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hjlf
2 years ago
6

Grady exchanges qualified property, basis of $21,833 and fair market value of $26,200, for 60% of the stock of Eadie Corporation

. The other 40% of the stock is owned by Pedro, who acquired it five years ago. Calculate Grady's current income, gain, or loss and the basis he takes in his shares of Eadie stock as a result of this transaction.
Business
1 answer:
Svetach [21]2 years ago
3 0

Answer:

$26,200

Explanation:

Current gain = Fair market value of the property - Basis of qualified property = $26,200 - $21,833 = $4367. Thus, the amount of Grady current gain is $4,367

We now determine the basis that Gredy takes for the share of Eadie stock

Basis = Original basis of qualified property + Current gain

Basis = $21,833 + $4,367

Basis = $26,200

Thus,  basis that Gredy takes for the share of Eadie stock is $26,200

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Weiss Company purchased two identical inventory items. The first purchase cost $30 and the second cost $32. When the Company sol
zhuklara [117]

Answer:

a) FIFO

Explanation:

FIFO means first in, first out. It is an inventory system where the first purchased inventory is the first to be sold . The cost of goods sold is $30 which is equal to the price of the first purchased inventory . Therefore, the FIFO inventory system was used.

LIFO means last in, first out. It is an inventory system where the last purchased inventory is the first to be sold.

Weighted average is when the weighted price of inventory is used as the cost of goods sold.

I hope my answer helps you.

3 0
3 years ago
You are an economic advisor to the president. You observe a decrease in gross investment. Assume the economy was operating at th
melomori [17]

Answer:

a. Increase in Net Exports, Increase in AD, real GDP will stay same

b. Excess Demand

c. Appropriate Contractionary Fiscal Policy : decrease tax & or increase government expenditure

d. Actions smooth business cycle by brining actual real GDP towards full employment

Explanation:

Aggregate Demand is the total value of goods & services all the sectors of an economy are planning to buy during a given period of time

Aggregate Demand [AD] = Consumption [C] + Investment [I] + Government Expenditure [G] + Net Exports [NX = Exports (X) - Imports (M)]

Aggregate Demand > Aggregate Supply at full employment level is Excess Demand. Aggregate Demand < Aggregate Supply at full employment level is Deficit Demand

Decrease in Investment leads to fall in Aggregate Demand. It creates Deficit Demand & decreases real GDP. It can be corrected through demand expansionary fiscal policy of decreasing taxes & increasing govt. expenditure.

Increase in exports leads to increase in net exports & in turn increase in aggregate demand. This causes Excess demand problem & real GDP will remain same (economy already at full equilibrium, GDP cant be increased more). Appropriate Fiscal Policy [Contractionary Fiscal Policy] includes decreasing taxes & or increasing govt. purchase.

These actions will smooth out business cycle by bringing actual real GDP back to full employment level.

5 0
3 years ago
List two ways the decision making matrix model is used to consider risk
Julli [10]

<em>Answer:</em>

1-Likelihood

2- Outcome

<em>Explanation:</em>

<u>1-Likelihood :</u> It is a mechanism for measuring the level of risk in the matrix model. A risk assessment is effective for risk prevention and guidance for decision making.

<u>2- Outcome:</u> It is a tool that assists in decision making based on measurement of results. Through the results it is possible to measure the strengths and weaknesses of a given period and outline strategies to correct the failures.

8 0
3 years ago
Driehaus Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals.
makvit [3.9K]

Answer:

A. The crossover point in units is 9000 units

B. Alternate B or Proposal B should be chosen

Explanation:

a.

Let x be the number of units.

The profit equation for option 1 can be written as (20-11)x - 62000

The profit equation for option 2 can be written as (20-14)x - 35000

The crossover point is where both optons yield equal profit thus equation 1 = equation 2.

(20-11)x - 62000 = (20-14)x - 35000

9x - 62000 = 6x - 35000

9x - 6x = 62000 - 35000

3x = 27000

x = 27000 / 3

x = 9000 units

b.

At 8300units,

Profit from proposal A is = 9(8300) - 62000 = 12700

Profit from proposal B is = 6(8300) - 35000 = 14800

Thus option B is more profitable at this unit.

7 0
3 years ago
an investment property generates a cash flow of $420,000 and appraises for $8,800,000. what is the owner’s return on investment?
Licemer1 [7]

The owner’s return on investment  is $4,583,000

Investment definition is an asset received or invested in to build wealth and keep money from the tough earned earnings or appreciation. funding that means is generally to reap a further source of profits or benefit take advantage of the funding over a selected period of time.

Making an investment is a powerful way to put your money to work and probably build wealth. smart investing may additionally allow your money to outpace inflation and boom in value. The greater growth potential of investing is primarily because of the power of compounding and the chance-go-back tradeoff.

Within the maximum sincere feel, investing works when you buy an asset at a low rate and promote it at a higher price. This sort of go back to your investment is called a capital benefit. earning returns with the aid of selling assets for a profit—or figuring out your capital profits—is one way to make cash investing.

$550,000 ÷ 0.12 = $4,583,000

Learn more about investment here brainly.com/question/25300925

#SPJ4

3 0
1 year ago
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