Answer:
The differential revenue is equal to $25,000.
Explanation:
Differential revenue is the difference in revenue that may occur due to different course of actions.
Here, the projected revenue of Alternative A is $125,000.
And, the projected revenue of Alternative B is $150,000.
The differential revenue can be found by calculating the difference between these two.
Differential Revenue
=$150,000-$125,000
=$25,000
So, the differential revenue for this decision will be $25,000.
Answer:
At least the 110,000
The deficiency will be based on jurisdictions and the state at which the bankruptcy occur.
Explanation:
Baily will receive the 110,000 as the mortgage collateral was the real state. Once it was sold, Baley received the 110,000.
Sparkman offer is for unsecured claims, the mortage is secured, as the mortage is secured through mortgage origination.
Once Sparkman filed bankruptcy, the lender which is Bailey executed foreclosure to take ownership of the property and sell it to pay off the loan.
After foreclosure, Mailey has little to no resources for the remaining debt.
It will depend heavily on jurisdictions if Baily can force Sparkman to pay the 40,000 remaining.
Answer:
b. $790,000.
Explanation:
The computation of the taxable income for X purpose is shown below:
Federal Taxable income $750,000
Add: Deduction for state income taxes non-deductible $50,000
Less: Interest on federal obligations i.e. deductible $10,000
Taxable income $790,000
Hence, option b is correct
Answer:
Hannah will lose her suit.
Explanation:
Niels and Hannah did not have a binding deal. They did not decide on a specific lot of land or on a price. It is never even decided how the two of them will decide on a fair method of agreeing on the price. Don't be fooled by words like binding contract. The terms are too vague and therefore Hannah will ultimately lose the case.
An agreement is any understanding or arrangement reached between two or more parties. A contract is a specific type of agreement that, by its terms and elements, is legally binding and enforceable in a court of law.
