Answer:
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Explanation:
a. Corporation A realized a $4.000 loss, and Corporation Z realized a $68.000 gain on the contribution of business equipment to AZ partnership. Neither corporation recognizes gain or loss.
b. A's basis in it's one-half equity interest in AZ Partnership is $134.000, while Z's basis in it's one-half equity in AZ partnership is $62.000.
c. AZ partnership's basis in the equipment contributed by A is $34.000 and in the equipment contributed by B is $12.000.
Answer:
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Explanation:
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When the long run equilibrium is re-established, the price will be the amount at which a pound was selling initially, which is $3.25 per pound.
The announcement that mad cow disease has been discovered in the United states will momentarily lowers the demand for beef and the price will be forced to come down. But on the long run, the initial equilibrium price will be re-established.
