This year, sigma inc. generated $620,250 income from its routine business operations. in addition, the corporation sold the following assets, all of which were held for more than 12 months. initial basis acc. depr.* sale price marketable securities $ 152,400 $ 0 $ 65,000 production equipment 100,400 80,320 36,500 business realty: land 216,750 0 227,500 building 212,000 63,600 224,000 *through date of sale. compute sigma’s taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured section 1231 losses. recompute taxable income assuming that sigma sold the securities for $160,800 rather than $65,000.

answer; capital structure decision;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.