Answer:
3. Correctly ignored a sunk cost
Explanation:
Sunk costs refer to those costs which have been incurred in the past, which are non recoverable and which have no current or future benefits.
Sunk costs are considered as irrelevant for decision making process as they do not relate to current period and have no future implications. For example, research and development expenditure incurred in the past represents a sunk cost.
In the given case, the ticket for opera was already purchased for $100 which can now neither be recovered nor transferred. Thus this cost is irrelevant for decision making as expenditure has already been made. When Shen decided to go for a party instead of the concert, Shen has correctly ignored a sunk cost.
Answer:
Yes, because the statement was false.
Explanation:
Breach of warranty is defined as a misrepresentation of the quality or type of a product. The seller fails to fulfil a promise or claim made during a transaction.
When a good is being sold there are certain assertions which the seller must stand behind.
In this scenario Mark tells Leslie that his stereo has quadraphonic speakers because he was told that when he bought it.
The fact that the stereo did not have quadrophinic speakers should have been discovered and stated by Mark. The misinformation he got when buying the stereo does not clear him of breach of warranty
Emma and Laine form the equal EL Partnership. Emma contributes cash of $100,000. Laine contributes property with an adjusted basis of $40,000 and a fair market value of $100,000
Explanation:
As given in the question
- <u>Emma and Laine form the equal EL Partnership.</u>
- <u>Emma contributes cash of $100,000 in EL Partnership</u>
- <u>Laine contributes property with an adjusted basis of $40,000</u>
1)How much gain, if any, must Emma recognize on the transfer
<u>Ans: Neither Emma nor Laine ,none of them recognize any gain.</u>
2) What is Emma's basis in her partnership interest
<u>Ans:</u><u>Emma basis in her patnership interest is $100,000 </u>
3) What is Laine's basis in her partnership interest
<u>Ans: Laine's basis in her partnership interest is $40000</u>
4) What basis does the partnership take in the property transferred by Laine
<u>Ans: $40,000</u>
