suppose moni thinks a 100 percent increase in her hourly wage as an incentive to work more hours while the price level also increases by 100 percent. moni is said to be suffering from money illusion. rationality. irrationality. the effects of competition.

To create a portfolio with zero risk, we need to find the weightage of stock A and stock B that would offset the risk associated with each other.

Since the correlation coefficient between the returns on stock A and B is -1, it implies that the returns on these two stocks move in opposite directions. Thus, by combining these two stocks, we can create a portfolio with zero risk.

To calculate the weightage of stock A in the portfolio, we can use the formula:

[tex]Weight of Stock A = (Standard deviation of Stock B)^2 / [(Standard deviation of Stock A)^2 + (Standard deviation of Stock B)^2][/tex]

Substituting the values given in the question, we get:

Weight of Stock A =

[tex](0.15)^2 / [(0.10)^2 + (0.15)^2][/tex]

= 0.36 or 36%

Therefore, to create a portfolio with zero risk, we need to invest 36% of our funds in stock A and 64% in stock B.

By combining these two stocks in this proportion, the total risk associated with the portfolio would be reduced to zero, as the movements in one stock would offset the movements in the other. This approach is known as diversification, and it helps to reduce the overall risk of the portfolio.

Learn more about diversification here :

https://brainly.com/question/15259776

#SPJ4

To determine the best loan option for Madeline to borrow $5,000 for inventory and equipment, it's essential to compare the interest rates, loan terms, and any fees associated with each loan option.

The best deal would typically have a lower interest rate, reasonable repayment terms, and minimal fees. Madeline is comparing her options to borrow $5,000 to buy inventory and equipment for her new sub sandwich shop. The loan that appears to be the best deal depends on the terms and interest rates of each option, which are not provided in the question.

What is inventory? Inventory refers to the goods and materials that a business holds for the ultimate purpose of resale. What is borrowing? Borrowing is the act of obtaining money or other assets from a lender in exchange for future repayment, with interest and fees included. What is a loan? A loan is a financial product that allows a borrower to borrow a fixed amount of money at a fixed or variable interest rate for a fixed term, with regular payments that include both principal and interest.

Learn more about Inventory:

https://brainly.com/question/14184995

#SPJ11

If Porter Company has classified its debt investment in Bailey Company as an available-for-sale security, the result of the increase in fair value of the investment by $5,000 will be recorded as an unrealized gain in other comprehensive income (OCI) on the balance sheet.

Available-for-sale securities are investments in debt or equity securities that are not held for trading or held to maturity. Changes in the fair value of available-for-sale securities are recorded in OCI, which is a component of shareholders' equity. The unrealized gains and losses are not recognized in the income statement until the security is sold or impaired.

In this case, since the investment in Bailey Company has increased in value, the increase in fair value will be recorded as an unrealized gain in OCI. This means that the fair value of the investment will be increased by $5,000 on the balance sheet, and the unrealized gain will be recorded in the OCI section of the shareholders' equity section of the balance sheet.

It's important to note that the unrealized gain has not been realized yet, and Porter Company has not received any cash or other assets in exchange for the increase in fair value of the investment.

To know more about   investment  Here

https://brainly.com/question/1400500

#SPJ4

The condition where a firm expands its output and still incurs the same level of long-run average cost is known as constant returns to scale (CRS).

In other words, CRS implies that when a firm increases its inputs by a certain proportion, its output also increases by the same proportion and the long-run average cost remains constant.

This concept is a fundamental principle in economics and it implies that the cost per unit of production remains unchanged as the scale of production increases. This means that a firm can continue to produce at the same level of efficiency without experiencing any increase in its production costs.

The existence of constant returns to scale has important implications for firms and the economy. In a competitive market, it implies that firms can enter and exit the market freely without causing any change in the overall cost structure of the industry. This promotes competition and efficiency, which ultimately leads to lower prices for consumers.

Overall, constant returns to scale is an important concept in economics that has significant implications for firm behavior and market outcomes.

To learn more about firm click on,

https://brainly.com/question/29773386

#SPJ4

The direct labor costs per machine hour for Macon Company is $7.50 per hour. To use the high-low method to calculate the direct labor costs per machine hour for Macon Company, need to follow these steps.

Determine the variable cost per unit by finding the difference in cost between the highest and lowest activity levels and dividing it by the difference in the corresponding machine hours.

