Assume Andy’s and Helen’s behavior at home is partially regulated by their condominium
association, which acts as a small "voluntary government" for its residents.
Per the Coase Theorem, how might the condominium association assign property
rights across Andy and Helen so that a socially optimal level of radio playing is
realized? Please explain how a particular assignment of rights would work towards
achieving this goal. 5pt
Your answer from above should say something about the market for externalities that
arises after an assignment of property rights. Use this answer’s logic, along with the
information provided in the questions above, to model the market for externalities.
How many hours of externalities are traded in this market when at equilibrium? Is
the quantity socially optimal? Please provide a graph with your answer. 5pt
Instead of assigning property rights, could the association use corrective "taxes" or
"subsidies" to achieve a socially optimal level of radio playing? Explain. 5pt

Answers

Answer 1

To achieve a socially optimal level of radio playing between Andy and Helen, the condominium association can assign property rights to one of them. Let's assume the property rights are assigned to Andy. With property rights, Andy has the exclusive right to decide the level of radio playing in their shared space.

By assigning property rights to Andy, he now has the incentive to consider the costs and benefits of his radio playing. If the cost of playing the radio exceeds the benefit he derives from it, Andy will choose to reduce his radio playing to a socially acceptable level. On the other hand, if the benefit outweighs the cost, he will continue playing the radio.

The assignment of property rights creates a market for externalities between Andy and Helen. Andy, as the owner of the property right, has the ability to generate external costs or benefits to Helen through his radio playing. The market for externalities arises as Andy and Helen negotiate and potentially trade off the externality.

In the market for externalities, the quantity of externalities traded will depend on the willingness to pay and willingness to accept between Andy and Helen. The equilibrium quantity of externalities traded will be where the marginal benefit of the externality to Helen is equal to the marginal cost of the externality to Andy.

The graph representing the market for externalities would show the quantity of externalities traded on the x-axis and the willingness to pay and willingness to accept on the y-axis. The equilibrium quantity of externalities traded represents the efficient level where the external benefit to Helen equals the external cost to Andy. Whether this quantity is socially optimal or not depends on the relative magnitudes of the costs and benefits and the broader social welfare considerations.

Instead of assigning property rights, the condominium association could use corrective taxes or subsidies to achieve a socially optimal level of radio playing. The association can impose a tax on Andy for every hour of radio playing or provide a subsidy for reducing radio playing. By adjusting the tax or subsidy amount, the association can internalize the external costs or benefits associated with radio playing and incentivize Andy to choose the socially optimal level of radio playing.

The use of corrective taxes or subsidies aims to align the private costs and benefits with the social costs and benefits. The association can set the tax at a level that reflects the external cost imposed by radio playing, discouraging excessive radio playing. Conversely, a subsidy can be provided to Andy for reducing his radio playing, effectively compensating him for the external benefit that Helen receives from the reduced noise.

By utilizing corrective taxes or subsidies, the association can internalize the externalities and guide behavior towards the socially optimal level of radio playing.

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Related Questions

Assume that the quotes given below are from a newspaper. "petrol prices fall for the second time during this year", "price of video games is set to fall again" "price of foreign holidays increases" Explain whether the producers of the relevant companies i) Are likely to raise or cut back on production as a result of these news items. Explain your reasons. ii) What is the term used for this rise or cut down of production?

please help ASAP​

Answers

Answer:

which subject

Explanation:

¯\_ʘ‿ʘ_/¯¯\_ʘ‿ʘ_/¯¯\_ʘ‿ʘ_/¯

Which subject is it


You recently got a new job in a busy doctor's office. There are four other workers who perform the same
tasks as you. When you were trained, you felt confident about your ability to do the work correctly.
However, now you are not sure how to complete some of the tasks.
Read the following actions and decide which is the BEST way to handle the situation and which is the
WORST way to handle the situation.
1. Ask a co-worker to help you with the tasks you are not sure how to do.
2. Watch your co-workers do the tasks you are not sure how to do and copy their actions exactly.
3. Ignore the tasks you are not sure how to do until someone notices.
4 Ask your supervisor for additional training on the tale vor

Answers

Going to be answer 3

Ignore the tasks you are not sure how to do until someone notices which is the worst way to handle the situation. The correct option C. Ignoring behavior that is harmful to the student or others is never a suitable course of action e.g., aggressive behavior, or bullying. These actions demand the application of a different tactic.

