Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. both assets qualify as §1231 assets. the first is machinery and will generate a $10,000 §1231 loss on the sale. the second is land that will generate a $7,000 §1231 gain on the sale. aruna’s ordinary marginal tax rate is 30 percent.

1. a. assuming she sells both assets in december of year 1 (the current year), what effect will the sales have on aruna’s tax liability? aruna's tax liability will (blank) by (blank)

2. assuming that aruna sells the land in december of year 1 and the machinery in january of year 2, what effect will the sales have on aruna’s tax liability for each year?

aruna's tax in year 1 by
aruna's tax in year 2 by

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?

Which three of the following expenses can student aid recover? -tuition -television -school supplies -parties and socializing -boarding/housing