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lutik1710 [3]
3 years ago
13

Maria, who owns a 50% interest in a restaurant, has been a material participant in the restaurant activity for the last 20 years

. She retired from the restaurant at the end of last year and will not participate in the restaurant activity in the future. However, she continues to be a material participant in a retail store in which she is a 50% partner. The restaurant operations produce a loss for the current year, and Maria's share of the loss is $80,000. Her share of the income from the retail store is $150,000. She does not own interests in any other activities. a.Maria can offset the $80,000 loss against the $150,000 of income from the retail store. b.Maria will not be able to deduct any losses from the restaurant until she has been retired for at least three years. c.Assuming Maria continues to hold the interest in the restaurant, she will always treat the losses as active. d.Maria cannot deduct the $80,000 loss from the restaurant because she is not a material participant. e.None of these choices applies here.
Business
1 answer:
trapecia [35]3 years ago
3 0

Answer:

a.Maria can offset the $80,000 loss against the $150,000 of income from the retail store.

Explanation:

Maria has been in restaurant firm, for more than 5 years until the current year. So, she is an active participant. Hence, her active loss in her active activity - restaurant loss 80000 can be offset against $150,000 income  from the retail store.

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W.W. Grainger, Inc. is one of the world's largest largest business-to-business distributors of equipment, component parts, and s
cestrela7 [59]

Answer:

Merchant wholesaler

Explanation:

A merchant wholesaler is a business owner that specializes in purchasing goods in large quantities and then sell to other retailers and wholesalers.

Since they purchase their products in large quantities, they have different warehouses in their acquisition. These warehouses are used to store the products.

Merchant wholesalers are very vital in the chain of distribution as they facilitate the smooth movement of goods which takes places between the producers and the retailers.

In the scenario described above, W.W. Grainger is an example of a merchant wholesaler.

6 0
3 years ago
Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $3 per share and has announced that it wil
Anni [7]

Answer:

If you require a return of 9.7 percent on the company’s stock, you will pay $47.61 for a share today .

Explanation:

Price today = Present Value of Dividends

Present Value of Dividends :  

Year                Dividend             Discounting Factor(9.7%)

0                 3.0000  

1                    8.00                 0.9115770282588880

2                    13.00                 0.8309726784493050

3                     18.00                  0.7574956047851460

4                     23.00                  0.6905155923292130  

year                                     Present Value(Dividend* Discounting factor)

0

1                                                                         7.2926162260711000

2                                                                        10.8026448198410000

3                                                                        13.6349208861326000

4                                                                        15.8818586235719000

Present Value of Dividends                            47.612040555616600

Therefore, If you require a return of 9.7 percent on the company’s stock, you will pay $47.61 for a share today .

3 0
3 years ago
An opportunity cost is the a. monetary price paid for a good or service. b. cost of finding the lowest price for a product. c. l
Bess [88]

Answer:

The opportunity cost is e. cost of a purchase or decision as measured by what is given up.

Explanation:

The opportunity cost can be defined as the cost of giving up the benefits associated with the next best alternative that is given up. It is also referred to as the loss of potential gain that is given up when one option is chosen over the other.

For example, If you have a choice of working at a company for salary of $10000 per year or starting your own business that is expected to earn $15000 per year, the opportunity cost of choosing to start your own business is the $10000 per year from the job that is given up.

6 0
3 years ago
Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, wha
Korvikt [17]

Answer:

1,030

Explanation:

Calculation for what is the exponential smoothing forecast value

Exponential smoothing forecast value = 1,000 + 0.3 x (1,100-1,000)

Exponential smoothing forecast value = 1,000 + 0.3 x (100)

Exponential smoothing forecast value = 1,000 + 30

Exponential smoothing forecast value= 1,030

Therefore the exponential smoothing forecast value will be 1,030

5 0
3 years ago
A fashion company anticipates making 1000 dresses in six months. at the end of three months, the company has made 250 dresses. i
Misha Larkins [42]
The answer is A. 25%.
3 0
3 years ago
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