3. Brett has almond orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner of the walnut orchard next door has offered toswap this year's crop with him. Assume he produces 1,005 tons of almonds and his neighbor produces 761 tons of walnuts. If the market price ofalmonds is $107 per ton and the market price of walnuts is $115 per ton:a. Should he make the exchange?b. Does it matter whether he prefers almonds or walnuts? Why or why not?a. Should he make the exchange?The market value of the almond crop is $The market value of the walnut crop is $(Round to the nearest dollar.)(Round to the nearest dollar.)So, should he make the exchange?(Select from the drop-down menu.)b. Does it matter whether he prefers almonds or walnuts? Why or why not?No. His preference is irrelevant to the value of the crops.Is the above statement true or false?(Select from the drop-down menu.)

Two owners have two different commodities. We have to find if the swap of the commodities makes…

Answered: Brett has almond orchards, but he is…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 51P

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Brett has almond orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner of the walnut orchard next door has offered to swap this year's crop with him. Assume he produces 1043 tons of almonds and his neighbor produces 778 tons of walnuts. If the market price of almonds is $102 per ton and the market price of walnuts is 118 per ton: a. Should he make the exchange? b. Does it matter whether he prefers almonds or walnuts? Why or why not? **round to the nearest dollar**
Monique has a flock of six chickens in her backyard that she initially bought for $6 each. Theflock currently lays 20 eggs per week, which Monique and her family consume at home, andher current cost of feed is $2 per week. Monique has a job that pays $8/hour with flexiblehours, but she is thinking of selling her chickens’ eggs to earn extra income. To start sellingeggs, she would need to increase production to 30 eggs per week. She can do this by increasingthe chickens’ feed to $3 per week and taking an hour off work each week to devote to chickenrearing. If the market price of her farm-fresh eggs is $1 per egg, what would be Monique’sweekly economic profits from selling her chickens’ eggs? (Select one.)(a) −$9: This is her revenue minus her accounting cost.(b) −$1: This is her revenue minus her production cost.(c) $0: Eggs are a constant-cost market so producers must earn 0 profits.(d) $1: This is her revenue minus her economic cost.(e) $7: This is her revenue minus her accounting…
Michiko and Saul are planning to attend the same university next year. The university estimates tuition, books, fees, and living costs to be 12,000 per year. Michikos father has agreed to give her the 12,000 she needs to attend the university. Saul has obtained a job at the university that will pay him 14,000 per year. After discussing their respective arrangements, Michiko figures that Saul will be better off than she will. What, if anything, is wrong with Michikos thinking?
An investor was afraid that he would become like King Lear in his retirement and beg hospitality from his children, so he purchased grain "tithes," or shares in farm output, for 460 pounds. The tithes paid him 61 pounds per year for 32 years. What interest rate did the he receive on this investment?
Javier has a worm business in which he buys night crawlers from younger kids for 4 cents each and sells them for $1.25 per dozen. What is the percent markup on cost, to the nearest tenth of a percent?
Adela plans to set up a sewing workshop. She estimates that renting a well-located shop would cost her $ 1,000,000 per month. In addition, she needs to buy an industrial sewing machine for $ 800,000, an overlock machine for $ 500,000, and a cutting machine for $ 600,000. He also needs to buy an ironing machine worth $650,000 and cutting tables and other furniture for an estimated total of $1,500,000.The corporate tax rate is 25% and the fixed assets are depreciated on a straight-line basis over 4 years.The residual value of the fixed assets is equal to 10% of their acquisition value.Adela estimates that in the first year she would generate $25 million in sales revenue, which is estimated to increase by $5 million per year to $40 million per year in the fourth year. Of this amount, the cost of sales is 20% of sales and in addition it must cancel administrative and salary expenses of $ 10 million annually.IT IS REQUESTED: Considering the above, make the 4-year evaluation to conclude…
T grows beets in her own garden. Although T detests beets, she will be required torecognize income when:a. She harvests her beets.b. She consumes beets that she could have sold for $100.c. She sells beets for $100 to somebody who actually likes them.d. She exchanges $100 worth of beets for $100 worth of spinach grown by herneighbor.e. Both (c) and (d) are correct T (a cash method taxpayer) pays $250,000 for a house to be held as an investment (it isactually worth $300,000).a. In all cases, T would be required to recognize $50,000 as income in the year hebuys the house.b. T will never be required to recognize income until he disposes of the house inan arm’s length sale or exchange.c. If T acquired the house from a person who owes him $50,000 for services rendered,T would be required to recognize $50,000 as income in the year he buysit.d. (c) would be the correct answer only if T accepts the house in satisfaction of thedebt owed to him for services rendered.e. None of the above.
Victor is somewhat satisfied with his sales career and has always wondered about a career as a teacher in a public school. He would have to take a year off work to go back to college to obtain his teaching certificate, and that would mean giving up his $52,000 salary for a year. Victor expects that he could earn about the same income as a teacher. Round your answers to the nearest dollar. What would his annual income be after 10 years as a teacher if he received an average 3 percent raise every year? Round Future Value of a Single Amount in intermediate calculations to four decimal places.
Dekentra sells boxes of note cards imprinted with her sketches of bird life along the South Carolina coast. If it costs $625 to produce 75 box of cards and she wants to earn a profit of at least $2,000, what should she charge per box?
One of Natalie’s friends, Curtis Lesperance, runs a coffee shop where he sells specialty coffees and prepares and sells muffins and cookies. He is eager to buy one of Natalie’s fine European mixers, which would enable him to make larger batches of muffins and cookies. However, Curtis cannot afford to pay for the mixer for at least 30 days. He asks Natalie if she would be willing to sell him the mixer on credit. Natalie comes to you for advice. She asks the following questions. “Curtis has given me a set of his most recent financial statements. What calculations should I do with the data from these statements, and what questions should I ask him after I have analyzed the statements? How will this information help me decide if I should extend credit to Curtis?” “Is there an alternative other than extending credit to Curtis for 30 days?” “I am thinking seriously about being able to have my customers use credit cards. What are some of the advantages and disadvantages of letting my…
One of Natalie’s friends, Curtis Lesperance, runs a coffee shop where he sells specialty coffees and prepares and sells muffins and cookies. He is eager to buy one of Natalie’s fine European mixers, which would enable him to make larger batches of muffins and cookies. However, Curtis cannot afford to pay for the mixer for at least 30 days. He asks Natalie if she would be willing to sell him the mixer on credit. Natalie comes to you for advice. She asks the following questions. “Is there an alternative other than extending credit to Curtis for 30 days?”
Ryan, an agent, was able to sell Mikoy Frozen Products worth 50,000.00. Given her commission of 10%. How much will he receive if his earnings are based on commission alone?

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