Laurel contributed equipment worth $200,000, purchased 10 months ago for $250,000 cash and used in her sole proprietorship, to sand creek llc in exchange for a 15 percent profits and capital interest in the llc. laurel agreed to guarantee all $15,000 of sand creek’s accounts payable, but she did not guarantee any portion of the $100,000 nonrecourse mortgage securing sand creek’s office building. other than the accounts payable and mortgage, sand creek does not owe any debts to other creditors. a. what is laurel’s initial tax basis in her llc interest?

b. laurel’s holding period in the partnership interest begins the day the llc interest is acquired. true or false? c. what is sand creek’s initial basis in the contributed property?

d. what is sand creek’s holding period in the contributed property?

Theodore is researching computer programming he thinks that this career has a great employment outlook so he’d like to learn if it’s a career in which he would excel what to skills are important for him to have and becoming a successful computer programmer

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u.s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u.s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u.s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600

Atlas manufacturing produces a unique valve, and has the capacity to produce 50,000 valves annually. currently atlas produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. what is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change? a. total manufacturing costs will increase and unit manufacturing costs will also increase. b. total manufacturing costs will stay the same and unit manufacturing costs will stay the same. c. total manufacturing costs will increase and unit manufacturing costs will decrease. d. total manufacturing costs will increase and unit manufacturing costs will stay the same.