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posledela
3 years ago
13

Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $49,500. Koch originally purchased Machine 1

for $76,000, and Machine 1's adjusted basis was $40,500 at the time of the exchange. Machine 2's seller purchased it for $64,500 and Machine 2's adjusted basis was $55,500 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange
Business
1 answer:
Shalnov [3]3 years ago
6 0

Answer:

$40,500.

Explanation:

Calculation for Koch's adjusted basis in machine 2 after the exchange

Based on the information given we were told that Machine 1's had adjusted basis of the amount of $40,500 at the time of the exchange which means that Koch's adjusted basis in machine 2 after the exchange will the amount of $40,500 which is Machine 1's adjusted basis .

Therefore Koch's adjusted basis in machine 2 after the exchange will be $40,500

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if a company calculated the final sales value of its various products that are manufactured and then subtracts out identified se
Colt1911 [192]

Answer:

The allocation method use if a company calculated the final sales value of its various products that are manufactured and then subtracts out identified separable costs is <u>Direct Allocation Method</u>

Explanation:

The direct method allocates costs directly to the producing departments based on relative use.

This method subtracts reciprocal services that incur additional costs  For example, this method would ignore service provided by the data processing department to other support departments, such as personnel or maintenance.

Final sales value of its various products and services that are manufactured and the costs form a portion of the overhead cost of production, which is then allocated to inventory and the cost of goods sold.

This method provides a better picture of how costs are incurred, but requires more accounting effort. It also tends to delay the recognition of expenses until a later period, when some portion of the produced goods are sold.

Identified separable costs are then subtracted from final sales value.

4 0
3 years ago
Avocado Incorporated just paid a dividend of $3. An analyst expects this dividend to grow at a rate of 12% for the next 3 years.
yuradex [85]

Answer:

The most you should pay for this stock is 126.89

Explanation:

The dividend in years 1 – 3 will grow at 12% and then at 5% forever.  

We had to get the PV for the dividends in years 1-3 (year 3 also includes the estimated future value of the stock).

We used our calculators to find the PV of each year at the 8% discount rate.  Finally we will add them all together to get the final answer.

We find the future dividends using g =12%

Dividend in year 0 --->

Dividend in year 1 ---> 3.36

Dividend in year 2 ---> 3.76

Dividend in year 3 ---> 4.21

Dividend in year 4 ---> 4.43

Now we will calculate the present value of the future dividends using r = 8%

Stock Value assuming constant growth rate  = 147.52 --(a)

PV in year 1 ---> 3.11

PV in year 2 ---> 3.23

PV in year 3 ---> 120.45  --(discounting (a))

= 120.45 + 3.23 + 3.11

= 126.89

4 0
3 years ago
Estimate the cost of electricity used (at $.08/kwh) for 30 days for ten 100-w bulbs for 6 hours per day.
emmainna [20.7K]
<span>(30 * (10*100*6) * .08 ) / 1000 = Cost of electricity is $14.40</span>
4 0
3 years ago
Both the Onus ferry operator in the monopoly market and each of the Yuri ferry operators in the perfectly competitive market wil
defon

Answer:

The overview of the given statement is described in the explanation segment below.

Explanation:

<u>Monopoly Market: </u>

  • The demand curve or market price towards the firm was indeed sloping downhill. MR is also below P and AR.
  • Therefore, when earnings are maximized, whereby MR = MC has been used. Price is therefore above MR (Marginal Revenue).

<u>Perfectly Competitive Market: </u>

  • The  price shall be calculated whenever market forces are equivalent.
  • The firm seems to be the fixed price and therefore the individual company market price becomes horizontal.

Thus,

⇒  AR=P =MR

Hence,

⇒  P = MR

6 0
3 years ago
1. Fundamentals of consumer choice Suppose that a glass of acai berry juice at Beth's gym cafeteria costs as much as a can of so
djyliett [7]

Answer:

The correct answer is letter "D": As juice and soda cost the same, Ana buys the drink that she expects will yield her the greatest benefit.

Explanation:

Consumer equilibrium refers to the point where consumer gains maximum satisfaction from consuming a determined number of goods or services which makes the consumer reluctant to change his or her consumption pattern. For this to be possible, the products consumed by individuals must provide a higher yield than the forgone products. Usually, there no other factors influencing consumers' decisions implying the price levels of those products are the same.

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4 years ago
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