Why is planned to ignore harmfully?

Ignoring assumes that a child's apparent behaviors accurately represent what they are trying to accomplish. In fact, many kids aren't able to communicate their inner thoughts through coordinated movement and/or language. Ignoring oversimplifies the child's actions without making an effort to understand their underlying emotions and thoughts.

You recently got a new job in a busy doctor's office. There are four other workers who perform the same tasks as you. When you were trained, you felt confident about your ability to do the work correctly. However, now you are not sure how to complete some of the tasks. Ignore the tasks you are not sure how to do until someone notices which is the worst way to handle the situation.

Thus, the ideal selection is option C.

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(T/F) business strategy outlines how the owner plans to achieve business objectives in the face of a competitive environment.

Answers

True, business strategy outlines how the owner plans to achieve business objectives in the face of a competitive environment.

What is business strategy?

Business strategy is a long-term plan of action developed by a firm's top-level management to achieve specific business goals and objectives. It's a high-level roadmap that outlines the organization's direction and sets its priorities. It encompasses a broad range of activities, including product development, marketing strategy, pricing strategy, and distribution strategy, among others.In essence, business strategy outlines how the owner plans to achieve business objectives in the face of a competitive environment. To accomplish this, firms must create a competitive advantage that will allow them to stand out from the competition and attract more customers. This might include offering high-quality products at a lower price than rivals, providing exceptional customer service, or using cutting-edge technology to develop new and innovative products.

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How is the focus group discussion (POD) used as a method of generating ideas?

Answers

Answer:

In a focus group, a moderator leads a group of people through an open, in-depth discussion rather than simply asking questions to solicit participant response. For a new product area, the moderator focuses the group discussion in either a directive or a nondirective manner.

The Greenbaum family agreed to pay for 3 months of an online TV service in exchange for a $5 credit on the bill each month. If the Greenbaums spend a total of $11. 85 on the service over the 3 months, what is the normal price of one month of online TV service? $5. 00 $6. 85 $8. 95 $30. 55.

Answers

The correct statement is that the normal price of the online TV service is $8.95 if the Greenbaum family spends $11.85 over the bill paid each month. So, the correct option is C.

The computation of the normal price can be calculated with the use of given information regarding the credit price monthly and adding such amount by dividing the quarterly spends by 3.

Computation of monthly payment.

The calculation of the TV service cost for each month can be calculated by applying the given information. If the cost of 3 months was $11.85, then one month cost will be,

\(\rm Monthly\ Payment= \dfrac{\$11.85}{3}\\ \\ \rm Monthly\ Payment= \$3.95\)

But we know that there is a credit of $5 on each month's bill, and therefore the monthly normal price will be calculated as,

\(\rm Normal\ Price= \$(3.95+ 5)\\\\\rm Normal\ Price= \$8.95\)

Hence, the correct option is C that the normal cost of the online TV service with a credit of $5 each month will be at a monthly payment of $8.95

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A company operates two plants which manufacture the same item and whose total cost functions are C1=6+0.03q^2 (q1) andC2=4.2+0.04q^2 (q2), where q1 and q2 are the quantities produced by each plant. The total quantity demanded, q=q1+q2 , is related to the price, p , by p=60−0.04q. How much should each plant produce in order to maximize the company's profit?

Answers

The company's goal is to maximize its profits. To do this, it must produce the correct amount of each item from its two plants. The company should produce q1 and q2 such that the total quantity demanded, q, is equal to the total cost of production, C1+C2.

By substituting the cost functions into the demand equation, we can solve for the optimal quantity of each item produced by each plant. The optimal quantity is given by q1 = 28.75 and q2 = 31.25. This means that the company should produce 28.75 units of the product from Plant 1 and 31.25 units from Plant 2 in order to maximize its profits.

