On January 20 of the current year, Zealand and Menandez form ZM LLC. Their contributions to the LLC are as follows: Adjusted Basis Fair Market Value From Zealand: Cash $82,000 $82,000 Accounts receivable $0 $214,000 Inventory $19,000 $26,000 From Menandez: Cash $201,000 $201,000 Temporary Investments $121,000 $121,000 Within 30 days of formation, ZM collects the receivables and sells the inventory for $26,000 cash. ZM realized the following income in the current year from these transactions: a. Ordinary income of $fill in the blank 2 from collecting cash basis accounts receivable. b. Ordinary income of $fill in the blank 4 from sale of inventory.

Ordinary Income of $214,000 from collecting cash basis accounts receivable

Ordinary Income of $7,000 from sale of Inventory.

Explanation:

a. Adjusted basis of Accounts receivable = $0

Fair Market Value of Accounts Receivable = $214,000

Cash realized from Accounts Receivable = $214,000

Ordinary Income from collecting cash basis accounts receivable = $214,000

It is ordinary income since the Accounts receivable are taxed only after they are collected.

b. Adjusted basis of Inventory = $19,000

Fair Market Value of Inventory = $26,000

Cash realized from sale of Inventory = $26,000

Ordinary Income from sale of Inventory = Cash received from sale - Adjusted basis = $26,000 - $19,000  = $7,000

It is ordinary income since the Inventory only recognizes the adjusted basis i.e. the amount paid for inventory and any income recognized on sale of inventory is taxed accordingly.

consumer credit. an advantage is that it allows consumers to afford expensive goods and services now, increasing their standard of living. however, a disadvantage is that it creates a trap for debt, if people do not have self control, they may see themselves filing personal bankruptcy.

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.