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yulyashka [42]
3 years ago
14

Peroni Corporation sold a parcel of land valued at $300,000. Its basis in the land was $250,000. For the land, Peroni received $

150,000 in cash in the current year and a note providing Peroni with $150,000 in the subsequent year. What is Peroni's recognized gain in the current and subsequent year, respectively?
a. $0, $50,000.
b. $10,000, $40,000.
c.$25,000, $25,000.
d. $50,000, $0.
e. None of the choices are correct.
Business
1 answer:
Reptile [31]3 years ago
3 0

Answer:

Correct option is C.

<u>$25,000, $25,000.</u>

Explanation:

Gross profit on sale = (300,000-250,000)/300,000 = 16.67%

Gain recognized in:

Year 1 = 150,000 * 16.67% = 25,000

Year 2 = 150,000 * 16.67% = 25,000

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Answer:

<h2>The specific identification method</h2>

a) matches each unit of inventory with its actual cost

d) would be beneficial to a company that makes fine jewelry

Explanation:

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4 0
3 years ago
Which of the following sentences use clear and correct pronoun references? Check all that apply.
balu736 [363]

Answer:

B.

C.

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Option A is incorrect because; it is not clear who is he and what he grabbed form the air. Further, it is also not clear who's her.

Option D is incorrect because; it is not clear who are they. And it is a grammar rule that, do not use “they” when referring to unspecified persons.

3 0
3 years ago
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The common stock of the Avalon Corporation has been trading in a narrow range around $40 per share for months, and you believe i
Monica [59]

Answer:

C. Sell a straddle

Explanation:

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and,

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a short straddle involves simultaneously selling a put option and call option with the same underlying asset, same exercise price and expiration date

By Selling a 3 month put option with exercise price of $40 one will get $3 (inflow of $3)

Simulatenously By Selling a 3 month call option with exercise of $40 one wiil get $4(inflow of $4)

Thus the total premium income of selling a straddle is $7

7 0
3 years ago
The contestable market model of oligopoly bases pricing and output decisions on:
taurus [48]
<span>The contestable market model of oligopoly bases pricing and output decisions on the threat of new entrants into the market. The oligopoly market form is where the market or industry is run by a small amount of sellers that can influence the price and other market factors.</span>
8 0
3 years ago
Jay, a single taxpayer, purchased an annulty to help provide income during his retirement. He paid $36,000 for the annuity that
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Answer:

d. All of the last 12 payments he received are taxable.

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4 0
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