Answer:
c. Optimum replacement interval (ORI)
Explanation:
Optimum replacement interval used to estimate the most cost effective time to replace an asset on the basis of their replacement cost.
There needs to be a balance between the replacement cost and the value that is being lost by changing the asset.
The useful value must be low to justify replacement cost.
For example if the cost of maintaining a machine has increased a lot as a result of wear and tear, it will be more cost effective to make a replacement in order to minimise cost and increase efficiency
Flash's basis in the S corporation after the distribution will be equal to $27000.
Within any organization or firm, there are multiple shareholders of the firm. Each shareholder has a share in the company's profit and even has the say whenever any important decision has to be taken. Flash is also a shareholder in S corporation. Now, at first Flash increases his basis by 50% of the gain on property distribution by S corporation. This is expressed as
Increased basis = (Capital worth - Basis to S corporation) × 50%
Increased basis = ($40000 - $10000) × 0.5
Increased basis = $15000
Now, Flash reduces the basis as
Reduced basis = Basis before distribution + Increased basis - Capital worth
Reduced basis = $52000 + $15000 - $40000
Reduced basis = $27000
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A dole proprietor(the answer)(you’re welcome)
True...because if you follow proper guidelines it could prevent misunderstanding and allow professionalism and effective use take place instead.
