Answer:
b. $10,000
Explanation:
Calculation to determine Eileen recognizes gain on the transfer
Recognized gain=Basis -Fair market value
Recognized gain=$190,000 -$180,000
Recognized gain=$10,000 gain
Therefore Eileen recognizes gain on the transfer of:$10,000
Answer: True
Explanation: according to the question, the dollar value of inventory using LIFO is $20,000. The price level foe the period is 1.25. The closing inventory using FIFO is $35,000.
Therefore the closing inventory using LIFO = $35,000/1.25= $28,000
Answer:
= $ 650,000.
Explanation:
<em>Gross profit </em><em>is the profit made after subtracting the cost of the goods were sold (cost of inputs) to generate the revenue.</em>
Gross profit = Revenue - cost of sales
Cost of sales = opening inventory + production cost - closing inventory
Cost of sales = 50,000 + 2,200,000 - 150,000
= $2,100,000.
Gross profit = $2,750,000 - $2,100,000.
= $ 650,000.
So you know how to get the most profit from sales
Answer:
$2.50
Explanation:
The most you would be willing to pay to have a freshly washed car before going out on a date is $6
The smallest amount you would be willing to wash another person's car is $3.50
Therefore if you are going out and need to wash the car, the economic surplus that would be received from washing it can be calculated as follows
= $6 - $3.50
= $2.50
Hence the economic surplus that would be received from washing the car is $2.50
