Mercedes owns a 30% interest in Magenta Partnership (basis of $52,000) which she sells to Calvin for $65,000 . Mercedes' recognized gain of $13,000 will be classified as capital gain
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: If the entity has unrealized receivables or substantially appreciated inventory, some or all of the recognized gain may be classified as ordinary income under ยง 751.
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Under free trade, Sweden enjoys all of the gains from trade with Holland if Sweden
a. trades at Holland's rate of transformation. b. trades at Sweden's rate of transformation. c. specializes completely in the production of its export good. d. specializes partially in the production of its export good.
Inscribe, Inc. manufactures and sells pens for $7 each. Cubby Corp. has offered Inscribe, Inc. $4 per pen for a one-time order of 3600 pens. The total manufacturing cost per pen, using absorption costing, is $1 per unit and consists of variable costs of $0.85 per pen and fixed overhead costs of $0.15 per pen. Assume that Inscribe, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special pricing order?
A) increase of $10,800 B) decrease of $10,800 C) increase of $11,340 D) decrease of $11,340
Which of the following is a lean initiative that is consistent with sustainability practices?
a. increase in use of raw materials b. avoiding overproduction c. increased frequency of quality inspections d. employing more quality control personnel
Which of the following financial intermediaries operates as a not-for-profit organization??
A. ?Commercial bank B. ?Credit union C. ?Thrift institution D. ?Mutual fund E. ?Whole-life insurance company