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
IRISSAK [1]
3 years ago
12

Shontelle owns an apartment house that has an adjusted basis of $760,000 but is subject to a mortgage of $192,000. She transfers

the apartment house to Dave and receives from him $120,000 in cash and an office building with a fair market value of $780,000 at the time of the exchange. Dave assumes the $192,000 mortgage on the apartment house. What is Shontelle’s realized gain or loss?
Business
1 answer:
emmainna [20.7K]3 years ago
3 0

Answer:

Realized gain of Shontelle = $332000

Explanation:

given data

adjusted basis = $760,000

mortgage = $192,000

receives cash = $120,000

fair market value = $780,000

to find out

What is Shontelle realized gain or loss

solution

we find here first Realized gain that is express as

Realized gain = Amount realized - Adjusted basis     ..................1

so here Amount realized = (receives cash  + fair market value + mortgage)

Amount realized = (120000 + 780000 + 192000)

Amount realized = 1092000

so from equation 1

Realized gain = Amount realized - Adjusted basis  

Realized gain = 1092000 - 760000

Realized gain =  $332000

so we can say that

Realized gain of Shontelle = $332000

You might be interested in
Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales o
LenaWriter [7]

Answer:

When a company sells different securities together (this usually happens during mergers and acquisitions):

  1. and the price of all the securities is not certain, the incremental method will first allocate proceeds to the sale of securities whose price is actually certain. The remaining proceeds will be allocated to the securities whose price is uncertain. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth ? million were sold. The company will allocate $5 million to stocks and $5 million to bonds.
  2. and the price of all the securities is certain, the proportional method allocates the sales proceeds proportionally among the different securities sold. E.g. total sales $10 million, stocks worth $5 million were sold and bonds worth $3 million were sold. The company will allocate ($5/$8) x $10 million = $6.25 million to stocks and $3.75 to bonds.

6 0
3 years ago
Which of the following statements is CORRECT?
Lera25 [3.4K]

Answer:

c. The "apparent," but not necessarily the "true," financial position of a company whose sales are seasonal can change dramatically during a given year, depending on the time of year when the financial statements are constructed.

Explanation:

Financial statements are used to show the financial activity of a business within a given period.

One of the principles of a accounting is periodicity. This requires businesses to report their financial position at regular intervals consistently, and not in an inconsistent manner. So if a business reports their finances twice a year. At year end and at mid year, it is possible that at mid year due to seasonal sales performance will be high and business is perceived to be highly profitable.

But financial report at end of year in the off-season will show low performance.

So for seasonal businesses there can be apparent view of a business during the year that can change dramatically because of time at which reports are made.

3 0
3 years ago
Goodwill messages should not be​ ________.
pashok25 [27]
<span>Goodwill messages should always be without a direct business purpose. If you are on a goodwill mission it should never be done to increase your business but in an effort to support a cause and show compassion.</span>
6 0
4 years ago
Lumberne is a continent comprising 18 countries. Currently, Lumberne is a free trade area and an economic union including all 18
PIT_PIT [208]

Answer:

political union.

Explanation:

Political Union is defined as a political entity that is made up of different states. Usually the different stages come together to form. The political Union in a process called unification.

Lumberne is a continent comprising 18 countries.each country is politically independent, governments of at least 12 countries are negotiating to form a common government. Lumberne is a free trade area and an economic union including all 18 countries as members of free trade.

This is an example of a political Union.

7 0
3 years ago
In the text's business plan model, recognition of potentially unreliable sales forecasts and industry trends, and uncertain raw
bixtya [17]
Dont know this im sorry
8 0
3 years ago
Other questions:
  • Hewitt Company expects cash sales for July of​ $11,000, and a​ 19% monthly increase during August and September. Credit sales of
    10·1 answer
  • This is a graphic representation of the quantity producers are willing to produce at different prices.
    6·1 answer
  • When merchandise sold is assumed to be in the order in which the purchases were made, the company is using a.last-in, first-out
    13·1 answer
  • Waterway Frame Camera Shop uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are availa
    15·1 answer
  • Which sentence is​ best?
    12·1 answer
  • Kristen Lu purchased a used automobile for $16,750 at the beginning of last year and incurred the following operating costs:
    7·1 answer
  • Charles Underwood Agency Inc.’s FCFs are expected to grow at a constant rate of 3.90% per year in the future. The market value o
    10·1 answer
  • Annuity due.   Reginald is about to lease an apartment for 12 months. The landlord wants him to make the lease payments at the s
    12·1 answer
  • Low inflation is a sign of?
    8·1 answer
  • In the current year, Pringle Company reported Sales of $ 1,420,000 , Interest Expense of $ 12,000 , Income Tax Expense of $ 13,0
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!