There is a factory that is dumping toxic waste into a river where a resort is located downstream. At the moment the factory is not filtering the water that it dumps into the river. There is a filter it could install that would remove a significant amount of the toxic elements from the water before it is dumped in the river. The factory and the resort have each assessed the situation and come up with the following data:
Gains to: No Factory Factory with filter Factory with no filter
Factory $0/day $700/day $800/day
Resort $400/day $250/day $100/day
1. If the factory is given ownership of the river, what choice will it make?
2. How much would the resort be willing to pay to get the factory to install the filter?
3. How about to get the factory to move from it current location on the river?
4. What will be their agreement and will the factory accept?
5. If the resort is given ownership of the river, what choice will it make?
6. How much would the factory be wiling to pay to get the resort to make another choice?

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.