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gogolik [260]
3 years ago
9

Jay sold three items of business equipment for a total of $300,000. None of the equipment was appraised to determine its value.

Jay's cost and adjusted basis for the assets are as follows: Col1 Asset Skidder Driller Platform Total Col2 Cost $230,000 120,000 620,000 $970,000 Col3 Adjusted Basis $40,000 60,000 0 $100,000 Jay has been unable to establish the fair market values of the three assets. All he can determine is that combined they were worth $300,000 to the buyer in this arm’s length transaction.How would Jay allocate the sale price and figure the gain or loss on the sale of the three assets?
Business
1 answer:
olasank [31]3 years ago
6 0

Answer:

Consider the following calculations

Explanation:

Step 1. Given information.

Asset        Cost        Adjusted Basis

--------------------------------------------------

Skidder   230,000      40,000

Driller       120,000      60,000  

Platform  620,000        0

-------------------------------------------------

Total         970,000      100,000

Step 2. Formulas needed to solve the exercise.

Allocation for each asset =  value sold * (adjusted basis / total)

Gain on sale = Sales price - Adjusted basis amount

Step 3. Calculation and Step 4. Solution.

Sales price is allocated on the basis of adjusted value.

  • Skidder = 300.000 * 40.000/100.000 = 120.000

  • Driller = 300.000*60.000/100.000 = 180.000

  • Platform = 300.000*0/100.000 = 0

Gain on sale = Sales price - Adjusted basis amount

                        = 300.000 - (40.000 + 60.000 + 0)

                        = 200.000

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Answer:

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Explanation:

We proceed as follows;

Firstly calculate MC when e = -2, where MR = MC

(P-MC) / P = 1 / IeI

Here P = $34 and e = -2

(34 - MC) / 34= 1/ I-2I

(34 - MC) / 34= 1 / 2

78-2MC = 34

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MC = 34/2

MC = 17

Now, as we have MC, we will calculate the new price when e = -3

(P-MC) / P = 1 / IeI

(P - 17) / P = 1 / I-3I

(P - 17) / P = 1 / 3

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3 years ago
Which of the following decisions is part of the HR function of compensation?
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Answer:

D. Whether to pay office workers a wage or a salary

Explanation:

The HR compensation functions entail rewarding employees for work done. Employee compensation includes monetary payments such as salaries, wages, overtime, profit sharing, allowances, or bonuses.

Non -monetary compensation includes benefits such as housings, paid car, insurance coverage, and stock ownership.

In consultation with the other managers, the HR managers determine the level and combination of compensation for every employee. HR has to decide whether to employ office workers on a part-time or full-time basis. Equally, HR determines whether to pay the office workers either a salary or wages.

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During the year, Hamlet Inc. paid $22,000 to have bond certificates printed and engraved, paid $170,000 in legal fees, paid $9,0
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Answer:

$481,000

Explanation:

Bond issue costs are either direct or indirect costs:

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Alex withdrew $500,000 from an account that paid 5 percent annual interest and used the funds to purchase real estate. After one
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Answer:

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Explanation:

The computation of the economic profit is shown below;

Economic profit is

= Revenue - Explicit cost - Implicit cost

= $550,000 - $500,000 - $500,000 × 5%

= $550,000 - $500,000 - $25000

= $25,000

Hence, the economic profit on this deal was $25,000

Therefore the correct option is a.

We simply applied the above formula so that the correct value could come

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1. Ira Schwab opens up a Schwab IRA and places $2,000 in his retirement account at the beginning of each year for 10 years. He b
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He will have $102,979 in his retirement account in 10 years.

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FV = $2,000 [ ( ( 1 + ( 0.05 / 4 )^40 ) - 1 / ( 0.05 / 4 )

Future value = $102,979

So, Ira Schwab will have $102,979 in his retirement account in 10 years.

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