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Fynjy0 [20]
2 years ago
13

On August 22, Year 4, Martha purchases a computer to use in her childcare business. She sells the computer on December 28, Year

4, for $2,000 when the machine has an adjusted tax basis of $1,700. What is the amount and character of the gain on the sale
Business
1 answer:
Lilit [14]2 years ago
3 0

The amount is $300  and character of the gain on the sale is ordinary  income.

<h3>Ordinary income</h3>

Using this formula

Gain on the sale=Cost of computer -Adjusted tax basis

Let plug in the formula

Gain on the sale=$2,000-$1,700

Gain on the sale=$300 (ordinary income)

Therefore the amount is $300  and character of the gain on the sale is ordinary  income.

Learn more about Ordinary income here:brainly.com/question/13793671

#SPJ1

You might be interested in
A photocopier cost $ 102 comma 000 when new and has accumulated depreciation of $ 93 comma 000. If the business discards this pl
vekshin1

Answer:

$9,000

Explanation:

The result is the Net Book Value (NBV) as the time when the photocopier is discarded. The formula for calculating the NBV is given as follows:

NBV = Cost of equipment - Accumulated depreciation

Since;

Photocopier cost = $102 comma 000 = $102,000

Accumulated depreciation = $ 93 comma 000 = $93,000

Therefore, the NBV for the photocopier can be obtained as using the NBV formula above as follows:

NBV = $102,000 - $93,000

        = $9,000

If the business just discard the photocopier without selling at a price as at the time of discard, the business has lost a total of $9,000 which is the NBV of the photocopier.

7 0
3 years ago
Which of the following is TRUE regarding the persuasive business​ message? A. The persuasive business message generally relies m
Leto [7]

Answer:

A

Explanation:

In this question, we are provided with options and we are asked to select which of these options is/are true.

First, we need to understand what is meant by the persuasive business message.

The persuasive message refers to a specific course of action in which a particular individual or entity is trying to convince the other party towards acting in a particular manner.

Now based on the options, we choose option A to be our answer. This is because, looking at the scope and mechanism of the persuasive business approach, it tends to speak to the other party by relying basically on the logical mechanics rather than on mere emotional appeal.

8 0
3 years ago
The following information pertains to Wald Corp.'s operations for the current year: Worldwide taxable income $300,000 U.S. sourc
denis-greek [22]

Answer:

The amount of foreign tax credit may Wald claim for the current year is $36,600

Explanation:

For computing the claim for the foreign tax credit, we have to do the proportionate of  U.S. income tax before foreign tax credit based on Foreign non-business-related interest, Other foreign sources taxable income to the Worldwide taxable income.  

In mathematically,  

Foreign tax credit based on non business-related which equals to

= (Foreign non business-related interest ÷ Worldwide taxable income) × U.S. income tax before foreign tax credit  

= ($30,000 ÷ $300,000) × $96,000

= $9,600

Foreign tax credit based on Other foreign source taxable income  which equals to

= (Other foreign source taxable income  ÷ Worldwide taxable income) × U.S. income tax before foreign tax credit  

= ($90,000 ÷ $300,000) × $96,000

= $28,800

The lower of $28,800 and $27,000 so, $27,000 as it includes the foreign income taxes paid  

So, The total amount of foreign tax credit equals to

= $9,600 + $27,000

= $36,600

8 0
3 years ago
An investor contributes $100,000 of cash to a partnership and signs a $200,000 recourse note. During the first year, the investo
dezoksy [38]

Answer:

net cash flow = $10000

Explanation:

given data

contributes cash = $100,000

partnership income = $80,000

debt service expense = $30,000

interest = $20,000

principal amortization = $10,000

operating expenses = $40,000

depreciation expense = $65,000

solution

we know that Depreciation is not cash flow so we will exclude it

so for cash flow get here as =  income minus all cash cost

so

cash flow = income - interest expenses - operating expenses  .........1

cash flow = $80,000 - $20,000 - $40,000

cash flow = $20,000

and here additional paid out = $10,000 for reduce loan balance

so as that net cash flow = $20000 - $10000

net cash flow = $10000

3 0
3 years ago
Manchester Company sells equipment on June 1, 2021, for $222,400 cash. Manchester incurred $1,280 of removal and selling costs o
drek231 [11]

Answer and Explanation:

The journal entries are as follows:

But before that the accumulated depreciation for 3 years is as follows:

Cost $400,000  

Less: Residual value $64,000

Depreciable cost $336,000

Divide by Useful life 10  

Annual Depreciation $33,600  

Accumulated depreciation for 3 years $100,800 ($33,600 × 3 years)

Now the journal entries are as follows:

a.

On June 1, 2021        

Depreciation expense $14,000 ($33,600 × 5 months ÷ 12 months)

       To Accumulated Depreciation $14,000

(Being depreciation expense is recorded)

On June 1,2021        

Accumulated Depreciation $114,800 ($100,800 + $14,000)

Cash $221,120 ($222,400 - $1,280)

Loss on Disposal $64,080

       To Equipment $400,000

(Being the disposal of an asset is recorded)

b.

On June 1, 2021        

Depreciation expense $14,000 ($33,600 × 5 months ÷ 12 months)

       To Accumulated Depreciation $14,000

(Being depreciation expense is recorded)

On June 1,2021        

Accumulated Depreciation $114,800 ($100,800 + $14,000)

Loss on Disposal $285,200 ($221,120 + $64,080)

       To Equipment $400,000

(Being the disposal of an asset is recorded)

7 0
3 years ago
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