Jimmy has fallen on hard times recently. Last year he borrowed $343,000 and added an additional $73,000 of his own funds to purchase $416,000 of undeveloped real estate. This year the value of the real estate dropped dramatically, and Jimmy’s lender agreed to reduce the loan amount to $316,000. For each of the following independent situations, indicate the amount Jimmy must include in gross income: (Leave no answer blank. Enter zero if applicable.)
a. The real estate is worth $253,800 and Jimmy has no other assets or liabilities.
b. The real estate is worth $325,100 and Jimmy has no other assets or liabilities.
c. The real estate is worth $277,800 and Jimmy has $47,200 in other assets but no other liabilities.

Linda is starting a new cosmetic and clothing business and would like to make a net profit of approximately 10% after paying all the expenses, which include merchandise cost, store rent, employees' salary, and electricity cost for the store.

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.