Answer:
to attract customers or other buissness man that might want to invest
Answer: A. $25,000 B. $90,000 C. $25,000
Explanation:
A.
Land $100,000
Stock 25,000
Amount realized 125,000
Less: Adjusted basis (90000)
Recognized gain $35,000
When you receive book in an exchange which is similar or like kind, then the recognized gain is the lesser of either the boot or recognized gain. Here the lesser is the boot received which is $25,000. Therefore, recognized gain is $25,000
B.
Because the recognized gain is taken as $25,000 rather than $35,000. The $10,000 amount is considered as postponed gain. Hence,
$100,000 (land worth) - $10,000 (postponed gain) = $90,000 - basis of new land.
C.
The worth of the stock is the basis in the stock received. Which is $25,000
A. He is experiencing negative self talk. He is trying to logically predict the outcome of the situation.
If we are given with the level of saving as a function of level of disposable income:
c = 500 + 0.8 d
where d is the disposable income and it is equal to 1000. Solving for c:
c = 500 + 0.8 (1000)
c = $1300