Marvin Is in the Business of Song Writing

question 98

Multiple Choice

Marvin is in the business of song writing.He writes jingles for web ads. He writes a song and sells it for a lump sum. He has:

• A)Sold a capital asset.
• B)Sold an ordinary asset.
• C)No gain or loss.
• D)An ordinary gain.
• E)b.and d.

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Definitions:

Economic Differences

Variations in economic conditions among regions or countries, affecting factors like inflation, currency strength, and purchasing power.

Asset Utilization

A metric that measures how efficiently a company uses its assets to generate revenue or achieve its business goals.

After-tax Interest Expense

The interest expense on debt after accounting for the effects of income tax savings.

EBI

Earnings Before Interest, a profitability measure that calculates a company's earnings before any interest expenses are deducted.