Answer:
What is Bob’s basis in the warehouse and in the land?
- warehouse basis = $53,571
- land basis = $71,429
Explanation:
since the total appraisal value was $75,000 + $100,000 = $175,000, we must allocate the basis using a coefficient = $125,000 / $175,000 = 0.714285
- warehouse basis = appraised value x coefficient = $75,000 x 0.714285 = $53,571
- land basis = appraised value x coefficient = $100,000 x 0.714285 = $71,429
- total = $53,571 + $71,429 = $125,000 (total purchase price)
Since the transaction price was lower than the appraised value, we must adjust the basis for both the land and the warehouse in the same proportion.
Answer:
456 Gallons
Explanation:
The Optimal order quantity can be found using the following formula:
Economic Order Quantity = Sqrt (2* Annual Demand * Ordering cost per order / Holding cost per unit per year)
EOQ= SquareRoot (2 * 50000 Gallons * $150 per order/ 0.48 Holding costs)
Economic Order Quantity = 456 Gallons
Answer:
----Either similar or identical products --------Difficult entry
----Mutual interdependence
Explanation: An Oligopolistic market is a market characterized by few sellers of large firms who sell either similar or differentiated products. Here, Each firm is mutually interdependent as any action from any firms influences the actions of the rest of the competing firms , therefore decisions are made using strategic planning and consideration as competing firms are ready to counter react to any change in any new market action.
Market entry is difficult Because of the already established customer base of the successful operating firms dominating the market.Also venturing into the market requires high capital, technology or additional government licences. Examples of Oligopolistic firms are oil and gas firms, airlines, mass media etc
