Martin and Joe Are Equal Partners in Ferrell Company In Addition to His Ferrell Company Earnings,Martin Has Other Income

question 58

Multiple Choice

Martin and Joe are equal partners in Ferrell Company.For the current year,Ferrell Company reports the following items of income and expense:
$\begin{array}{lr}\text { Sales revenues } & \$ 500,000 \\\text { Long-term capital gains } & 14,000 \\\text { Short-term capital losses } & (10,000) \\\text { Trade and business expenses } & (200,000) \\\text { Limited partnership loss } & (50,000) \\\text { Taxable income } & \$ 254,000\end{array}$
In addition to his Ferrell Company earnings,Martin has other income of $35,000.Included in the $35,000 is a $10,000 loss from the sale of land held as an investment.Martin's adjusted gross income is:

• A)$162,000
• B)$167,000
• C)$172,000
• D)$187,000
• E)$192,000

Analyze the impact of time on elasticity for both supply and demand.

Recognize the relationship between price changes and total revenue in the context of elasticity.

Understand the factors affecting the elasticity of supply.

Identify the characteristics of goods that affect their price elasticity of demand.

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Definitions:

Trial Closes

Techniques used in sales to ask potential customers for a decision on a minor aspect of a purchase, used to gauge the readiness for the final buy.

Presentation

A formal display or demonstration of a subject, often involving spoken words and visual aids, to convey information to an audience.

Personal-Selling Process

a direct marketing approach where salespersons use personal contact with potential buyers to understand their needs and offer solutions in the form of products or services.

Customer Satisfaction

A state that is achieved when companies meet the needs and expectations customers have for their goods or services.