The Data in the Table Below Assumes That with the Same

question 55

Multiple Choice

The data in the table below assumes that with the same quantity of resources, both Australia and Philippines produces food and computers.Australia can make 1, 000 computers or 2, 000 units of food in a day, and the Philippines can make 200 computers or 1, 200 units of food in a day. Table 34.2 According to Table 34.2, what is the opportunity cost of 1 computer in Australia?

• A)half a unit of food
• B)one-sixth of a unit of food
• C)1 unit of food
• D)6 units of food
• E)2 units of food

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Definitions:

Recognized Gain

is the portion of a gain that is subject to taxation under the tax laws after the sale or exchange of an asset.

Basis

The original value or cost of an asset or investment for tax purposes, crucial for calculating gain or loss on disposition.

Like-Kind Exchange

A tax deferment strategy where an asset is exchanged for another similar asset, deferring capital gains taxes.

Identified

Specified or determined, often used in contexts where certain items, transactions, or options are selected for specific treatment or action.