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zlopas [31]
3 years ago
10

David contributes investment land with a basis of​ $24,000 and an FMV of​ $40,000 to a partnership for a​ 10% interest in partne

rship​ capital, profits, and losses. The land is subject to a​ $30,000 recourse​ liability, which is assumed by the partnership. The partnership has other recourse liabilities of​ $18,000. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. David must recognize a
a. $3,000 capital gain.
b. $3,000 capital loss.
c. $1,200 capital gain.
d. $1,200 capital loss.
Business
1 answer:
creativ13 [48]3 years ago
4 0

Answer:

C) $1,200 capital gain.

Explanation:

David's basis  on the land was $24,000

liability assumed by other partners = $30,000 x  (1 - 10%) = $27,000

liability assumed by  David on the partnership's other liabilities = $18,000 x 10% = $1,800

David's gain = liability assumed by other partners ($27,000) - land basis ($24,000) - additional liability assumed by David ($1,800) = $1,200 gain

When a partner contributes property to a partnership, his/her gain or loss must be determined using the asset's basis, not the fair market value.

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avanturin [10]

Answer:

Favorable for price and unfavorable for usage.

Explanation:

Provided Information,

Standard Material = 2.2 pounds per unit

Standard cost = $2 per pound

Actual Quantity = 2.3 pounds per unit

Actual cost = $1.95 per pound

In Material Price variance we have = (Standard Price - Actual Price) \times Actual Quantity

Since Standard Price $2 is more than actual price = $1.95 the variance is favorable.

In material quantity variance we have = (Standard Quantity - Actual Quantity) \times Standard Rate

Since actual quantity used = 2.3 pounds is more than standard 2.2 pounds the variance will be unfavorable

Therefore, Price Variance = Favorable, and Quantity Variance = Unfavorable.

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3 years ago
Suppose the exchange rate is 90 yen per U.S. dollar and the United States wants to keep the exchange rate at a target rate of 90
ikadub [295]

Answer:

Option A, buys dollars to raise the exchange rate, is the right answer.

Explanation:

Option A is correct because when the Fed will buy the dollars then only the demand for dollars will shift rightwards. Consequently, the dollar price or exchange rate will go up. Therefore, the Fed will buy the dollars to increase the exchange rate. In another case, if the Fed wants to decrease the exchange rate then it will sell the dollars, and selling of dollars will shift the supply rightwards. Thus, the exchange rate will fall.

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The soccer team is planning to sell health bars for a fundraiser. the prices of purchasing health bars from two different compan
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3 years ago
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malfutka [58]
First solve the inner parenthesis.

[7 * (5)] - 20

Solve what is in the parenthesis.

35 - 20= 15

Hope this helps!
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Suppose the current issue of The New York Times reports an outbreak of mad cow disease in Nebraska, as well as the discovery of
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As illustrated in the attached diagram, there will be higher quantity demanded at higher prices than before.

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