In april of the current year, mr. beach, an accrual-basis taxpayer, had a $25,000 theft loss from inventory items held for sale to customers in the ordinary course of his business. in august of the current year, he received a $25,000 reimbursement from his insurance company to cover the loss. which of the following is a correct method of reporting the loss and reimbursement on beach's income tax return? a. include the $25,000 in ordinary income; the loss is accounted for in the cost of goods sold. b. do not report the loss as a separate item; do not include the $25,000 in ordinary income. c. include the $25,000 in ordinary income; decrease the cost of goods sold by the $100 casualty loss rule. d. apply the 10% adjusted gross income rule to the loss; the amount of the deductible loss would be the amount of the reimbursement to be included in ordinary income.

In its first year of operations, crane company recognized $31,700 in service revenue, $7,700 of which was on account and still outstanding at year-end. the remaining $24,000 was received in cash from customers. the company incurred operating expenses of $16,600. of these expenses, $12,690 were paid in cash; $3,910 was still owed on account at year-end. in addition, crane prepaid $3,260 for insurance coverage that would not be used until the second year of operations.

Which of the following is a disadvantage of equity alliances when compared to non-equity alliances? 1. they are reflective of weaker ties between firms.2. they do not permit the exchange of explicit knowledge.3. they are more likely to bring about lack of trust and commitment.4. they require significantly higher levels of investment.

Ajustification for job training programs is that they improve worker productivity. suppose that you are asked to evaluate whether more job training makes workers more productive. however, rather than having data on individual workers, you have access to data on manufacturing firms in ohio. in particu- lar, for each firm, you have information on hours of job training per worker (training) and number of nondefective items produced per worker hour (output). (i) carefully state the ceteris paribus thought experiment underlying this policy question. (ii) does it seem likely that a firm’s decision to train its workers will be independent of worker characteristics? what are some of those measurable and unmeasurable worker characteristics? (iii) name a factor other than worker characteristics that can affect worker productivity. (iv) if you find a positive correlation between output and training, would you have convincingly established that job training makes workers more productive? explain.