Claude purchased raw land three years ago for $2,500,000 to develop into lots and sell to individuals planning to build their dream homes. claude intended to treat this property as inventory, like his other development properties. before completing the development of the property, however, he decided to contribute it to south peak investors llc when it was worth $3,700,000, in exchange for a 10 percent capital and profits interest. south peak’s strategy is to hold land for investment purposes only and then sell it later at a gain. a. if south peak sells the property for $3,890,000 four years after claude’s contribution, how much gain or loss is recognized and what is its character? {hint: see §724.}

Thomas kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. thomas's fastest-moving inventory item has a demand of 6,000 units per year. the cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. the average ordering cost is $30 per order. it takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (this is a corporate operation, and the are 250 working days per year.)a) what is the eoq? b) what is the average inventory if the eoq is used? c) what is the optimal number of orders per year? d) what is the optimal number of days in between any two orders? e) what is the annual cost of ordering and holding inventory? f) what is the total annual inventory cost, including cost of the 6,000 units?