Answer:
$9,240 loss recognized
$43,000 basis
Explanation:
Tax basis of share purchase is the cost of share together with any tax related to this purchase.
Mr. Slake's loss recognized on the February 13 sale is $9,240 = total cost of 1,580 share purchased in the past - total amount collected from sales of these share = $49,240 - $40,000 = $9,240
His tax basis in purchase of 1,600 shares on Mar 2 is $43,000, the total cost he paid to acquire 1,600 shares
The answer to the question above is letter A. The most attractive trade-off as the result of a decision is called an opportunity cost. Trade-off is a technique of reducing or forgoing the desirable outcome in exchange for increasing or obtaining other desirable outcomes in order maximize the total return.
Answer:
$2,777
Explanation:
For computing the annual ordering cost, first we have to determine the economic order quantity which is shown below:
= 46 units
The carrying cost is
= $675 × 18%
= $121.50
Now the annual ordering cost is
= Annual demand ÷ Economic order quantity × ordering cost per order
= 1,750 ÷ 46 × $73
= $2,777
Hence, the annual ordering cost is $2,777