It is the last one, 7 days
Answer:
Brett's outside tax basis in his LLC interest is $45000
Explanation:
A partner outside tax basis consist of basis of contributed property, partnership debt allocated to the partner without any debt relief. Non recourse debt that is more than basis of contributed property must be given to the partner that contributed to the property.
Brett's outside tax basis in his LLC interest = Cash contribution + basis of building - debt of building + Non recourse loan + non recourse mortgage + remaining mortgage on building
Cash contribution = $5000
Basis of building = $30000
Debt of building = $35000
Non recourse loan = Profit sharing ratio × Non recourse loan = 50% × $50000 = $25000
non recourse mortgage = $5000
remaining mortgage on building = 50% × $30000 = $15000
Brett's outside tax basis in his LLC interest = $5000 + $30000 - $35000 + $25000 + $5000 + $150000 = $45000
Answer:
c. a long-term liability.
Explanation:
Short term liabilities are those liabilities which need to be paid within one year time and Long term liabilities are those liabilities which need to be paid after one year time.
In this question on December 31, Howard Corporation need to pay the principal in 19 years from now, as it it a long period, so amount of principal will be classified as a long-term liability.
Answer:
a. $141,086,622.46.
Explanation:
Calculation for how much must it deposit today
Using this formula
Present Value = Future Value / [ ( 1 + r) n]
Where,
Future Value = 440,000,000
r = rate of Interest= 4%
n = Number of years = 29
Let plug in the formula
Present Value = 440,000,000 / [ ( 1 + 0.04)29]
Present Value= 440,000,000 / 3.1186514519
Present Value= $141,086,622.46
Therefore the amount it must deposit today to fund this liability will be $141,086,622.46
Answer:
Consider the following explanation
Explanation:
Context
Game theory involves two players. They have more than one option to decide. Pay off from each options adopted by two players are available. They have to select a strategy which will maximize their own return. But for optimizing their decision, they have to consider the action of his rival.
In this problem, two players are firm A and firm B. They have two strategies low output and high output. The strategies of firm a are measured in rows and for firm B in columns. They have to select a strategy which will maximize their payy off. Each cell has two pay offs. First one is for Firm A and second one is for firm B.
1. Dominant strategy is a strategy which will always give higher payoffs in comparison with pay off of other strategies. Consider first strategy of firm 1. If it adopts strategy of low output, then firm 2 can also adopt either strategy of low output or high output. In that case pay off of firm 1 will be 300 or 200.
Alteratively if firm 1 adopts high output then pay offs are 200 or 75. 200 is earned if firm B also go for low productivity. It is 75 if firm B adopts high productivity.
Now compare two payoffs side by side. Note that firm A has higher pay off in low output [300,200] in comparison with the pay off of high output [200,75]. So whatever strategy firm B adopts, Firm A will always go for low production. So low production strategy of firm A dominates high production strategy.
Same result is not observed for firm B. Pay off from low production strategy of firm B is [ 250,75]. Pay off from high production strategy are [100,100]. Now compare the two. If Firm A go for low production, then firm B will select low production. It will give pay off 250. Similarly when firm A decides for high production, then firm will also decide for high production. It will maximize its pay off. Amount is 100. Thus no strategy dominates for firm B.
