Answer:
a. No, because Shelby made a mistake about the dog's value, not a mistake about a material fact.
Explanation:
Peggy made an offer to sell the dog for $800, they didn't discuss the dog's ancestry and Shelby wrongly assumed the dog was from champion lines and agreed to buy the dog for $800.
Based on further investigations, she discovered the dog was worth just $200.
She cannot rescind the contract because she wrongly assumed the dog's value not an error about à material fact. Peggy sold the dog at her own rates and Shelby bought the dog while wrongly assuming the value, so she cannot cancel the contract based on that.
Answer: B. $5,000 inventory, $0 accounts receivable
Explanation:
Daniel's basis in JRD is $21,000
Inventory fair value is $16,000
$21,000 - $16,000 = $5,000
Accounts receivable inside basis is $0.
Inside basis is basically each partner's tax basis in the partnership.
Answer:
variable markup % = 60%
Explanation:
total units sold 22,000
total costs associated with selling the 22,000 units:
variable production costs $18 x 22,000 = $396,000
variable S&A costs $13 x 22,000 = $286,000
fixed overhead = $20,500
fixed S&A = $36,700
total costs = $739,200
total cost per unit = $33.60
selling price = $33.60 + $16 = $49.60
markup percentage = [(sales price - unit cost) / unit cost] x 100
the total markup % = [49.60 - 33.60) / 33.60] x 100 = 47.62%
but since we are going to calculate the markup percentage solely based on variable costs, then:
variable cost per unit = $31
selling price = $49.60
the variable markup % = [49.60 - 31) / 31] x 100 = 60%
Answer:
$73,500 is the revenue TopChop will recognize for the arrangement with Carlos.
Explanation:
Revenue is calculated as follows.
= amount received + Use of name
= $56,000 + $35,000 × (1÷2)
= $73,500
New franchise fee can be immediately recognised as income.
Answer:
a. shortage at the former equilibrium interest rate. This shortage would lead to a rise in the interest rate.
Explanation:
The equilibrium in the market for loanable funds is achieved when the quantities of loans that borrowers want are the same as the quantity of savings that savers provide. The interest rate adjusts to make these equal.
