<em>Answer</em>:
<u>$52,000</u>
Explanation:
Remember, the FIFO inventory costing method records the inventory value based on the cost of the earliest (first) purchased or in hand balance.
The effective tax rate would usually be applied after the sales, however using FIFO we assume the first value of the inventory prior to the tax deduction.
= 4000 x $13
= $52,000
Therefore, the gross profit for the period is $52,000.
Answer: The answer that is correct is the last one, which is shape.
I hope this helped!
Explanation:
a) A free market would allow the laws of demand and supply to flourish; prices of commodities will be set by manufacturers based on demand. However, Government regulations which interfere with the free market is going to result in feeling the pain of monopoly.
b) Indeed, the price mechanism when controlled by the government can result in efficient provision of public goods.
One such example of a public good ls PMS (premium motor spirit) used as petrol in most vehicles. Controlling the price of petrol by the government in most cases helps avoid excessive charges from petrol stations per pump price.
Answer:
On the transfer of the building,
Appreciation of building = FMV - Adjusted Basis
= $50,000 - $10,000
= $40,000
WFI has taxable transaction and gain recognition of $40,000.
On the transfer of the land,
Appreciation of land = FMV - Adjusted Basis
= $150,000 - $90,000
= $60,000
WFI has taxable transaction and gain recognition of $60,000.