Therefore, by producing the optimal quantities, the company can maximize its profits by ensuring that its total cost of production is equal to the total demand for the product.

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Type 2 paragraphs disscusing the importance of "Sharpening the saw"

Answers

Answer:Sharpening the saw" is a term that refers to the importance of regularly investing time and effort in self-improvement and personal growth

Explanation: "Sharpening the saw" is a term that refers to the importance of regularly investing time and effort in self-improvement and personal growth. This means taking a step back from the daily grind and investing in activities that help you improve your physical, mental, and emotional well-being, as well as your skills and knowledge. The importance of sharpening the saw cannot be overstated. When you take time to work on yourself, you become more efficient and effective in everything you do. You're better equipped to handle stress and challenges, and you have a clearer sense of purpose and direction in life. This, in turn, can help you achieve greater success in your personal and professional life.

Sharpening the saw also helps prevent burnout and promotes overall well-being. When you're constantly focused on work or other obligations, it's easy to neglect your own needs and become overwhelmed. This can lead to stress, anxiety, and even physical health problems. By regularly investing time in activities that help you recharge and refresh, you'll be better equipped to handle the demands of daily life. This might include activities like exercise, meditation, learning new skills, or pursuing hobbies and interests. Ultimately, sharpening the saw is an investment in yourself that pays dividends in all areas of your life.

Stephen Covey coined the metaphor "sharpening the saw" to stress the importance of continuous self-improvement.

Individuals must engage in their growth both personally and professionally in order to reach their full potential, just as a saw must be sharpened to cut effectively. This entails regularly evolution and optimising one's skills, knowledge, and habits. Individuals can improve their productivity, creativity, and well-being by doing so.

Sharpening the saw is important in both personal and professional situations. In personal life, it helps the individual lead a fulfilling life by improving their physical, emotional, and spiritual well-being.

To summarise, honing the saw is an ongoing endeavor that requires dedication, commitment, and discipline. By having skills, it not only benefits individuals but also helps organisations achieve their goals.

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In a BIP problem, which of the following constraints would enforce a mutually exclusive relationship between project 1 and project 2?

Multiple Choice

x1 + x2 ≤ 1

x1 + x2 ≥ 1

x1 − x2 ≤ 1

x1 − x2 = 1

None of the answer choices is correct.

Answers

The correct answer is x1 + x2 ≤ 1. This constraint ensures that either project 1 or project 2 can be selected, but not both at the same time. If x1 = 1 (project 1 is selected), then x2 must be 0 (project 2 is not selected) and vice versa.

The other constraints do not enforce this mutually exclusive relationship between the two projects. x1 + x2 ≥ 1 allows both projects to be selected at the same time, x1 − x2 ≤ 1 allows for overlapping selection of both projects, and x1 − x2 = 1 only enforces a specific difference between the selection of project 1 and project 2.

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Mel suddenly finds an opportunity to sell boxed dinners. The new opportunity would require the use of the 30 percent unused capacity. The contribution margin from the dinners would amount to $3,000 annually. Required: a. If Mel decides to sell dinners, what are the total costs for both making and buying the cookies?

Answers

Answer:

$900

Explanation:

The computation of the total cost for both making and buying the cookies is given below:

But before that the variable cost per unit is

= (Cost of goods sold - fixed cost) ÷ (sales units)

= ($13,500 - $4,500) ÷ ($180,000 ÷ 6)

= $3

now the total cost is

= 300 × $3

= $900

Mel suddenly finds an opportunity to sell boxed dinners. The new opportunity would require the use of

Seed capital pays for which of the following?

A. Operating expenses for the first year of a new business
B. Expanding production and advertising budgets
C. Funding for research and development of a business idea
D. Competitive wages for high-tech workers​

Edit: It's C

Answers

Answer:

It's C !

Explanation:

Hope you have a good day!

Seed capital pays for: C. Funding for research and development of a business idea.

