1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nataly_w [17]
3 years ago
10

Hazel owns an event planning company that specializes in very high-end events. Several years ago, Hazel purchased a magnificent

chocolate fountain for $3,000 and has since taken $1,200 in depreciation deductions on the fountain. Hazel is now ready to replace the fountain with tools for creating ice sculptures, but she is not sure what the tax consequences of selling the fountain will be. Which of the following statements is true regarding the tax consequences of selling the fountain?A. If Hazel sells the chocolate fountain for $1,800, she will have a $1,200 ordinary loss.B. If Hazel sells the chocolate fountain for $1,700, she will have a $100 capital loss.C. If Hazel sells the chocolate fountain for $2,000, she will have an ordinary gain of $200 and no capital gain.D. If Hazel sells the choclate fountain for $3,300, she will have a $1,500 capital gain.
Business
1 answer:
Nastasia [14]3 years ago
6 0

Answer:

D. If Hazel sells the chocolate fountain for $3,300, she will have a $1,500 capital gain.

Explanation:

I´m assuming that Hazel is a person that owns this event planning company.

The current book value of the chocolate fountain = purchase cost - accumulated depreciation = $3,000 - $1,200 = $1,800

If the chocolate fountain (or any asset) is sold at a higher price than book value, then a capital gain must be recognized. If the chocolate fountain is sold at a lower price than book value, then a capital loss should be recognized.

$3,300 (selling price) - $1,800 (book value) = $1,500 capital gain

You might be interested in
The federal reserve's target rate for the federal funds rate is an extra policy tool for the central bank, in addition to and in
blondinia [14]

Answer:

Commits the fed to set a particular money supply so that it hits the announced target

Explanation:

The target rate and money supply need to be alligned for the FED to achieve its goals.

8 0
3 years ago
Higher customer satisfaction and more efficient use of resources are impacts of businesses that operate with a _______
yKpoI14uk [10]

Answer:

customer service motive

5 0
2 years ago
Read 2 more answers
To guide cost allocation decisions, the ability to bear criterion ________.
hoa [83]

Answer:

the answer is D

Explanation:

Disagree. Cost accounting data plays a key role in many management planning and control decisions.  The division president will be able to make better operating and strategy decisions by being involved in key decisions about cost pools and cost allocation bases. Such an understanding, for example, can help the division president evaluate the profitability of different customers The salary of a plant security guard would be a direct cost when the cost object is the security department of the plant.  It would be an indirect cost when the cost object is a product. Exhibit 14-1 outlines four purposes for allocating costs:

1.   To provide information for economic decisions.

2.   To motivate managers and employees.

3.   To justify costs or compute reimbursement.

4.   To measure income and assets for reporting to external parties.

Exhibit 14-2 lists four criteria used to guide cost allocation decisions:

1.   Cause and effect.

2.   Benefits received.

3.   Fairness or equity.

Ability to bear. The cause-and-effect criterion and the benefits-received criterion are the dominant criteria when the purpose of the allocation is related to the economic decision purpose or the motivation purpose. Using the levels approach introduced in Chapter 7, the salesvolume variance is a Level 2 variance. By sequencing through Level 3 (salesmix and salesquantity variances) and then Level 4 (marketsize and marketshare variances), managers can gain insight into the causes of a specific sales-volume variance caused by changes in the mix and quantity of the products sold as well as changes in market size and market share. The total salesmix variance arises from differences in the budgeted contribution margin of the actual and budgeted sales mix. The composite unit concept enables the effect of individual product changes to be summarized in a single intuitive number by using weights based on the mix of individual units in the actual and budgeted mix of products sold. A favorable salesquantity variance arises because the actual units of all products sold exceed the budgeted units of all products sold. The salesquantity variance can be decomposed into (a) a marketsize variance (because the actual total market size in units is different from the budgeted market size in units), and (b) a market share variance (because the actual market share of a company is different from the budgeted market share of a company). Both variances use the budgeted average contribution margin per unit.

8 0
3 years ago
A new sports car sells for $40,000. The value of the car decreases by 12% annually. After how many years will it be worth half o
Marysya12 [62]

Answer:

n= 6.11 years

Explanation:

Giving the following information:

Present value= $40,000

Future value= $20,000

Decrease rate= 0.12

<u>To calculate the number of years for the car to reach a value of $20,000; we need to use the following formula:</u>

n= ln(FV/PV) / ln(1+i)

n= ln(20,000/40,000) / ln(1.12)

n= 6.11 years

8 0
2 years ago
Why do we need to know about plate tectonics?
Scrat [10]
Tectonics are the driving force for all geology.
5 0
3 years ago
Other questions:
  • On January 1, 2017, Dawson, Incorporated, paid $100,000 for a 30% interest in Sacco Corporation. This investee had assets with a
    15·1 answer
  • the butler county tax assessor determines that the market value of greg wilsons home is $123000. the rate of assessment in butle
    8·1 answer
  • Help please!
    8·1 answer
  • Gerald has a great deal of expertise about parakeets. he used to work in a pet store that sold over twenty different types of bi
    7·1 answer
  • g You invest 56% of your money in Stock A and the rest in Stock B. The standard deviation of annual returns is 49% for Stock A a
    5·1 answer
  • USA Airlines uses the following performance measures. Classify each of the performance measures below into the most likely balan
    5·1 answer
  • One of the easiest methods of diversifying away firm-specific risks is to: Multiple Choice build a portfolio with 40 to 55 indiv
    10·1 answer
  • A dot plot titled Miles Emilia Ran Each Week going from 1 to 6. 1 has 2 dots, 2 has 3 dots, 3 has 2 dots, 4 has 2 dots, 5 has 3
    15·2 answers
  • Assuming that all entries have been posted, prepare correcting entries for each of the following errors.
    14·1 answer
  • Assume that the weekly payroll of Hunter Hardware, Inc., is $1,000. The end of the year, December 31, falls on Tuesday. Hunter H
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!