Appropriate channels selected is NOT a reason why a new product might fail.
Answer:
D) $8,000 inventory, $0 land
Explanation:
Tyson's basis in the distributed inventory and land will be $8,000 inventory, $0 land
Because he initially first allocates his outside basis to the assets distributed which is in an amount that is equal to KT's basis which is ($20,000 cash and $8,000 land).
Therefore this results in a required decrease of $0 due to the basis he reduces in the land by the required decrease, which thereby results in a basis of $0 to the land.
Answer:
A.) 33,000
Explanation:
The computation of the gross profit is as follows;
But before that following calculations need to be done
Percentage of completion = Cost incurred in 2020 ÷ Total cost
where,
Total cost = Cost incurred + estimated cost
= $180,000 + $200,000
= $380,000
Now
Percentage of completion is
= $180,000 ÷ $380,000
= 47.368%
Now
Revenue to be recognized in year 2020 is
= contract revenue × percentage of completion
= $450,000 × 47.368%
= $213,156
So,
Gross profit = Revenue - Cost
= $213,156 - $180,000
= $33,156
= $33,000