The seed capital pays for market research for initial steps of product development. For example, development of the prototype or paying for all operating expenses like legal costs.

Seed capital provides operating expenses for the entire process of business. Hence, A is incorrect.

It has no role directly in the expansion of production and advertising budgets. Hence, B is incorrect.

It has no role in decision of competitive wages for high tech workers. Hence, D is incorrect.

Hence, C is correct option.

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Wolfgang Kersten Mfg. Intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal X are​ $150,000, and for proposal​ Y, $170,000. The variable cost for X is​ $120. 00, and for​ Y, $100. 0. The revenue generated by each unit is​ $200. 0.

​a) If the expected volume is​ 28,500 units,



proposal X

proposal Y

with a total

profit=​$enter your response here

should be chosen ​(enter your response as a whole​ number).

​b) If the expected volume is​ 15,000 units,



proposal X

proposal Y

with a total

profit=​$enter your response here

should be chosen ​(enter your response as a whole​ number)

Answers

a) At an expected volume of 28,500 units, Proposal X should be chosen as it yields a total profit of $1,920,000. b) At an expected volume of 15,000 units, Proposal Y should be chosen as it yields a total profit of $1,670,000.

(a): To determine the total profit for each proposal, we calculate the revenue and subtract the total cost. Proposal X has fixed costs of $150,000, a variable cost of $120.00 per unit, and an expected volume of 28,500 units. The total cost for Proposal X is $1,920,000, resulting in the highest total profit.

(b): Using the same calculations, at an expected volume of 15,000 units, Proposal Y has a lower total cost compared to Proposal X, resulting in a higher total profit of $1,670,000.

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Which best compares and contrasts the teaching and training careers and the professional support careers? Both careers try to support student success; however, teaching and training careers involve direct instruction of students. Both careers help students learn; however, teaching and training careers are involved in running the school. Both careers are increasing the number of available jobs; however, professional support career earns less money. Both careers have support careers; however, professional support careers assist in the classro

Answers

Answer:

I believe the correct answer is option A: Both careers try to support student success; however, teaching and training careers involve direct instruction of students.

Explanation:

On Edge 2021. Please let me know if this is incorrect.

Briefly explain the laws that apply to the promotion of this product/service.

Answers

Explanation:

Product promotion is the act of advertising a good or service with the goal of increasing sales. Many companies use different techniques to promote their products through a vast array of communication media.

Identifying Job Application Tools
What document is used to summarize a job applicant's experience, education, and achievements?
O test score
O school transcript
O review letter
O resume

Answers

Answer:

Resume

I hope this helps! Have a good life! ✌

Answer:

D - resume

Explanation:

got it correct on edge

The number of minorities in the workforce is _____. a. diminishing b. increasing c. unchanging d. decreasing

Answers

Answer:

Option b (increasing) is the correct choice.

Explanation:

Business owners may use statistics on either the minority race demographic to select a representative sample of about there workers with either the aspects of the brand living nearby. The population group query has also been used to obtain a depend on a number element.

The remaining three options are not relevant to the situation in question. It should be the correct solution to the above.

Answer:

it is b

Explanation:

hope this helps

True/False? cutting costs and boosting productivity are strategies for achieving sustained competitive advantage.

Answers

The given statement "Reducing expenses and increasing efficiency are techniques used to gain lasting superiority in the market" is True because cutting costs and increasing productivity are strategies for achieving sustained competitive advantage. These strategies are beneficial to organizations because cost reduction helps reduce expenses, which increases profitability and improves overall efficiency.

Increasing productivity also helps to reduce costs and increase efficiency as it involves improving efficiency and effectiveness in the organization. Both strategies can help organizations gain a competitive advantage by improving how they operate, reducing costs and increasing productivity. In addition, these strategies can help organizations remain competitive in the long term as they can reduce costs and improve productivity over time, increasing their competitive advantage in the marketplace.

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g. Discuss 3 reasons why governments support business start-ups.

