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Phoenix [80]
3 years ago
10

Brenda sold investment land for $200,000 in June. Her basis in the land was $75,000. The purchaser paid Brenda $40,000 cash and

gave her his 5-year, interest-bearing note for the $160,000 remaining contract price. In December, Brenda received a $20,000 principle payment on the note. Brenda's recognized gain this year is:a. $22,500 b. $37,500 c. $125,000 d. $60,000
Business
1 answer:
spayn [35]3 years ago
4 0

Answer:

b. $37,500

Explanation:

a. Realized gain = (cash down payment + Purchase Note ) - Adjusted Tax basis

=(40000+ 160000)-75000

= 200000 - 75000

= 125000$

Gross profit percentage = profit /sales

=125000 / (40000 + 160000)

=125000 / 200000

=62.5%

year 1 Realised gain =   downpayment * 62.5%

= 400000 *62.5%

=25,000$

Realised gain = installment payment * 62.5%

= 20000 * 62.5%

= 12,500$

i.e 37,500$

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The mandala of jnanadakini shows what kind of balance?
Tems11 [23]

Answer:

radial

Explanation:

step by step explanation

8 0
2 years ago
The rate card for a magazine mentioned that the one-time cost for a full-page black-and-white ad was $930. The magazine had a to
11111nata11111 [884]

Answer:

Magazine's cost per thousand (CPM) = $62

Explanation:

Given:

Cost per card = $930

Total number of cards = 15,000

Find:

Magazine's cost per thousand (CPM)

Computation:

Magazine's cost per thousand (CPM) = [Cost per card x 1,000] / Total number of cards

Magazine's cost per thousand (CPM) = [930 x 1,000] / 15,000

Magazine's cost per thousand (CPM) = 930,000 / 15,000

Magazine's cost per thousand (CPM) = $62

5 0
3 years ago
Cirone Inc. reported the following results from last year's operations: Sales $ 9,600,000 Variable expenses 6,810,000 Contributi
weeeeeb [17]

Answer: 8.39%

Explanation:

Margin = Net Income/ Sales

Net income for the company including the new investment:

= 864,000 + (Sales * Contribution margin ratio - Fixed costs)

= 864,000 + (4,200,000 * 30% - 966,000)

= $1,158,000

The combined sales for the company is:

= 9,600,000 + 4,200,000

= $13,800,000

Combined margin:

= 1,158,000 / 13,800,000

= 8.39%

6 0
3 years ago
Mugs Café sells 1000 cups of coffee per week if it does not advertise. For every $50 spent in advertising per week, it sells an
Zepler [3.9K]

Answer:

1,300 cups

Explanation:

This can be solved as follows:

Question "a"

y = a + bx ................................................. (1)

Where,

y = number of cups of coffee sold per week

x = number of times b is multiplied based on the amount spent on adverts

amount spent on advertising per week

a = fixed cups of coffee per week without advertising = 1,000 cups

b = extra quantity sold when $50 is spent on advertisement = 150 cups

If the available figures above are substituted into equation (1), we will have the linear function as follows:

y = 1000 + 150x ................................................. (2)

Equation (2) is the linear function required.

Question "b"

If $100 per week is spent on advertising, we can get X by dividing it by $50 as follows:

x = $100 ÷ $50 = 2

Substituting 2 for x in equation (2), we can calculate y as follows:

y = 1000 + 150(2)

  = 1000 + 300

  = 1,300 cups.

Therefore, 1,300 cups of coffee are expected to be sold per week by Mugs Café if it spends $100 per week on advertising.

I wish you the best.

8 0
3 years ago
Carrie D's has 8 million shares of common stock outstanding, 6 million shares of preferred stock outstanding, and 30 thousand bo
mr Goodwill [35]

Answer:

Weight of equity = 0.31067 or 31.067%  or   96/309

Explanation:

WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm can be calculated as follows,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • w represents the weight of each component based on market value in the capital structure
  • r represents the cost of each component
  • D, P and E represents debt, preferred stock and common equity respectively

To calculate the weight of equity in WACC computation, we first need to find out the Market value(MV) of each component and the market value of the overall capital structure.

MV of common equity = 8 million shares * 12 per share

MV of common equity = $96 million

MV of Preferred stock = 6 million shares * 30 per share

MV of Preferred stock = $180 million

The bonds are usually have a par value of $1000 unless specified otherwise.

MV of debt = 30 thousand * $1000 * 110%

MV of debt = $33 million

MV of total capital Structure = 96 + 180 + 33  => $309 million

Weight of equity = 96 / 309

Weight of equity = 0.31067 or 31.067%  or   96/309

6 0
3 years ago
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