A joint venture is an attractive way for a company to enter a new industry when a firm is missing some essential skills or capabilities or resources and needs a partner to supply the missing expertise and competencies or fill the resource gaps.
- The joint venture approach to entering a new market is effective when the target company lacks the necessary relationships, resources, and skills to operate well in the new industry.
- Joint venture is a combination of two or more parties that seek the development of a single enterprise or project for profit, sharing the risks associated with its development. The parties to the joint venture must be at least a combination of two natural persons or entities.
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Answer:
Realized gain = $238,640
Recognized gain = $212,120
Explanation:
The computation of realized gain and recognized gain is shown below:-
Realized gain = Cash received - Adjusted basis of partnership
= $300,520 - $61,880
= $238,640
So, for computing the realized gain we simply deduct the adjusted basis of partnership from cash received.
Recognized gain = Cash received - Adjusted basis of Heather
= $300,520 - $88,400
= $212,120
and for computing the recognized gain we simply deduct the adjusted basis of Heather from cash received.
Answer:
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Answer:
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Explanation: