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marin [14]
3 years ago
8

During the year, Sara sold a capital asset at a loss of $2,000. She had held the asset as an investment. This is the only capita

l asset she sold during the year. Is her deduction for this capital loss a deduction for or a deduction from AGI
Business
1 answer:
Sedbober [7]3 years ago
4 0

<u>Answer: </u>A deduction for a loss incurred on the sale of a capital asset held for investment is a deduction for AGI.

<u>Explanation:</u>

AGI means the Adjusted gross income in the US tax system. Specific deductions are made from the individuals gross income to arrive at the AGI. the income which is taxable is calculated from the adjusted gross income from which personalized exemptions and itemized deductions.

In this case Sara has got a loss of $2,000 on the investment so this amount is deducted as a capital loss for AGI. AGI factors many allowable deductions from the gross income on which the income tax liability is calculated.

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Sales mix is a measure of the percentage increase in sales from period to period.
Degger [83]
False ...................
7 0
3 years ago
A company recently issued 9% preferred stock. The preferred stock sold for $40 a share with a par of $20. The cost of issuing th
Westkost [7]

Answer:

The company's cost of preferred stock is 5.1%

Explanation:

In order to find the cost  of the preferred stock we will need to divide the dividend the company pays on it by the net amount that the company is receiving for selling it.

In order to find the dividend we will multiply 9% by the par value of 20

Dividend = 0.09*20=1.8

Now we need to find the net amount the company receives for selling the preferred stock.

The company sells the stock for $40 but also has a issuing cost of $5, so in order to find the net amount we will subtract the cost from the price.

40-5= 35

35 is the net amount the company receives.

Now we will divide the the dividend 1.8 by the net amount 35

1.8/35=0.051

=5.1%

The company's cost of preferred stock is 5.1%

5 0
3 years ago
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all invest
Rzqust [24]

Answer:

E. $7,190

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

For project A,

Cash flow in year 0 = $-14,500

Cash flow in year 1 = $9,500

Cash flow in year 2 = $9,500

Cash flow in year 3 = $9,500

I = 15%

NPV = $7190.64

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0
3 years ago
When the relationship between government and interest groups becomes entangled and tight with some groups having formal governme
Talja [164]

Answer: Neo-Corporatism.

Explanation:

Neo- Corporatism emerged in resent times as a successor to State Corporatism. State Corporatism was a system whereby interest and labor groups were supposed to work together for the good of society. These were most prevalent in authoritarian regimes like Nazi Germany and post communist Lithuania.

Recently though, in some Democratic countries, interest groups have chosen to work with the Government to improve the lives of the people and enable the Government reach out deeper. These Peak Associations as they are often called help the Government compete economically and are very prevalent in countries and regions such as, Germany, Switzerland, Austria and Scandinavia.

6 0
3 years ago
8) walter co. and sandburg industries report the following information at december 31: walter sandburg accounts receivable $41,0
True [87]

Walter Co. is a manufacturer because it uses raw materials, and has a stock of merchandise inventory, work-in-progress inventory, and finished goods inventory. The current assets of Walter Co. will be:

Current Assets:

Cash                                                          6,000

Inventories

Raw materials inventory       21,000

Work in progress inventory  40,000

Finished goods inventory      25,000

Merchandise inventory           48,000

Total inventory                                      1,34,000

Other assets

Accounts receivable                               41,000

Prepaid expenses                                     1,000

Current assets                                                               2,22,000

A manufacturing company is a company that takes in raw materials processes the raw materials and then sells the finished goods manufactured in the market. So the current assets section of the balance sheet of Walter Co. is given which will be written on the right side of the balance sheet.

Learn more about manufacturing companies here:

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3 0
1 year ago
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