Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

Yariv is employed by a company, GreenCar, that sells environmentally-friendly cars. Yariv loves driving (and the environment), and has considered purchasing his own GreenCar for some time. The cars sell on the retail market for $40,000 each, and cost GreenCar $25,000 each to manufacture.

GreenCar agrees to sell Yariv a car at a discount, and to allow him to pay for it in installments of $8,000 a year, for four years. Yariv purchases the car.

After three years, Yariv decides to leave GreenCar. (He has paid $24,000 for the car by the time he leaves.) Recognizing that Yariv has been a loyal employee, GreenCar waives the need for Yariv to pay the last installment.

Yariv, having decided to give up driving altogether, sells the car to Marie, his sister, for $20,000.

What are the tax consequences for Yariv and GreenCar? Make sure to include statutory or case authority to support your answer.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M938933

Have any Question? 


Related Questions in Microeconomics

Principles of economics1 which statement is truea today

Principles of Economics 1. Which statement is true? A) Today more workers in the U.S. are members of labor unions than any time in our history. B) Today labor unions are weaker than any time in the last 100 years. C) No ...

Assignment key concepts of economicswrite a three to four

Assignment: Key Concepts of Economics Write a three to four page paper in which you: 1. Identify at least four key points of a relevant economic article from either the Strayer Library or a newspaper. The article must de ...

The united states has a great consumer demand for health

The United States has a great consumer demand for health care services. The supply of these services or products, such as new medications or medical equipment, is affected by many factors. Select a service or product tha ...

Answer these two questionthese is 2 econ question you need

Answer these two question These is 2 econ question, you need answer these by reading the article . you need give me the answer in 1 hour 1. Explain how settled agriculture led to civilization (meaning economic specializa ...

Assignmentconcepts you should knowa organisational

Assignment Concepts you should know: a. Organisational Structure b. Physical structure of organisations c. Bureaucracy d. Organic versus Mechanistic organisational structures e. Symbolic conditioning f. Routine and impro ...

Question should insider directors constitute the majority

Question: Should insider directors constitute the majority of a corporate board instead of investors?

Assignmentquestion 1 how is a project baseline used to

Assignment Question 1) How is a project baseline used to guide the execution of the project's work, to evaluate progress and performance, and to control the project? Also, as you continue to think about monitoring and co ...

Question - determined that the cost of supplies on hand was

Question - Determined that the cost of supplies on hand was Tk. 1500 and Tk. 1200 of supplies had been used during the month.

To begin you initial post research one of the health

To begin you initial post, research one of the health profession licensing agencies in your state. Analyze and comment on the role this professional licensing group plays in the creation of policy within the profession a ...

1 a consumers preference ordering over baskets of goods x1

1. A consumer's preference ordering over baskets of goods (x1, x2) includes the following: i) she is indifferent between (5, 90) and (35, 10); ii) she strictly prefers (20, 50) to (5, 90). Check whether convexity of pref ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate