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
olga2289 [7]
3 years ago
14

Al, who is single, has a gain of $40,000 on the sale of § 1244 stock (small business stock) and a loss of $80,000 on the sale of

§ 1244 stock. As a result, Al has a $40,000 ordinary loss. True False
Business
1 answer:
Genrish500 [490]3 years ago
7 0

Answer:

False

Explanation:

Given that

Gain on the sale = $40,000

And loss on the sale = $40,000

So by considering the above information ,

So, the gain on sale i.e $40,000 would be classified as a capital gain and the $80,000 would be classified as a ordinary loss which is to limited of $50,000

So, the remaining balance i.e

= $50,000 - $40,000

= $10,000

This $10,000 would be term as capital gain

Hence, the given statement is false

You might be interested in
What is the function of a 3-compartment sink?
lord [1]
One for washing one for rinsing and one for sanitizing the dishes
8 0
3 years ago
Which of the following statements is true regarding the cumulative translation adjustment? Select one: Changes in the cumulative
vaieri [72.5K]

Answer:

The true statement is "The cumulative translation adjustment account affects the amount of gain or loss reported upon the sale of a foreign subsidiary".

Explanation:

The current technique needs that each one quality and accountability books be interpreted at this rate whereas shareholders’ justice accounts are interpreted at ancient altercation rates. The distinction is mirrored finished the additive conversion alteration, therefore the quantity of improvement or loss according upon the auction of a distant secondary to the additive conversion alteration.

8 0
3 years ago
How is the scientific method similar to or different from superstition,guessing,intuition,hope?
CaHeK987 [17]
Scientific method involves ways in which you would solve something while the others are just assuming or wondering what could happen.
3 0
3 years ago
A company has the following liabilities at year end: Mortgage note payable; $16,000 due within 12 months $355,000 Short-term deb
Grace [21]

Answer:

The amount that the company should include in the current liability section of the balance sheet is $16,000

Explanation:

The short-term debt that the company is refinancing with long-term debt is non-current and  deferred tax liability arising from depreciation is also non-current and should be disclosed as such in the Balance sheet after the sub-heading long-term borrowings.

Therefore, The amount that the company should include in the current liability section of the balance sheet is $16,000

4 0
3 years ago
Delta Corporation has a bond issue outstanding with an annual coupon rate of 7% and 20 years remaining until maturity. The par v
denpristay [2]

Answer:

Current yield is 10.3%

Explanation:

Coupon payment = 1000 x 7% = $70 annually

Number of periods = n = 20 years

Yield to maturity = 11% annually

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond = $70 x [ ( 1 - ( 1 + 11% )^-20 ) / 11% ] + [ $1,000 / ( 1 + 11% )^20 ]

Price of the Bond = $557.43 + $124.03 = $681.46

Current yield is the ration of coupon payment to the price of the bond.

Current Yield = Coupon Payment / Price of Bond = $70 / 681.46 = 0.1027 = 10.3%

5 0
3 years ago
Other questions:
  • On January 1, Year 1, Dunn Brothers, Inc., purchased a new smartphone case making machine at a cost of $80,000. The estimated re
    12·1 answer
  • In the presence of​ shortages, why would a​ firm, such as a restaurant with people waiting for a table or a theater with people
    11·1 answer
  • When you use paper money to pay for food, the money is a
    15·2 answers
  • A polisher costs $10,000 and will cost $20,000 a year to operate and maintain. If the discount rate is 10 percent and the polish
    9·1 answer
  • Product extension and refinement:a. shorten the product life cycle. b. extend the product life cycle. c. are too costly for most
    11·1 answer
  • Swift Company purchased a machine on January 1, 2010, for $500,000. At the date of acquisition, the machine had an estimated use
    9·1 answer
  • A(n) ________ occurs when the purchasing agent orders additional units of products that have previously been purchased.
    5·1 answer
  • Which form of promotion would be most effective at correcting a damaged business reputation?
    10·2 answers
  • Most interest-inventory tests _______.
    7·2 answers
  • Develop a plan in which Ethan can finish his degree without debt
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!