Answers

Answer:

Supporting them means giving the innovation economy a better chance to find solutions. Startups disrupt, transform and better old ideas and create new ones. By doing so they create new markets and opportunities which in turn create more jobs and improve people's lives.

how do imagination and creativity helps in innovating product? ​

Answers

it helps the product become more original

how do I start a business? It has to be a physical business cuz I wanna open a boba shop

My mom says I should take business classes but I am impatient and I wanna know

Answers

Answer: The first when starting a business is knowing what the business is going to be about

Explanation: You made it clear that you want to open a physical store. But before opening a store is important for you to know some basic stuff. Your mom is right about taking some business class and while you take them you can also open the store, which is a learning proccess that never ends.

When opening a store you need to be clear how your product or services is going to help or be a way for people to entertain or enjoy. When you are clear about it you have to think about putting the store in a place that you know you are going to get good visibility. Also, you are going to work on the marketing side and you can do this online creating ads for people to go and see your store.

When you are clear about the ubication and the ways of how to make people come to your store, you need to also think about the design. The type of product that you want to sell needs to have an attractive design that catches people's eyes.

To make 150 telephones, ComTech, Inc. had these manufacturing costs: materials $1,282.29; labor, $1,975.26; factory overhead, $1,234.31. What was the prime cost of making the
telephones? What was the total manufacturing cost of each phone. on average. to the nearest whole cent

Answers

Answer:

The prime cost of making the 150 telephones is the total cost of materials and labor, which is $3,257.55. The total manufacturing cost of each phone, on average, is $21.72 to the nearest whole cent. The factory overhead cost of $1,234.31 is spread out over all of the telephones and is not factored into the prime cost

Explanation:

chandler sporting goods produces baseball and football equipment and lines of clothing. this year the company had cash and marketable securities worth $3.3 million, accounts payables worth $11 million, inventory of $16 million, accounts receivables of $15 million, short-term notes payable worth $3.5 million, other current assets of $1.2 million, and no other current liabilities. what is the company's net working capital?

Answers

The value of Net Working Capital is  $37.7 million

Net Working Capital (NWC) is a measure of a company’s liquidity. It is calculated by subtracting a company's current liabilities from its current assets. Current assets are all assets that can be converted to cash within one year, while current liabilities are all debts that must be paid within one year.

In this case, the company's current assets are $3.3 million in cash and marketable securities, $11 million in accounts payables, $16 million in inventory, $15 million in accounts receivables, and $1.2 million in other current assets, for a total of $41.2 million.

The company's current liabilities are $3.5 million in short-term notes payable, for a total of $3.5 million. The company's net working capital is thus $41.2 million - $3.5 million = $37.7 million.

Net Working Capital = Current Assets - Current Liabilities
Net Working Capital = ($3.3 million + $11 million + $16 million + $15 million + $1.2 million) - ($3.5 million)
= $41.2 million - $3.5 million
= $37.7 million

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Formal education is one way in which an aptitude can be learned.
O True
O False
Sul
Next
Mark this and return
Help pla

Answers

Answer:

True

Explanation:

An "aptitude" tells the person's academic ability or capability to become proficient in a specific field. This ability can be both natural or acquired, which means that some people are simply born with it while others have to learn from scratch.

One way to develop one's aptitude is by "formal education." Being educated allows people to function in the society, which can be used for future employment. Companies provide an assessment to applicants in the form of aptitude test in order to know whether they're most likely to perform well in the position.

Answer:

True

Explanation:

EDG 2021 :)

______ is involved when your manager reviews your performance and evaluates your outcomes.

Answers

Performance evaluation is involved when your manager reviews your performance and evaluates your outcomes.

Performance evaluation is an essential process for an employee and an organization as it determines the strengths, weaknesses, and potential of an employee. It is a systematic and objective process that assesses the performance of employees for a particular period, usually a year.

The process of performance evaluation involves setting performance expectations, monitoring the progress, providing feedback, and finally evaluating the performance.

The main purpose of the performance evaluation process is to identify the strengths and weaknesses of the employees, provide a platform to the employees to improve their skills and enhance their performance, and to make sure that organizational goals and objectives are being met.