Determine the fixed cost by using either the high or low activity level cost equation formula and solving for the fixed cost.

Use the fixed cost and the variable cost per unit to calculate the direct labor cost for any activity level by multiplying the variable cost per unit by the number of machine hours for that activity level and adding the fixed cost.

In this case, the variable cost per unit is $9.20, which is found by dividing the difference in cost between the highest and lowest activity levels ($92,000) by the difference in machine hours (10,000).

The fixed cost is $87,000, which is found by using either the high or low activity level cost equation formula and solving for the fixed cost.

Finally, to find the direct labor costs per machine hour, you divide the fixed cost by the total machine hours (12,000) to get a result of $7.50 per hour.

Read more about costs.

https://brainly.com/question/14570873

#SPJ11

The present value of growth opportunities (PVGO) is c)$20 per share.

The formula for PVGO is the difference between the current stock price and the stock price that reflects only the company's current assets and earnings capacity. This can be calculated using the formula: PVGO = Current Stock Price - (Earnings per Share / Required Rate of Return).

In this case, the earnings per share is $6, and the required rate of return is 20%, or 0.20. Therefore, the stock price that reflects only the company's current assets and earnings capacity is $6 / 0.20 = $30. The current stock price is $50, so the PVGO is $50 - $30 = $20 per share.

PVGO represents the value of the company's growth opportunities that are not yet reflected in its current earnings. It is based on the idea that investors are willing to pay more for a stock if they believe that the company has strong growth potential. The higher the PVGO, the more the company's growth opportunities are worth to investors.

For more questions like PVGO click the link below:

https://brainly.com/question/29455664

#SPJ11

As per the compound interest concept, the present value of the payment is $6893556.22.

In this case, we have a future payment of $8675309 that will be received in 39 months. However, because of compound interest, the present value of that payment will be less than $8675309.

To calculate the present value, we need to use a formula that takes into account the interest rate, compounding frequency, and time. The formula is:

PV = FV / (1 + r/n)ⁿˣ

where PV is the present value, FV is the future value, r is the annual interest rate, n is the number of times the interest is compounded per year, and x is the time in years.

Plugging in the numbers, we get:

PV = $8675309 / [tex](1 + 0.06/4)^{(4 \times 39/12)}[/tex]

PV = $6893556.22

This is the amount that would need to be invested today, at 6.0% quarterly compounded interest, to equal the future payment of $8675309 in 39 months.

To know more about compound interest here

https://brainly.com/question/29335425

#SPJ4

One trade sales promotion technique aimed at retailers that helps to ensure that employees at every level understand the features, advantages, and benefits of the products they are trying to sell is called "training programs."

Training programs are designed to provide retailers' employees with the knowledge and skills needed to sell a company's products effectively. These programs can include product demonstrations, interactive training sessions, online learning modules, and educational materials, such as brochures, videos, and manuals.

The purpose of these training programs is to help employees understand the unique features and benefits of a product, which will enable them to communicate effectively with customers and increase sales.

By providing retailers with training programs, companies can differentiate their products from competitors and create a knowledgeable sales force that can effectively promote their products. Overall, training programs are a valuable trade sales promotion technique that can increase the effectiveness of a company's sales efforts.

To learn more about training programs

https://brainly.com/question/28264443

#SPJ4

Teams are frequently overused is not an advantage of working in a team. Option B is the correct answer.

Teams are groups of people who have a shared goal and work together to produce that goal.  Each squad member possesses special qualities and abilities.  Without the diverse contributions of the team members, the outcomes could not have been achieved.  Or, to put it another way, the whole is larger than the sum of the parts.

Making proactive choices about their work organization is more crucial for groups of people than simply joining a team for its own sake. The best structure might be independent labor that is assembled at the project's conclusion.

Learn more about Teams:

brainly.com/question/29741866

#SPJ4

The correct response is $340,000. If the line is dropped, the total net income is $340,000.

Before tax, benefits, and other payroll deductions are taken out of an employee's paycheck, that amount is known as their gross pay. Net pay, often known as start taking pay, is the amount that is left after all tax withholding have been taken into account. A single number, known as net income or net profit, designates a certain kind of profit. Net income is a financial statement's well-known bottom line.

