How long do you have to be employed to buy a house.

Oscar owns a building that is destroyed in a hurricane. His adjusted basis in the building before the hurricane is $130,000. His

damaskus [11]

Answer:

That is $2,000 loss

Explanation:

After the hurricane Oscar received $140,000 for his loss, the adjusted basis for his property was $130,000 so he had a gain of 140,000- 130,000=$10,000.

According to Sec. 1033(a)(2) since the new property that was built (the replacement) was similar we will recognise the amount received from the insurance company ($140,000) to the extent that it pays for the replacement property.

That is

Gain or loss = amount paid by insurance company- cost of replacement property

Gain or loss= 140,000- 142,000

Gain or loss= -$2,000

That is $2,000 loss

8 0

3 years ago

Sandstone, Inc. is considering a fourminusyear project that has an initial afterminustax outlay or afterminustax cost of $80,0

mote1985 [20]

Answer:

NPV = $28020.99

so he accept the this project as NPV value is positive

Explanation:

given data

CF 0 = $80000

CF 1 = $40000

CF 2 = $40000

CF 3 = $30000

CF 4 = $30000

discount rate r = 12%

solution

we get here Net present value (NPV) of the project that is total sum of the current value of all flow that is express as

NPV = $- CF 0 + \frac{CF1}{(1 + r)} + \frac{CF 2}{(1 + r)^2} + \frac{CF3}{( 1+ r)^3} + \frac{CF4}{(1+r)^4}$ ...........................1

put here value and we get

NPV = $- 80000 + \frac{40000}{(1+ 0.12)} + \frac{40000}{(1+ 0.12)^2} + \frac{30000}{( 1 + 0.12)^3} + \frac{30000}{(1+ 0.12)^4}$

solve it we get

NPV = - 80000 + 35714.29 + 31887.76 + 21353.41 + 19065.54

NPV = $28020.99

so he accept the this project as NPV value is positive

4 0

3 years ago

You are evaluating the balance sheet for Cypress Corporation. From the balance sheet you find the following balances:Cash and ma

s344n2d4d5 [400]

Answer:

The answer is $668,000

Explanation:

Net working capital = current asset - current liability.

Under current asset, we have Cash and marketable securities($610,000) Accounts receivable($810,000) Inventory($510,000)

And under current liability, we have

Accrued wages and taxes($51,000) Accounts payable($201,000), Notes payable($1,010,000)

Current asset = $610,000+$510,000+$810,000 = $1,930,000

Current liability = $51,000+$201,000+$1,010,000=$1,262,000

Therefore, net working capital =$1,930,000 - $1,262,000

=$668,000

4 0

3 years ago

Gourmet Pets is an innovative competitor in the billion-dollar pet food industry. In fact, two of its products, Kitty Sirloin an

miss Akunina [59]

Answer:

The answer is product differentiation.

Explanation:

The company faces no competition in this market segment so it plans to charge a high price for the product. The company currently markets McDog T-bone, Lapdog Lunchtreats, Rover's Potroast, and Puppy Porterhouse in the dog food market. Prime Cuts will be an addition to the company's __product differentiation. _________ in the dog food market.

7 0

3 years ago

Several years ago, The Wall Street Journal reported that the winner of the Massachusetts State Lottery prize had the misfortune

lorasvet [3.4K]

Answer:

the present value of the annuity = $4,523,638

Explanation:

this is an ordinary annuity:

annual payment = $9,420,713 / 20 = $471,035.65

number of periods = 19 periods

interest rate = 8%

therefore, the present value annuity factor = 9.6036

the present value of the annuity = $471,035.65 x 9.6036 = $4,523,637.97 ≈ $4,523,638

4 0

3 years ago