All categories

1 year ago

A _____ is applied to reduce estate tax when a large amount of real estate is for sale in one area.

1 answer:

8 0

A <u>marketability discount</u> is applied to reduce estate tax when a large amount of real estate is for sale in one area.

When evaluating private enterprises, the discount for lack of marketability (DLOM) is used. It has to do with the business not having a publicly listed stock on a stock market.

Since shares of publicly listed corporations may be purchased or sold in a controlled marketplace, these companies are seen to have a "market." Private businesses lack a centralised market and are thought to have smaller markets. In order to represent the lack of a market, private firms should, in principle, be valued lower than public companies, all else being equal.

To know more about estate tax refer here:

brainly.com/question/6362495

#SPJ4

You might be interested in

All Seasons, Inc. ordered $5,000 worth of Christmas decorations from Santa, Inc. The shipment of decorations was to arrive no la

Leya [2.2K]

Answer:

C. Compensatory damages and consequential damages.

Explanation:

The reason is that the company can only sue Santa for its compensatory damage of paying 15% extra and consequential damages which are only claimable if the party to contract knows that not performing the contract will contribute to consequential damages which are here losses of sales which amount to 25% of sales.

5 0

3 years ago

Read 2 more answers

Which of the following statements about transportation in the United States is NOT true?

yaroslaw [1]

Answer:

The cost of gasoline is higher in the U.S. than anywhere else in the world.

Explanation:

3 0

2 years ago

Manuel works for a very large company that sells stocks to shareholders. This is an advantage for which type of business structu

Rom4ik [11]

Answer:

Corporation

Explanation:

A corporation is a business ownership structure where the business is considered a legal entity separate from the owners. A corporation is subdivided into small units known as shares. Owning a share implies owning part of the corporation. Shareholders own the shares and the corporation.

The shares of a public corporation can be acquired by purchasing them at the security exchange market. Anyone can purchase shares and become a shareholder.

3 0

3 years ago

Does the fact that your bank keeps only a fraction of your account balance in reserve worry you? Why don't people rush to the ba

m_a_m_a [10]

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. Is an opinion what contains the image. Judge it like it is.

4 0

3 years ago

Carr Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of interest. The carrying valu

Brrunno [24]

Answer: A. debit of $3,745 to Premium on Bonds Payable.

Explanation:

The carrying value of the bonds at redemption date is $103,745.

The bonds retired however, had a face value of $100,000.

The company therefore paid a premium on these bonds which is:

= 103,745 - 100,000

= $3,745

This amount will be debited to the Premium on Bonds Payable account.

4 0

2 years ago