If the hard rubber line is dropped, the fixed expenses of $22,000 will be eliminated, but the contribution margin of $7,000 will also be lost. Therefore, the net income will decrease by $15,000 ($7,000 contribution margin - $22,000 fixed expenses).

The new net income will be:

Wood: $95,000

Aluminum: $245,000

Total: $340,000

Therefore, the correct answer is $340,000.

Learn more about net income here

https://brainly.com/question/28390284

#SPJ4

As a health-conscious consumer, which resource would provide the most reliable information to allow you to choose the most sustainable option when there are several unusual or unfamiliar choices of seafood on the menu is the Monterey Bay Aquarium Seafood Watch.

The Monterey Bay Aquarium Seafood Watch program aims to create recommendations for environmentally sustainable seafood. The program is operated by the Monterey Bay Aquarium in Monterey, California, which is devoted to the preservation of ocean life and ecosystems. The program offers online and printable seafood guides that list the seafood by how environmentally sound it is.

They rate the seafood as either “Best Choices,” “Good Alternatives,” or “Avoid.”The most sustainable option can be chosen by referring to the Monterey Bay Aquarium Seafood Watch program. They offer information on the seafood's nutritional content and the environmental effects of consuming it. The program also assists in determining whether the seafood is wild-caught or farmed, and if it is caught in the US or abroad.

In conclusion, Monterey Bay Aquarium Seafood Watch program is the most reliable source of information when it comes to choosing environmentally sound seafood. Therefore, choosing the right seafood for consumption requires looking beyond just its taste or texture, and determining the impact of the seafood choice on the ecosystem.

For more such questions on consumer visit:

https://brainly.com/question/26313265

#SPJ11

When a learning goal is very important and the relationship of the people involved is important, the strategy recommended for managing the conflict is "Collaborating strategy".

Collaborating strategy: This is the most effective conflict management strategy that encourages people to work together to find mutually beneficial solutions to the problem. It promotes a cooperative attitude and focuses on satisfying everyone's interests. Both parties must communicate effectively and actively listen to one another. This strategy entails identifying and addressing the root cause of the conflict, and both parties must be willing to make concessions if necessary. The Collaborating strategy can be beneficial when a learning goal is significant and the connection between people is crucial. Collaborating can aid in the development of a stronger connection between the individuals involved in the conflict, as well as the development of new ways of working together. Collaborating strategy, in general, necessitates open-mindedness and a desire to seek a solution that benefits everyone involved.

Know more about Collaborating strategy here;

https://brainly.com/question/14729092

#SPJ11

The shampoo companies demonstrate monopolistic competition as their market structure.

In this structure, there are many producers offering similar products with slight variations and unique features, like the special different benefits promised in each shampoo commercial.

The shampoo industry is an example of a market structure known as monopolistic competition. In this type of market structure, there are many producers offering similar but slightly differentiated products to consumers.

This means that while there may be many brands of shampoo available, each brand may have unique features or claims, such as different formulas for dry or oily hair or promises of extra shine or volume.

One of the defining characteristics of monopolistic competition is product differentiation. Companies in this market structure differentiate their products through branding, marketing, and unique features, such as special ingredients, packaging, or claims of certain benefits.

This product differentiation can create brand loyalty among consumers and can also help companies to command a slightly higher price for their products.

However, because there are many companies in this market structure, each with slightly different products, there is also competition among firms.

While companies may be able to charge slightly higher prices for their products due to brand loyalty or unique features, they must also be mindful of competitors who may be offering similar products at lower prices.

To learn more about market structure, refer below:

https://brainly.com/question/25813298

#SPJ11

The order is A sales process is a set of repetitive procedures that your sales team does to turn prospects into clients. It consists of an autonomous series of emails and tasks.

Building a sales process is likely the most crucial thing you can do as a sales manager to influence your team's capacity to sell, and it is extremely essential to the success of your business. If your sales force lacks a sales process, something needs to be done immediately. Fortunately, it is not as difficult as it would appear to build a sales process from beginning. We have developed this end-to-end manual on how to construct a sales process from the ground up to assist in providing your sales agents with a clear and efficient path to follow.

       Learn more about emails here:

https://brainly.com/question/14666241

#SPJ4

$1,500 is the balance in the income summary account before closing net income or loss to the retained earnings account.

The income summary account is a temporary account used to summarize revenues and expenses for the period before transferring the net income or loss to the retained earnings account. we need to subtract the expenses and dividends from the revenues.

