Green CoTransferred a Small Piece of Land to One of Its

question 2

Multiple Choice

Green Co.transferred a small piece of land to one of its shareholders as a dividend in kind.The land originally cost $50,000 and had a fair market value of $175,000 at the time of the transfer.The corporation will realize ________,and the shareholder will realize ________.

• A) no tax effect; a dividend of $125,000.
• B) a dividend of $125,000; no tax effect.
• C) a capital gain of $125,000; a dividend of $175,000.
• D) a capital gain of $50,000; a dividend of $125,000.

Understand how monopolists determine the profit-maximizing level of output and price.

Identify scenarios in which monopolists experience economic profits or losses.

Understand the relationship between average total cost, marginal cost, and the pricing strategies of a monopolist.

Understand the relationship between marginal cost and selling price for profit maximization in monopolies.

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Definitions:

Telephone Keypad

An assembly of push-buttons on a telephone, each button representing a set of letters and numbers, used for dialing and typing.

Alphabetically Sequenced Letters

An ordered arrangement of letters based on the conventional sequence of the alphabet.

Encoding Failure

A situation in which the brain fails to create a memory link for information, making it difficult to remember at a later time.

Seconds

Units of time that are equal to one sixtieth of a minute.