Ritz products's materials manager, tej dhakar, must determine whether to make or buy a new semiconductor for the wrist tv that the firm is about to produce. four million units are expected to be produced over the life cycle. if the product is made, start-up and production costs of the make decision total $3 million, with a probability of 0.3 that the product will be satisfactory and a 0.7 probability that it will not. if the product is not satisfactory, the firm will have to reevaluate the decision. if the decision is reevaluated, the choice will be whether to spend another $3 million to redesign the semiconductor or to purchase. likelihood of success the second time that the make decision is made is 0.8. if the second make decision also fails, the firm must purchase. regardless of when the purchase takes place, dhakar's best judgment of cost is that ritz will pay $0.40 for each purchased semiconductor plus $1 million in vendor development cost.

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate.the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received.c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.