Answer:
is it a multiple choice question or?
Explanation:
Answer:
U.S. households or firms wishing to purchase foreign goods or assets.
Answer: $495,000
Explanation: Opportunity cost can be defined as the cost of profits that were foregone by choosing one alternative over other. It is a part of economic cost and is not considered while calculating the accounting cost.
In the given case, company has to forego the sale of 3000 units due to the special order production, thus, the lost sale of those 3000 units is the opportunity cost of fulfilling the special order.
This, can be computed as follows :-
opportunity cost = 3000 units * $165
= $495,000
Answer:
A 1031 Exchange allows a taxpayer like Rodriguez to temporarily differ any capital gains when they sell a property and immediately purchase another property using the proceeds from the sale. In the first part of the question, Rodriguez sold a property that had a basis of $57,000 for $65,000, and immediately but another property worth $65,000. That means that he doesn't need to immediately pay any taxes for the $8,000 gain.
But if the situation is the opposite. Instead of making a gain, Rodriguez lost money, then he should immediately record the $8,000 loss in order to lower his taxes. The less taxes you pay, the better. The whole idea of the 1031 Exchange is to defer taxes that you owe, not to defer losses that will lower your taxes.
The answer you are looking for is a planned economy