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
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.

You might be interested in
What is one way that critical thinking can help in career exploration?
Llana [10]
Becoming aware of your assumptions and becoming open to different points of view can help you demonstrate respect for various approaches to work tasks and styles, making it easier for you to build relationships and be successful with others in your career.
8 0
3 years ago
Read 2 more answers
PLEASE HELP ASAP!!! (There are 4 Questions)
Ivanshal [37]

1. A guaranteed loan is a loan that a third party guarantees – or assumes the debt obligation for – in the event that the borrower defaults. If a co-signer is on the loan, if the main party defaults the co-signer becomes responsible for the loan.

2. I could ask family members as a last resort for financing.

3. The annual exclusion for 2014, 2015, 2016 and 2017 is $14,000. For 2018 and 2019, the annual exclusion is $15,000.

4. line of credit loan will help protect a business in case of emergency. It is an open loan that the business can draw from when it needs more money, and pay it back. Unlike installment loans, once the principal is paid the line stays open for use in the future without the need to reapply each time.

3 0
3 years ago
Read 2 more answers
Classify each item as an asset, liability, common stock, revenue, or expense. (a) Issuance of ownership shares. select the corre
Roman55 [17]

Answer:

The classified list of items is as follows:

(a) Issuance of ownership shares - Common stock

(b) Land purchased - Asset

(c) Amounts owed to suppliers - Liability

(d) Bonds payable - Liability

(e) Amount earned from selling a product - Revenue

(f) Cost of advertising - Expense

Hence, all the items are classified as asset, liability, revenue, common stock and expense.

8 0
3 years ago
You got asked to analyze a 5 year project for your firm. The project produces an annual revenue of $28,500, but requires an annu
hram777 [196]

Answer:

15,300

72.70%

Explanation:

After tax cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($20,000 - $5,000) / 5 = $3,000

($28,500 - $5,000 - $3000) x (1 - 0.4) + $3000 = $15,300

Terminal year cash flow = after tax cash flow + salvage value

$15,300 + $5,000 = $20,300

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $20,000.

Cash flow in year 1 - 4= $15,300

Cash flow in year 5 = $20,300

IRR = 72.70%

To find the IRR using a financial calculator:

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 IRR button and then press the compute button.  

8 0
3 years ago
Participation occurs when employees have a voice in decisions about their own work.
jarptica [38.1K]
TRUE. Participation occurs when employees have a voice in decisions about their own work.
3 0
3 years ago
Other questions:
  • Otis Thorpe Corporation has 10,000 shares of $100 par value, 8%, preferred stock and 50,000 shares of $10 par value common stock
    8·1 answer
  • The existing balance in the Allowance for Doubtful Accounts is considered in computing bad debt expense when using the percentag
    10·1 answer
  • Which of the following statements is CORRECT?
    9·1 answer
  • Buying a new car can create a financial challenge because
    13·1 answer
  • Which of the following is prepared​ last? A. Balance Sheet B. Statement of​ Owner's Equity C. Trial Balance D. Income Statement
    5·1 answer
  • Complets the first row of the table with the quantity of burgers that can be bought with $700. Hint: In this problem, your calcu
    6·1 answer
  • A for-profit institution that works with the general public to open and manage savings accounts is known as a(n) _____. A. comme
    8·1 answer
  • Your firm is considering the purchase of a new office phone system. You can either pay $ 32 comma 500 ​now, or $ 900 per month f
    10·1 answer
  • Ahmed is a department head at Southwest City Hospital. He spends most of his time training and coaching employees to perform the
    5·2 answers
  • GAWAIN 2
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!