Net Income = Revenues - Expenses

Given data:

Revenues = $11,000

Expenses = $7,500

Dividends = $2,000

We can calculate the Net Income by :

Net Income = Revenues - Expenses

= $11,000 - $7,500

= $3,500

Balance in Income Summary Account = Revenues - Expenses - Dividends

= $11,000 - $7,500 - $2,000

= $1,500

Therefore, the balance in the income summary account before closing net income or loss to the retained earnings account is $1,500.

To learn more about the income statement:

https://brainly.com/question/28936505

#SPJ4

Government regulations help balance negative externalities such as age restrictions for social security recipients, mining regulations to fight black lung disease, gender controls over alcohol purchases and consumption, and drug testing for workers at private businesses.

Externalities are the costs or benefits of a market activity that are not reflected in the price paid by the consumer or received by the producer, which have an effect on a third party. Externalities are classified as negative or positive based on whether they harm or benefit society. Governments may interfere in markets in order to correct externalities, which are frequently referred to as market failures. This can take the form of taxes, subsidies, regulation, or other mechanisms.Apart from the externalities, several other factors need to be considered for the welfare of the society. In fact, regulations are necessary for the welfare of the society. Age restrictions for social security recipients are necessary to ensure that it does not get misused, Mining regulations to fight black lung disease are necessary as well. Gender controls over alcohol purchases and consumption have been put in place to ensure a balanced society, and drug testing for workers at private businesses is necessary to ensure that people do not get affected by an employee’s personal habits.

Know more about externalities here;

https://brainly.com/question/24233609

#SPJ11

If A domestic Limited Liability Company (LLC) that is not classified as a corporation under IRS regulations and is owned entirely by one individual taxpayer is known as a single-member LLC. By default, unless the taxpayer elects otherwise, the company will be taxed as a disregarded entity.

In this case, the LLC's income, deductions, and credits are reported directly on the individual taxpayer's personal income tax return (Form 1040), using Schedule C for reporting business income and expenses.

This means that the company's profits and losses will be subject to self-employment taxes and personal income tax rates of the individual owner.

However, the single-member LLC owner can elect to have the company taxed as a corporation by filing Form 8832, Entity Classification Election. If this election is made, the LLC would need to file a separate corporate tax return (Form 1120) and pay corporate taxes on its profits.

Additionally, the owner would be taxed on any salary or dividends received from the company. In summary, a single-member LLC not classified as a corporation will be taxed as a disregarded entity by default, but the owner has the option to elect corporate taxation if desired.

Learn more about tax return at

https://brainly.com/question/14748046

#SPJ11

Sosoft Company increasing the price of its hand soap while selling it in a smaller bottle is an example of a "pricing strategy".

The pricing strategy where a company sets a high price for a new or innovative product when it is introduced to the market. This strategy is often used to recover the costs of research and development and to take advantage of early adopters who are willing to pay a premium price for the product.

In this case, Sosoft Company has increased the price of its hand soap, but has reduced the size of the product by selling it in a smaller bottle. This allows the company to maintain a high price per unit of soap, while reducing the actual amount of soap that customers receive.

The reason of use this strategy may be used to maximize profits from a loyal customer base who are willing to pay a premium price for the product, while minimizing the impact of price increases on sales volume. However, it may also result in customers switching to lower-priced alternatives if they perceive the value to be insufficient.

To know more about pricing strategy here,

https://brainly.com/question/31007017

#SPJ4

An insurance policy is a contract between the policyholder and the insurance company.

An insurance policy is a contract between the insurance company and the policyholder. The contract provides financial protection against losses that may be incurred due to unforeseen events.

It establishes the terms and conditions of the insurance agreement, including the coverage provided, the premiums paid, and the deductible. Insurance policies are designed to protect the policyholder from financial losses that may arise due to unexpected events, such as accidents, theft, or natural disasters.

Learn more about insurance policies at

https://brainly.com/question/29099324

#SPJ11

During the COVID-19 pandemic, the parent business, Alphabet, has carefully switched from telework to in-person work.

The business has made it clear that it won't switch to in-person labor until a number of conditions are satisfied, such as a sharp decline in the incidence of COVID-19 in the neighborhood, the accessibility of immunizations, and adherence to local laws.

