The stock of lavender corporation is held as follows: 80% by jade corporation (basis of $400,000) and 20% by tiffany (basis of $100,000). lavender corporation is liquidated in december of the current year, pursuant to a plan adopted earlier in the year. pursuant to the liquidation, lavender corporation distributed asset a (basis of $600,000, fair market value of $900,000) to jade, and asset b (basis of $250,000, fair market value of $225,000) to tiffany. no election is made under § 338. with respect to the liquidation of lavender:

(a) lavender recognizes a loss of $25,000 on the distribution of asset b.
(b) jade has a basis in asset a of $900,000.
(c) tiffany has a basis in asset b of $225,000.
(d) jade recognizes a gain of $500,000.
(e) lavender recognizes a gain of $300,000 on the distribution of asset a.

Amathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. thus, if mexico's real gdp per person is growing at 7 percent per year, it will take about 10 years(=70/7) to double. apply the rule of 70 to solve the following problem. real gdp per person in mexico in 2005 was about $11,000 per person, while it was about $44,000 per person in the u.s. if real gdp per person in mexico grows at the rate of 5 percent per year: how long will it take mexico's real gdp per person to reach the level that the united states was at in 2005? (hint: how many times would mexico's 2005 real gdp per person have to double to reach the u.s.'s 2005 real gdp per person?

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.

An electronics store is running a promotion where for every video game purchased, the customer receives a coupon upon checkout to purchase a second game at a 50% discount. the coupons expire in one year. the store normally recognized a gross profit margin of 40% of the selling price on video games. how would the store account for a purchase using the discount coupon?