4320 . this prob would have been answered faster under the mathmatics topic
Answer:
True
Explanation:
As for calculating the gain or loss on distribution of any asset, in any case the company shall consider the fair market value at the time of distribution, and accordingly, the gain or loss shall be:
Fair market value - Tax basis of such asset.
Here, in the given instance
Fair market value of land = $200,000
Tax basis of land = $50,000
Thus, gain on distribution = $200,000 - $50,000 = $150,000
This will not be different in any case, whether the earnings are positive or negative.
Therefore, the statement is True
Answer: In managing a political risk, the first thing to do is to go on a research, to determine the type of political risk that is likely to occurs in the country or state, and the level of influence this risk has on your business. If the risk is manageable, then investment can start, but before start, you should get a political risk insurance certificate, from a national insurance body or an international insurance body. If at a time the risk becomes higher, that it is likely to affect the production of my profit. The business will be incorporated with a government owned business. So as to sustain the business profit, because no Government will want to establish any law that will have big negative effect upon its own business. If the high risk is as a result of the host community, then the business should be incorporated with the community, so that their will see a sense of belonging to the business.
Explanation:
The political risk found in managing any business are the influences government policies have on that business, this includes taxes,spending,regulation,currency valuation,trade tariffs, minimum wage and environmental regulation.
