All categories

3 years ago

Which of the following is a deductible loss for income tax purposes?

Business

1 answer:

shutvik [7]3 years ago

6 0

Answer:

d. Net long-term capital losses in excess of $3,000.

Explanation:

A net long-term capital losses in excess of $3,000 is a deductible loss for income tax purposes.

For instance, in a tax year, if an individual has up to $3,000 of net long-term capital losses, this would be considered a form of income rather than a capital gain.

Furthermore, if an individual accrues a net long-term capital losses in excess of $3,000, this loss is deductible and are carried over indefinitely to subsequent tax payments in the future.

You might be interested in

Jenna opened a successful restaurant. One night, after the restaurant had closed, a fire started when the electrical system malf

Vinvika [58]

Answer:

Indirect loss

Explanation:

The lost profits are an example of indirect loss.

Indirect loss also known as consequential loss is a loss sustained by a business owner when it is unable to use its assets for the intended purpose. Indirect loss is as a result of damage caused by fire, flood, earthquake etc.

An insured business is able to recover part of indirect loss but if the business is not insured, then it will bear the consequences alone.

6 0

3 years ago

Select True or False.

m_a_m_a [10]

Answer:

False.

Explanation:

Wholesalers are used to sell consumer products.. but not business products.

6 0

2 years ago

An australian manufacturer of surfboards wants to increase awareness of its brand in the u.s. market. a ____ plan to accomplish

NikAS [45]

Answer:

tactical

Explanation:

According to my research on different types of business approaches, I can say that based on the information provided within the question this would be considered a tactical plan. This is when a company sets into motion specifically designed short term actions to accomplish a certain goal. Which is what the surfboard manufacturer is doing by hosting a series of surfboard competitions to increase it's brand awareness.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0

4 years ago

E15-5 (Lump-Sum Sales of Stock with Preferred Stock) Dave Matthew Inc. issues 500 shares of $10 par value common stock and 100 s

OverLord2011 [107]

Answer:

See explanation section

Explanation:

Requirement A

Journal entry for the issuance when the market price of the common shares is $165 each -

Debit Cash (500 shares, $165 market value) $82,500

Credit Common Stock (500 shares, $10 par value) $5,000

Credit Paid-in-capital in excess of Par/Additional paid-in-capital, Common stock (500 shares, $165 - $10 = $155 per share in excess of par) $77,500

Journal entry for the issuance when the market price of the preferred share is $230 each -

Debit Cash (100 shares, $230 market value) $23,000

Credit Preferred Stock (100 shares, $100 par value) $10,000

Credit Paid-in-capital in excess of Par/Additional paid-in-capital, Preferred stock (100 shares, $230 - $100 = $130 per share in excess of par) $13,000

Requirement B

Journal entry for the issuance when only the market price of the common stock is $170 per share -

Debit Cash (500 shares, $170 market value) $85,000

Credit Common Stock (500 shares, $10 par value) $5,000

Credit Paid-in-capital in excess of Par/Additional paid-in-capital, Common stock (500 shares, $170 - $10 = $160 per share in excess of par) $80,000

As preferred stock's market price is not given, the par value becomes the market value for the preferred stock. The journal to entry to record preferred stock -

Debit Cash (100 shares, $100 market value) $10,000

Credit Preferred Stock (100 shares, $100 par value) $10,000

5 0

3 years ago

Neoclassical Model of Investment" (1 point): In class, we discussed the idea of net investment, and how it could change in respo

statuscvo [17]

Answer:

Take Note that the model has following relationship between investment and factors that affect it

Int = F(Ye, it, d, πe, tc, Kt-1)

Net investment is a function of

Expected output (Ye),

Rental or user cost of capital (such as nominal interest rate it),

Expected inflation (πe),

Corporate tax/ investment tax credit,

Existing stock of capital

For a given stock of capital,

A rise in expected output (Ye), increases investment

A rise in expected inflation (πe) increases investment

A rise in the investment tax credit increases investment.

A rise in nominal/real rate of interest decreases investment

A rise in corporate income tax decreases net investment

(a) Anti-inflationary monetary policy raises the real interest rate (r ↑). As mentioned, it will depress net investment as firms have to pay a higher rate of interest on the investment made. Such policy increases rental cost of capital and it will decrease the desired capital stock.

b) An earthquake destroys part of the capital stock (K ↓). This will reduce net investment, increases rental cost of capital and it will decrease the desired capital stock.

(c) Immigration of foreign workers increases the size of the labor force (L ↑). With more workers to share the capital stock, marginal producivity of capital rises and so net investment increases. This decreases rental cost of capital and it will increase the desired capital stock.

(d) Advances in computer technology make production more efficient (A ). This causes the net investment to increase as the marginal productivity of capital will increase. This decreases rental cost of capital and it will increase the desired capital stock.

Explanation:

6 0

3 years ago