
This would be as a result of the market forces of demand and supply, by buying the US dollar the demand for USD would be increasing on the market and therefore the value/price would increase to meet this demand. The Chinese currency would reduce in value because of the excess supply of it on the market, by buying USD with Chinese currency it would flood the foreign exchange market with Chinese currency. However this would be mitigated to some extent by the increase in reserves.
Answer:
$80,000
Explanation:
The computation is shown below:
Total depreciation expenses = $120,000 × (3 months ÷ 12 months)
= $30,000
Year end bonuses to employees = $200,000 × (3 months ÷ 12 months)
= $50,000
So, the total amount of expense would be
= $30,000 + $50,000
= $80,000
