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Delvig [45]
3 years ago
10

John owns a second home in Palm Springs, California. During the year he rented the home for $4,000 for 36 days and used the hous

e for 14 days during the summer. The house remained vacant during the remainder of the year. The expenses for the home included $5,000 in mortgage interest, $600 in property taxes, $900 for utilities and maintenance, and $3, 500 of depreciation. What is John's deductible rental loss, before considering the passive loss limitations? $200 $875 $3, 200 $3, 500 $0
Business
1 answer:
tekilochka [14]3 years ago
7 0

Answer:

Option (C) is correct.

Explanation:

Total expenses:

= mortgage interest + property tax + utilities and maintenance + Depreciation expense

= $5,000 + $600 +  $900 + $3,500

= $10,000

Proportionate rental expenses = Total expenses × \frac{36\ days}{(36 + 14) days}

Proportionate rental expenses = 10,000 × \frac{36\ days}{(36 + 14) days}

= $7,200

Rental Loss = Rental Income - Proportionate rental expenses

                   = $4,000 - $7,200

                   = -($3,200)

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statuscvo [17]

Answer: b. shoe-leather costs

Explanation:

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It is named shoe-leather costs as a play on words because it is assumed that the time and effort put will result in walking around alot and degrading the quality of your shoes.

3 0
3 years ago
What are the things found in a bank​
alexandr402 [8]

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4 0
3 years ago
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and
scoundrel [369]

Answer: Keynesian Economic Theory

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6 0
3 years ago
Jensen Manufacturing Corp wants to buy land for a distribution center in a new industrial park near Oakland International Airpor
slega [8]

Based on the information given regarding Jensen Manufacturing Corp, it can be deduced that it's a partially disclosed principal.

A partially disclosed principal simply means a principal whose agent reveals that he has a principal but the true identity of the person isn't known.

From the information given, since Jensen Manufacturing Corp wants to buy land for a distribution center in a new industrial park near Oakland International Airport and made their offer in the name of Western Associates, LLC so as to not alert their competitors of the attempted purchase. This is a partially disclosed principal.

Learn more about principals on:

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3 0
2 years ago
Bramble Corp. received $93000 in cash and a used computer with a fair value of $348000 from Blossom Company for Bramble Corp.'s
fredd [130]

Answer:

A. $27,600

B. $348000

Explanation:

A. Calculation for How much gain should Bramble recognize on this exchange

Recognized gain=$441000-$413400

Recognized gain=$27,600

Therefore Bramble recognize on this exchange is $27,600

B. Based on the information given we were told that the company received a used computer that has a fair value of the amount of $348000 from Blossom Company which means that the fair value amount of $348000 is what the acquired computer be recorded.

6 0
3 years ago
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