In Early 2019, Ben Sold a Yacht, Held for 9

question 115

Essay

In early 2019, Ben sold a yacht, held for 9 months and for pleasure, for a $5,000 gain. Concerned about offsetting the gain before year-end, Ben is considering selling one of the following-each of which would yield a $5,000 loss:
∙ Houseboat used for recreation.
∙ Truck used in business.
∙ Stock investment held for 13 months.
Evaluate each choice.

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Definitions:

Shadow Price

An economic concept representing the implicit value of a resource that is not directly priced in the market.

Solver

A tool or algorithm used to find solutions to mathematical problems or optimize certain processes.

Optimal Solutions

Solutions that are the best possible under a given set of constraints or conditions.

Linear Optimization Models

These are mathematical models used to find the best outcome, such as maximum profit or lowest cost, under given constraints by using linear equations.