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4vir4ik [10]
2 years ago
13

Oscar owns a building that is destroyed in a hurricane. His adjusted basis in the building before the hurricane is $130,000. His

insurance company pays him $140,000 and he immediately invests in a new building at a cost of $142,000. What is the amount of recognized gain or loss on the destruction of Oscar’s building?
Business
1 answer:
damaskus [11]2 years ago
8 0

Answer:

That is $2,000 loss

Explanation:

After the hurricane Oscar received $140,000 for his loss, the adjusted basis for his property was $130,000 so he had a gain of 140,000- 130,000=$10,000.

According to Sec. 1033(a)(2) since the new property that was built (the replacement) was similar we will recognise the amount received from the insurance company ($140,000) to the extent that it pays for the replacement property.

That is

Gain or loss = amount paid by insurance company- cost of replacement property

Gain or loss= 140,000- 142,000

Gain or loss= -$2,000

That is $2,000 loss

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Becky Shelton, a teacher at Kemp Middle School, is in charge of ordering the T-shirts to be sold for the school’s annual fund-ra
Masteriza [31]

Answer:

a. $2,870, $1,330

b. $5,530, $70

Explanation:

The amount of profit earned is the difference between the total sales and the total cost. The total sales is the product of the selling price per shirt and the number of shirts sold while the total cost is the product of the number of shirts ordered and the cost per shirt.

Opportunity cost is the cost or worth of the alternative foregone.

Profit earned

= 600 * $14 - 790 * $7

= $2,870

Cost of waste due to excess inventory

= $7(790 - 600)

= $1,330

If the school receives actual sales orders for 800 shirts, the amount of profit the school will earn

= 790 ($14 - $7)

= $5,530 ( the number of units sold cannot be more than the number ordered).

The opportunity cost

= $7(800 - 790)

= $70

6 0
3 years ago
Verslas is a firm operating in a monopolistically competitive market. It is currently maximizing profit with an output of 1,200
Marina86 [1]

Answer:

b

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants  

When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero

If firms are earning negative economic profit, in the long run, firms leave the industry.  This drives economic profit to zero

in the long run, only normal profit is earned

If Verslas is producing at a profit maximising point, it means that marginal revenue equal marginal revenue and the firm is earning a normal profit

3 0
2 years ago
When economists say that money is​ neutral, this means​ that: A. a change in the money supply changes nominal variables but not
Brums [2.3K]

Answer:

B. a change in the money supply changes real variables but not nominal variables

Explanation:

Money neutrality is an economic theory that says that money supply only affects nominal varabmles but not real variables.

8 0
3 years ago
Read 2 more answers
Roman Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be $40,000
Setler79 [48]

Answer:

$27,000

Explanation:

Budgeting is the process by which a business projects it's expenditures and revenues within a given period and plans to obtain funds to run the business on the basis of these projections.

In the given scenario Roman company have projected the cash reciepts and cash disbursement within the period.

They now need a particular loan amount to gain cash level of $45,000 at the end of the period.

Final cash balance = Opening balance + Cash receipts - Cash disbursement + Loan

$45,000 = $40,000 + $101,000 - $123,000 + Loan

45,000 = 18,000 + Loan

Loan = 45,000 - 18,000

Loan = $27,000

5 0
3 years ago
Daniel wants to find out if he can notice the difference in light intensity when he adds some lit candles to a set of lit candle
nordsb [41]

Answer:

24

Explanation:

Absolute threshold is a concept that refers to the most minimum level of a sensory stimulus that an individual can sense. Testing this usually require individuals to differentiate the intensity of a stimulus.

A general rule of thumb is that when an individual can sense whether something is stronger 50% of the time, that stimulus level is the person’s absolute threshold.

Thus, in the example of Daniel, we should only pay attention to his 24 candles experiment – since he can recognize the difference in light intensity, 50% of the time, when there are only 24 candles. When he added 11 more candles, making them 35 candles, his ability to recognize the light intensity differences are reduced to 25%.  

6 0
3 years ago
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