Employees at Alphabet are free to continue working remotely if they so wish, further demonstrating the company's flexibility in its strategy. Overall, Alphabet's plan places a high priority on employee safety and well-being while also taking into account the needs of the business and the changing pandemic environment.

Learn more about which best describes alphabet's

https://brainly.com/question/17297831

#SPJ4

The given statement " a hospital has a comprehensive cancer center that has surgery, interventional radiology, counseling, gynecological surgery, breast reconstructive surgery, and many other related aspects pertaining to the treatment of adult cancer. this would be referred to as its product line." is true because a hospital's product line is not limited to just one department or center, and includes a range of services that cater to the diverse needs of patients.

The hospital's comprehensive cancer center, which offers a range of services for the treatment of adult cancer, can be considered as a product line. In this case, the products or services are the various treatments and procedures that are available for cancer patients.

The hospital's product line may include surgery, interventional radiology, counseling, gynecological surgery, breast reconstructive surgery, and other related services that are necessary for the treatment of cancer.

However, it is important to note that a hospital's product line is not limited to just one department or center. Hospitals offer a wide range of services, including emergency care, inpatient and outpatient care, laboratory and imaging services, and more. Each of these services can be considered as a product line in itself, as they cater to different needs and requirements of patients.

To know more about product line here

https://brainly.com/question/27499240

#SPJ4

In terms of refusing credit, there are a few things you should avoid including. These are:

An indirect organizational pattern can be challenging to understand for the reader. It can also give the impression that the refusal is hesitant or ambiguous, which can cause frustration or confusion. Language that causes hard feelings or resentment should also be avoided. This can include negative or judgmental statements that may cause the recipient to feel insulted or undervalued. Disclosures that could lead to a lawsuit should be avoided at all costs. This could include accusations or insinuations that could damage a person's reputation or cause them financial harm. Instead, it's best to keep your communication objective and neutral, avoiding any inflammatory language or contentious statements.

Learn more about resentment here https://brainly.com/question/11695266

#SPJ11

The correct answer is option c. A product type is a collection of goods with the same features.

A group of products having comparable attributes, aesthetics, functions, and production methods is referred to as a product type. It is a method of categorising goods that combines things that are comparable to or connected to one another.

An assortment of equipment, a line of clothing, or a particular kind of cuisine could all be considered product types. Product categories offer a practical approach to categorise products for advertising, marketing, and purchasing decisions.

Product categories assist organisations determine which items are comparable and which are not, as well as the qualities and attributes of a certain product.

Also, this facilitates clients' quicker and easier product discovery. The right products are ordered in the right quantities thanks to the assistance of product types in inventory management.

To learn more about Product categories visit:

https://brainly.com/question/17272069

#SPJ4

According to the information given by calculating, the Stony Brook's inventory period will last 29.30 days.

An asset management ratio that gauges how long it takes to move inventory is the length of the inventory period.

The calculation is as follows:

Inventory divided by (Cost of Goods Sold/365) equals the length of the inventory interval.

We can either take the ending balance or the average of the starting and ending balances to calculate the inventory. I'll use the final inventory amount in this case.

As a result, the length of the inventory time is calculated as follows: $61,000 (759,700 / 365) = 29.30 days.

To learn more about inventory period, here:

https://brainly.com/question/18649542

#SPJ4

Ralph gets a strike 30% of the time, so the probability of a strike is 0.3. The probability of not getting a strike is complement of getting a strike, which is 1 - 0.3 = 0.7. The probability can be calculated using individual probabilities of getting a strike, not getting a strike.

A turkey consists of three consecutive strikes, and failing to get a clover means not getting a fourth strike in a row. Therefore, the probability we want to calculate is the probability of getting three strikes followed by not getting a fourth strike.

We can find this probability by multiplying the individual probabilities: (Probability of 1st strike) x (Probability of 2nd strike) x (Probability of 3rd strike) x (Probability of not getting a 4th strike).

So, the probability that Ralph gets a turkey, but fails to get a clover is: 0.3 x 0.3 x 0.3 x 0.7 = 0.0189, or approximately 1.89%.  The probability of not getting a strike is the complement of getting a strike, which is 1 - 0.3 = 0.7.

Know more about probability here:

https://brainly.com/question/30034780

#SPJ11

Calculating the highest potential profits, manager achieve by changing revenue and cost variables in an optimization analysis. So, correct option is D.

