Answer:
c. $1,300 gain
Explanation:
In this scenario, Susan recognized a $1,300 gain on this sale. This is because Susan originally purchased the stock for a total price of $6,000. When she sold the stock, she sold it for a higher price than what she originally paid for it therefore recognizing a gain. To calculate this gain we simply subtract her initial purchase price from her selling price of the stock which would give us a $1,300 gain.
$7,300 - $6,000 = $1,300
Answer: b. Harold is not required to recognize gross income but must reduce his cost basis in the land to $130,000.
Explanation:
When Harold bought the land for $150,000 he acquired a basis of $150,000 in the land. Due to Jewel's cash problems, he managed to pay $20,000 less for the land.
For tax reporting purposes, he need not recognize gross income but he must reflect that he acquired the land for $20,000 less in his basis for the land thereby reducing the basis to $130,000.
Identify hazards to the force
Answer:
1. The GDP deflator for this year is calculated by dividing the<u> Value of all goods and services produced in the economy this year</u> using <u>this year's prices</u> by the <u>Value of all goods and services produced in the economy in the base year </u> using <u>the base year's prices</u> and multiplying by 100.
However, the CPI reflects only the prices of all goods and services<u> bought by consumers</u>.
2. a. A decrease in the price of a Chinese-made car that is popular among U.S. consumers. <u>Affects CPI. </u>
This affects CPI because the CPI reflects only the prices of goods and services purchased by customers.
b. An increase in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing, made in the U.S., but not bought by U.S. consumers. <u>Affects GDP Deflator.</u>
This is a good produced in the United States so it will affect the GDP Deflator as that deals with GDP.