The performance evaluation process includes self-assessment, goal setting, and performance feedback. The performance evaluation system is crucial for any organization as it helps in creating a performance-based culture that promotes excellence.

In conclusion, performance evaluation is involved when your manager reviews your performance and evaluates your outcomes, and it is essential for both the employee and the organization.

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All of the following are associated with being a carrying firm EXCEPT
A) being a fully disclosed firm
B) accepting customer securities
C) accepting customer funds
D) being able to clear customer transactions

Answers

A) Being a fully disclosed firm is not associated with being a carrying firm. Being a carrying firm refers to a brokerage or financial institution that accepts and holds customer securities and funds.

As well as being able to clear customer transactions. Carrying firms have the responsibility of safeguarding customer assets, executing trades, and maintaining customer accounts. They handle the custody and settlement of securities and may provide additional services such as margin lending. Being fully disclosed typically refers to a different aspect of brokerage relationships, where the introducing firm discloses its relationship with a clearing firm to its customers.

Therefore, being a fully financial institution is not directly related to the role of being a carrying firm.

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Consider the economies of Kimberlei and Clarkistan, which are identical except that the multiplier in Kumberlei is smaller than that in Clarkstan. This means that Kimberlei's GDP is less sensitive than Clarkistan's GDP to fluctuations in the components of total spending. Features of the economy that reduce its sensitivity to shocks are called automatic stabilizers. Suppose again that the economies of Kimberlei and Clarkistan are identical except that Kimberlei has instituted a system of unemployment insurance,whereas Clarkistan hasn't. Kimberlei's economy is (less, more) sensitive to fluctuations in GDP than Clarkistan's economy. This is because the system of unemployment insurance has (increased, reduced ) Kimberlei's multiplier.

Answers

Since Kimberlei's multiplier is smaller than Clarkistan's, it means that Kimberlei's GDP is less sensitive to fluctuations in the components of total spending. This means that Kimberlei's economy has automatic stabilizers that reduce its sensitivity to shocks.

Now, if we compare Kimberlei and Clarkistan again, but this time Kimberlei has instituted a system of unemployment insurance while Clarkistan hasn't, we can say that Kimberlei's economy is less sensitive to fluctuations in GDP than Clarkistan's economy. This is because the system of unemployment insurance has increased Kimberlei's multiplier, making its economy more resistant to shocks and less sensitive to changes in spending.

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effective human resource management of a company's global cadre ends with the overseas assignment. true false

Answers

False. Effective human resource management of a company's global cadre does not end with the overseas assignment. In fact, it extends beyond the assignment period.

Successful management of a global cadre involves various stages, including pre-assignment, during-assignment, and post-assignment phases.

Pre-assignment activities involve selection, training, and preparation of employees for the international assignment. During-assignment activities focus on supporting expatriates with cultural adaptation, providing necessary resources, and addressing any challenges they may face.

However, post-assignment activities are equally crucial. This phase involves reintegration of employees back into the home organization, utilizing their gained skills and experiences, and facilitating knowledge transfer. It also includes career planning, performance evaluation, and the potential for future international assignments. Effective human resource management extends throughout the entire lifecycle of an expatriate's assignment, ensuring a smooth transition and maximizing the benefits of their international experience for both the employee and the organization.

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The US Supreme Court did what in Piscataway Board of Education v. Taxman, 521 U.S. 1117, 117 S.Ct. 2506 (1997)?

Answers

Answer:

The case was never heard in the United States Supreme Court.

Explanation:

The board of education of Piscataway High School, New Jersey desired to remove one teaching position from the Business Education department. A hindrance to this was the fact that the two teachers being considered had indefinite appointments, and were equal in seniority. According to the state law, tenured teachers can be relieved of their duties in reverse order of seniority. Either Sharon Taxman, a white teacher, or Debra Williams an African-American teacher were to be relieved of their positions.

