Answer:
$150000
Explanation:
Solution
The first step to take is to calculate the recognized gain.
Given that:
the outside basis = $100,000
Cash =$10,000
The fair market value of the boot manufacturing company is = $260,000
Now,
The Recognized gain is stated as follows:
The Fair Market Value - (Outside Basis + Cash)
= $260000 - ($100000 + $10000)
= $260000 - $110000
= $150000
Therefore her calculated gain is $150000
Answer:
The firm will continue to produce in the short run.
Explanation:
Given the number of units produced by Acme Dynamite = 250 units.
The variable cost of producing the 250 units = $2000
The fixed cost = $500
The selling price = $25 per unit.
The new price after the fall in price = $10
Total revenue from the selling of 250 units = 250 × 10 = $2500
Since the revenue received is covering the variable cost and fixed cost. Thus, the firm will produce or continue to produce in the short run.
Answer and Explanation:
The balance sheet is shown below:-
The computation of note payable is below:-
Notes Payable = $1,198,000 - $649,600
= $548,400
Total notes payable by the company are$1,198,000, of which $649,600 is common stock issue and $548,400 is cash liquidate.
Windsor Company
Partial Balance sheet
December 31, 2020
Particulars Amount
Current Liabilities:
Notes Payable $548,400
Long term Debt:
Notes Payable $649,600
Answer:
It means that sides market for NFL football betting which is semi strong form of efficient market hypothesis cannot utilize technical or fundamental analysis to earn higher gains since stocks have already adjusted with latest football information release.
Explanation:
Semi strong form of market is an aspect of Efficient Market Hypothesis which provides that security prices adjust rapidly to available public information.
It states that changes in stock prices is an outcome of release of new public information. Based on the information that is made available, investors actions are based, which ultimately leads to changes in prices.
Semi strong form follows the belief that since all public information is used while arriving at a stock's current price, investors cannot utilize technical or fundamental analysis to earn higher returns.
Answer:
Option (D) is correct.
Explanation:
Asymmetric information occurs in a situation in which one of the two parties involved in a particular transaction have more information than the other party. This problem mostly occurs in a health insurance market where the a person to be insured have more information about his health than the insurance company.
Asymmetric information will result in two problems are as follows:
(i) Adverse selection
(ii) Moral hazard
