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[DOC File]Solutions to Odd-Numbered Problems
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The reservation price required to sell half the good used cars is according to PS(G) is: PS(0.5) = 6000 + 0.5·3000 = $7,500. The price demanded by good used car owners in order to have half of them be offered for sale is more than consumers would be willing to pay. The only solution for this market is for all used cars to be lemons. 7. a.
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[DOC File]Solutions for Homework ** Accounting 311 Cost ** Winter 2009
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Cost variability: With respect to changes in the number of cars assembled. There may be some debate over classifications of individual items, especially with regard to cost variability. Cost Item D or I V or F A D V B I F C D F D D F E D V F I V G D V H I F 2-22 (15–20 min.) Variable costs and fixed costs. 1.
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[DOC File]FEDERAL INCOME TAX
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W’s FMV = 15K J’s FMV = 16. W’s A/R = 16 + his basis of 10 ( his gain = 6K. J’s A/R = 15K – 20K (his basis) ( his gain = -5K. Wyatt’s tax cost = 10K + 6K or 16 according to FMV. Jones’ tax cost = 20K basis + -5 = 15K or FMV under Phil rule of 15K. 3. Debt Incurred in the Acquisition of Property. Crane is the biggest name case in ...
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[DOC File]Solutions to Odd-Numbered Problems - Pearson Education
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7. a. If all good cars are sold then all cars are sold so the fraction is 1. 1/3 are lemons. b. If half of good used cars are sold then half are not. Since 1/3 of all cars are lemons, 2/3 are good so half of these are sold. The other half are not sold. This means that 2/3 of all used cars are sold.
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Best used luxury cars under 15k