Birch corp., a calendar-year corporation, was formed three years ago by its sole shareholder, james, who has operated it as an s corporation since its inception. last year, james made a direct loan to birch corp. in the amount of $7,700. birch corp. has paid the interest on the loan but has not yet paid any principal. (assume the loan qualifies as debt for tax purposes.) for the year, birch experienced a $26,200 business loss.

what amount of the loss clears the tax basis limitation, and what is james? s basis in his birch corp. stock and birch corp. debt in each of the following alternative scenarios?

at the beginning of the year, james's basis in his birch corp. stock was $47,900 and his basis in his birch corp. debt was $7,700.

Which of the following statements regarding the learning curve and economies of scale is accurate? answers: just as diseconomies of scale are presumed to exist if a firm gets too large, there is a corresponding increase in costs in the learning-curve model as the cumulative volume of production grows. where diseconomies of scale are presumed to exist if a firm gets too large, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows. where diseconomies of scale are presumed to exist if a firm gets too small, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows. just as diseconomies of scale are presumed to exist if a firm gets too small, there is a corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.

Your father offers you a choice of $120,000 in 11 years or $48,500 today. use appendix b as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. if money is discounted at 11 percent, what is the present value of the $120,000?

Adisadvantage of corporations is that shareholders have to pay on profits.