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stepan [7]
3 years ago
15

Erica transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for all of Robin's sto

ck, worth $300,000, and a 10-year note. The note was executed by Robin and made payable to Erica in the amount of $200,000. As a result of the transfer:
Business
1 answer:
valentinak56 [21]3 years ago
5 0

Answer:

Robin Corporation has a basis of $300,000 in the land.

Explanation:

Options are <em>"a. Erica does not recognize gain.  b.  Erica recognizes gain of $400,000.  c.  Robin Corporation has a basis of $100,000 in the land.  d. Robin Corporation has a basis of $300,000 in the land.  e.  None of the above."</em>

<em />

Erica has a recognized gain of $200,000 which is the amount made payable to her through her receipt of the securities in Robin Corporation. The basis of the land to Robin would be equals to the basis Erica has in the land, $100,000 plus gain recognized by Erica $200,000 or $300,000.

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4. Which organization serves as the principal operations center for the Department of Homeland Security? A. Disaster Response Ce
Svetllana [295]

Answer:

B. National Operations Center

Explanation:

The National Operations Center serves as the principal operations center for the Department of Homeland Security which

provide decision support and enable the Secretary’s execution of obligations across the homeland security enterprise by promoting situational awareness and share information.

7 0
3 years ago
Suppose the production function in medieval Europe is Y 5 K 0.5L0.5, where K is the amount of land and L is the amount of labor.
Sonbull [250]

Answer:

a) Y = 500

b) Wages: 2.5

   Rental price: 2.5

   

c) labor Share of output: 0.370511713 = 37.05%

Explanation:

Y = 4K^{0.5} \times L^{0.5}

if K = 100 and L = 100

Y = 5(100)^{0.5} \times (100)^{0.5}

Y = 50 \times 10

Y = 500

wages: marginal product of labor = value of an extra unit of labor

dY/dL (slope of the income function considering K constant while L variable)

ax^b = bax^{b-1}

Y = 5K^{0.5} \times L^{0.5}

Y' = 5K^{0.5} \times 0.5 L^{-0.5}

Y' = 2.5K^{0.5} \times L^{-0.5}

Y' = 2.5(\frac{K}{L})^{0.5}

With K = 100 and L = 100

Y' = 2.5(\frac{(100)}{(100)})^{0.5}

Y' = 2.5

rental: marginal product of land = value of an extra unit of land

dY/dK (slope of the income function considering K variable while L constant)

Y = 5K^{0.5} \times L^{0.5}

Y' = 2.5K^{-0.5} \times L^{0.5}

Y' = 2.5(\frac{L}{K})^{0.5}

L = 100 K = 100

Y' = 2.5(\frac{100}{100})^{0.5}

Y' = 2.5

c) we use logarithmic properties:

Y = 50 \times 10

log500 = log(50 \times 10)

log500 = log50 + log10

50 was the land while 10 the labor

2.698970004 = 1.698970004 + 1

share of output to labor: 1/2.698970004  = 0.370511713

5 0
3 years ago
What is total taxable income
Dimas [21]

Taxable income, generally speaking, is the gross income of an individual or corporation, less any allowable tax deductions. Your taxable income is, in other words, the amount of your income that is subject to income tax.


4 0
3 years ago
Which of these is not a primary concern of socially responsible consumers?
Klio2033 [76]
C i belive im pretty sure sure.
8 0
3 years ago
Read 2 more answers
Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.6
storchak [24]

Answer:

b. 18,602 units.

Explanation:

First, we need to use last year's information to determine last year's fixed costs.

Price (P1) = $7.68

Variable costs (VC1) = $2.25

Units sold to break-even (n1) = 21,800

At the break-even point, net income is zero and the fixed cost can be found by:

N=0 = n_1*(P_1-VC_1) -FC_1\\0=21,800*(\$7.68-\$2.25) - FC_1\\FC = \$118,374

With information from last, information for the current year can be determined:

Price (P2) = $10.00

Variable costs (VC2) = $2.25 x 1.3333 = $3.00

Fixed cost (FC2) = $118,374 x 1.10 = $130,211.4

The number of units required to break even is:

N=0 = n_2*(P_2-VC_2) -FC_2\\0=n_2*(\$10-\$3) - \$130,211.4\\n_2 = 18,601.63\ units

Rounding up to the nearest whole unit, Dorcan Corporation must sell 18,602 units to break-even.

7 0
3 years ago
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