Answer and Explanation:
The actual gain or loss from the investment, including any suspended losses, should be determined when the tax payer disposes of his or her interest in a passive activity. According to the passive activity law, any gain realized on passive activity transition is viewed as passive and is initially compensated by suspended passive active losses from that activity.
If latest and suspended losses of passive activity exceed the gain accomplished, any loss from the activity for the tax year exceeding the net gain for the tax year from all passive activities shall be allowed to treat as a loss not arising from passive activity.
The computation of total gain and current deductible is shown below:-
Total gain = Net sales price - Adjusted basis amount
= $330,000 - 305,000
= $25,000
And Current deductible amount is
= Total gain earned - Suspended losses suffered
= $25,000 - $28,000
= $3,000
This amount represents the non passive amount
b. Deductible loss that may offset profit from passive investment that is realized in passive activity on the selling of partnership interest. The benefit realized in passive activity on selling of interest is regarded as passive.
Answer:
a) $200,000 to Jack
Explanation:
Data provided in the question
Life insurance policy amount of Marilyn Simms = $200,000
The primary beneficiary = Jack
The contingent beneficiaries = Their children
Now, the distribution of the policy could be taken by only Jack as he is her husband plus he is also a primary benefit of her life insurance policy,
So, the whole amount i.e $200,000 is distributed to Jack
Answer:
$47,100
Explanation:
The cost of goods available for sale is the sum of the opening balance and the net purchases during the period.
The net purchases is the difference between the total purchases and the allowances and discounts and returns.
Hence,
Cost of goods available for sale
= $15,000 + $40,000 - $2,000 - $500 - $5,700 + $300
= $47,100
Answer:
Fixed overhead application rate
= <u>Budgeted fixed overhead</u>
Budgeted direct labour hours
= <u>$200,000</u>
25,000 hours
= $8 per diect labour hour
Fixed overhead volume variance
= (Standard hours - Budgeted hours) x Fixed overhead application rate
$8,000 = (SH - 25,000) x $8
$8,000 = 8SH - 200,000
$8,000 + $200,000 = 8SH
$208,000 = 8SH
SH = $208,000/8
SH = 26,000 hours
Fixed manufacturing overhead application rate
= 26,000 hours x $8
= $208,000
The correct answer is C
Explanation:
In this case, we need to calculate the fixed overhead application rate, which is the ratio of budgeted fixed overhead to budgeted direct labour hours.
Then we will determine the standard hours from fixed overhead volume variance. Since budgeted hours and fixed overhead volume variance have been given, we need to make standard hours the subject of the formula.
Finally, we will calculate the fixed overhead applied, which is the product of fixed overhead application rate and standard hours.
Answer: Positive.
Explanation:
Suppose there are two related goods, i.e, Good A and Good B.
Cross price elasticity of demand refers to the responsiveness of demand for Good A if there is a change in the price of its related good, i.e, Good B.
Now, we are talking about gasoline and public transportation, suppose if there is increase in the price of gasoline then it will be costlier for the people to drive their own cars, as a result demand for public transportation increases.
There is a positive relationship between the gasoline and public transportation.
Hence, cross-price elasticity of demand between gasoline and public transportation is Positive.