A manager can achieve the calculation of the highest potential profits by changing revenue and cost variables in an optimization analysis. Optimization analysis involves identifying the best combination of values for a set of decision variables subject to certain constraints.

In the case of revenue and cost variables, a manager can use optimization analysis to find the combination of values that will result in the highest profit for the business, while taking into account any constraints such as production capacity or budget limitations.

By varying revenue and cost variables, a manager can identify the optimal price to charge for a product or service, the optimal level of production, the optimal use of resources, and the optimal allocation of budget among different activities.

This information can be used to make informed decisions about product pricing, marketing strategies, production schedules, and resource allocation, among other things.

By maximizing profits through optimization analysis, a manager can increase the financial health and sustainability of the business, which can lead to growth, increased employee benefits, and overall success.

Therefore, the correct answer to this question is d).

To learn more about optimization click on,

https://brainly.com/question/28188389

#SPJ4

An advantage of making a part rather than buying it is d. Higher quality and lower cost because the supplier company enjoys economies of scale

Making a portion in-house refers to a business producing a product or component directly as opposed to acquiring it from a third party vendor. By manufacturing a part in-house, an enterprise can control the quality and timing of the production process and react more rapidly to changes in demand or design. This strategy can give a business greater control over the production process and enhance economies of scale

A business can safeguard its intellectual property and stop rivals from using its confidential technology or know-how by manufacturing a component in-house. Additionally, by producing a part internally, a business can make sure it adheres to its quality standards and specifications and can more easily integrate customer input and changes.

Complete Question:

Which of the following may be an advantage of making a part rather than buying it?

.a smoother flow of parts and materials for production

b. less dependence on outside suppliers

c. more dependence on suppliers

d. higher quality and lower cost because the supplier company enjoys economies of scale

Read more about economies of scale on:

https://brainly.com/question/780900

#SPJ4

Based on the given information, it appears that the cross-price elasticity of demand for soda is -3. This means that a 10 percent decrease in the price of potato chips has caused a 30 percent increase in the quantity of soda demanded.

The negative sign indicates an inverse relationship between the two goods, where a decrease in the price of one good results in an increase in the quantity demanded of the other. However, the elasticity of demand for potato chips cannot be determined with the given information, as only the percentage change in price and quantity demanded for soda is provided.

Elasticity of demand is a concept in economics that measures the responsiveness of demand for a product or service to changes in its price or other related factors. When the demand for a product or service is elastic, it means that a small change in price leads to a significant change in quantity demanded, while inelastic demand means that a change in price has little impact on the quantity demanded.

To learn more about Elasticity of demand, visit here

https://brainly.com/question/30704413

#SPJ4

The actions taken by the officers and directors of MGC were not ethical. As they bought their own shares just a week before announcing the acquisition of their largest competitor which leads to unfairness and manipulative behavior.

As per the given scenario, the mammoth global corporation (MGC) acquired 140,000 shares of its own stock exactly one week prior to announcing the acquisition of the bigger group, inc, its largest competitor.

The acquisition is expected to increase its market share as well as its short-term and long-term profitability. But, in my opinion, the officers and directors of MGC behaved unethically.

Following are the reasons to support my opinion:

Reasons for unethical behavior: MGC knew about the acquisition of the bigger group before it was announced to the public.

Therefore, purchasing its own shares just a week before announcing the acquisition of its largest competitor seems manipulative and unethical.

This could lead to the possibility that the management of MGC knew of the acquisition before it was made public and therefore took advantage of this knowledge to acquire its own shares, which is against the principle of fairness.

To know more about director refer to-

brainly.com/question/14279294#
#SPJ11

The transaction in which an owner of an asset sells it and immediately rents it back from the new owner is called a sale and leaseback transaction.

In this type of transaction, the seller of the asset (the original owner) sells it to a buyer and simultaneously leases it back from the buyer. The leaseback agreement typically includes terms such as the rental payment, duration of the lease, and any maintenance or repair responsibilities.

The seller benefits from the transaction by receiving cash from the sale of the asset, which can be used for other purposes, while still retaining the use of the asset through the leaseback agreement. The buyer benefits from the transaction by acquiring an asset that generates rental income, with the potential for capital gains upon the eventual sale of the asset.

To know more about  transaction Here

https://brainly.com/question/1016861

#SPJ4