Answer:
The utility-maximizing rule suggests that this consumer should: Increase consumption of product Y and decrease consumption of product X
Explanation:
Answer:
Carried over at the fair value that exists on date of transfer.
Explanation:
When the investor's level of influence changes, it may be necessary to change to the equity method from another method. When the level of ownership rises from less than 20% to a range of 20% to 50%, the equity method typically would become appropriate and the investment account balance should be carried over at the fair value that exists on date of transfer.
Answer:
$2,000
Explanation:
The computation of the profit in case of Product B processed further is shown below:
Sales value if processed further $35,000
Less: Sales value at Split-Off $30,000
Incremental revenue $5,000
Less: Additional costs $3,000
Incremental income $2,000
First we have to find out the incremental revenue after that deduct the additional cost so that the incremental income or we can say profit could arrive
Answer: B. Adam, Jason, and Cory receive an ordinary deduction of $20,000 in X2.
Explanation:
Based on the information given, since the value of the LLC's capital equals $180,000 after Cory receives his one-third capital interest, Cory will report (⅓ × $180000) = $60,000 of ordinary income in X2.
Also, Adam and Jason will receive an ordinary deduction of $30,000 in X2. The sentence that "Adam, Jason, and Cory receive an ordinary deduction of $20,000 in X2" is wrong. They do not get sane amount as Cory gets a higher amount.