Taxman was chosen because African-Americans were a minority. Taxman contested this in the court. The case was never heard at the U.S Supreme court because some civil rights group wanted the case to be settled out of court. The United States Court of Appeal ruled in favor of Taxman.

En tus propias palabras, establece la diferencia entre responsabilidad social y ética empresarial

Answers

La ética empresarial comprende los valores y principios de la empresa, mientras que la responsabilidad social es el compromiso de cumplir de manera congruente con el propósito de la empresa.

¿Qué es la ética empresarial?

La ética empresarial señala todos aquellos valores, conjunto de principios y normas que orientan el desenvolvimiento de una empresa en el ámbito de las acciones.

¿Qué es la responsabilidad social?

La responsabilidad social es el compromiso, convenio y disposición que poseen los individuos que forman parte de una empresa de favorecer voluntaria y positivamente al mejoramiento de la sociedad.

Diferencia entre responsabilidad social y ética empresarial

La ética empresarial define la forma en que una empresa opera.

Una empresa es socialmente responsable cuando se asume el compromiso voluntario con la sociedad, y aplica tanto a nivel interno como externo de la empresa.

Por tanto, podemos concluir que la ética empresarial se maneja por ideales y valores, mientras que la responsabilidad social se relaciona con el compromiso de llevar a cabo sus operaciones de una forma ética.

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In which type of business do shareholders own a portion of the company and have some say in how it is run?
Corporation
Limited liability
Partnership
Sole proprietorship

Answers

Partnership  type of business do shareholders own a portion of the company and have some say in how it is run. The three primary types of partnerships are general partnerships.

Limited partnerships, and limited liability partnerships when referring to a for-profit endeavor carried out by two or more people. All partners in a general partnership are equally liable financially and legally. Through company partnerships, you can access more information, skills, and resources that will help you create better goods and reach a wider market. When combined with 360-degree and the feedback, all of these can help your business reach new heights.

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Answer:

corporation

Explanation:

I took the test and got it right

You purchased a new server that is worth $60,000. The system was estimated to have
a service life of 5 years with salvage value of $3,000. The property has been
depreciated according to a 5 year MACRS property class. You are considering selling
the asset for $5,000 after 5 years.
a. Calculate the annual depreciation allowances over 5 years [4 points]
b. Calculate the annual book values over 5 years [4 points]
c. Is there any capital gains or loss? What is it? [1 + 1 point]
I want mathematical solution for this

Answers

To calculate the annual depreciation allowances and book values over 5 years for a server purchased for $60,000 with a service life of 5 years, salvage value of $3,000, and a planned sale for $5,000 after 5 years, we can use the Modified Accelerated Cost Recovery System (MACRS) method. The MACRS property class for the server is 5 years.

a. The annual depreciation allowances can be calculated using the MACRS method. In this case, we have a 5-year property class. The MACRS depreciation percentages for the 5-year property class are 20%, 32%, 19.20%, 11.52%, 11.52%, and 5.76% for years 1 to 5, respectively. To calculate the annual depreciation allowances, we multiply the depreciation percentages by the initial cost of the server:

Year 1: $60,000 × 20% = $12,000

Year 2: $60,000 × 32% = $19,200

Year 3: $60,000 × 19.20% = $11,520

Year 4: $60,000 × 11.52% = $6,912

Year 5: $60,000 × 11.52% = $6,912

b. The annual book values can be calculated by subtracting the accumulated depreciation from the initial cost:

Year 1: $60,000 - $12,000 = $48,000

Year 2: $60,000 - $12,000 - $19,200 = $28,800

Year 3: $60,000 - $12,000 - $19,200 - $11,520 = $18,280

Year 4: $60,000 - $12,000 - $19,200 - $11,520 - $6,912 = $11,368

Year 5: $60,000 - $12,000 - $19,200 - $11,520 - $6,912 - $6,912 = $4,456

c. To determine if there is any capital gain or loss, we compare the resale value of $5,000 with the book value after 5 years, which is $4,456. Since the resale value ($5,000) is higher than the book value ($4,456), there is a capital gain of $544 ($5,000 - $4,456).

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