1) They are young and not so smart o( just a saying), 2) They think they will be rich forever and forever be on top of the world, 3) Ignorance or following the wrong financial advice, 4) Instead of them wisely taking care of their finances, they put it in other people's hands, who of course abuse it as well or take advantage. :)
The impact to likely have on the average inventory in the process is "because larger batches take longer to complete, average inventory will rise."
<h3>What is average inventory?</h3>
An estimation of the worth or quantity of a certain commodity or group of goods over two or more prescribed time periods is known as average inventory.
Some key features of average inventory are-
- By combining the beginning and final inventory values throughout a specific time period, average inventory is indeed the arithmetic mean of inventory during that time frame, which may differ from the average price for the same data set.
- The median price for the same set of data may differ from the average inventory, which is the sample mean of a stock during a specific time period.
- When examining overall sales volume, average inventory statistics can be used as a benchmark, enabling a company to monitor inventory losses.
- A business can keep inventory from the most recent purchase by using moving average inventory.
- Because it enables them to more effectively manage its costs, sales, or business connections, inventory administration is an important success factor for businesses.
To know more about average inventory, here
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Answer:
<em>Lioonis and Rhea's realized gain of exchanged cannot be determined.</em>
<em>Explanation:</em>
<em>From the given question, let us recall that,</em>
<em>Loonis transferred assets with a= $820,000 FMV and a $444,000 adjusted tax basis and received 820 shares.</em>
<em> Rhea transferred assets with a $180,000 FMV and a $75,000 adjusted tax basis and received 180 shares.</em>
<em>The next step is to compute Loonis and Rhea's realized and recognized gain on the exchange.</em>
<em>Now,</em>
<em>The stock of Loonis has a $444,000 substituted basis; Rhea has a $75,000 substituted basis</em>
<em>Loonis assets have a $519,000 carryover basis.</em>
<em>Therefore, Loonis and Rhea's realized and recognized gain on the exchange cannot be determined.</em>
Answer: $12,000
Explanation:
Tebit should offer the amount that Naploc has spent so far on the equipment as the minimum price. Naploc has yet to start production and so has not incurred any sort of variable costs which may degrade or add to the value of the equipment.
The only cost to Naploc so far therefore as a result of the equipment is the $12,000 that has been spent on it already and this is the only relevant amount at that moment therefore it is the minimum that should be offered to entice Naploc to part with it.
