Answer:
C
Explanation:
Greater than 0.8 but less than or equal to 0.9
Answer:
$210,000
Explanation:
The computation of the external price is shown below
Making cost = buying cost
$120,000 + $25,000 + $45,000 + $30,000) = external price + Unavoidable fixed cost (30,000-20,000)
$220,000 = External price + $10,000
So,
External price = 210,000
Hence, the same is to be considered
Therefore the external price is $210,000
Answer:
d) may be shorter or longer than monetary policy lags.
Explanation:
Remember, the term policy lags refers generally to the lag or length of time between the time when an economic problem is discovered, like increased unemployment, and the extent to which policy solves the economic problem.
From a general perspective this policy lags in fiscal policy may be shorter or longer than monetary policy lags depending on the political and economic environment of the country.
Answer and Explanation:
The computation of the amount and character of the gain recorded is shown below:
1. Recognized gain would be
= Sales - the cost of the property - recovery cost
= $1,200,000 - $1,000,000 - $411,750
= $611,750
2. Now as per the section 1245 the potential recapture is $411,750
3. Now extra section 291 ordinary income in the case when it is a corporation
= $411,750 ×20%
= $82,350
4. And finally $82,350 would be considered as an ordinary income under section 291 while the remaining balance i.e.
= $611,750 - $82,350
= $529,400
This amount would be considered as a gain under section 1231
