Exercise 21-19 (a) (LO. 3)

On January 11 of the current year, Birchfield and Torcoletti form the BT LLC. Their contributions to the LLC are as follows:

Adjusted Basis Fair Market Value
From Birchfield:
Cash $112,000 $112,000
Accounts receivable $0 $69,000
Inventory $205,000 $215,000
From Torcoletti:
Cash $396,000 $396,000

By January 31, BT collects the receivables and sells the inventory for $215,000 cash.

BT realized the following income in the current year from these transactions:
a.

of $
from collecting cash basis accounts receivable.
b.

of $
from sale of inventory.

c. This rule exists to ensure that a partner and partnership

property between themselves and alter the inherent character of the underlying deferred income, gain, loss, or deduction.

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

States that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause. rule of fair treatment due-process policy rule of law employment flexibility employment at will

You should do all of the following before a job interview except