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densk [106]
4 years ago
15

Gary inherited a maine summer cabin on 10 acres from his grandmother. his grandparents originally purchased the property for $50

0 in 1950 and built the cabin at a cost of $10,000 in 1965. his grandfather died in 1980 and when his grandmother recently passed away, the property was appraised at $500,000 for the land and $700,000 for the cabin. since gary doesn't currently live in new england, he decided that it would be best to put the property to use as a rental.
Business
1 answer:
sergij07 [2.7K]4 years ago
7 0
Gary’s basis in the land and in the cabin is the basis of inherited possessions is the fair market value on the time of death or, if chosen by the estate, the alternative valuation date if less. As a result, Gary’s base will be $500,000 in the land and $700,000 for the cabin.
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OlgaM077 [116]

Answer:

The answer is 32.5%

Explanation:

Solution

Recall that:

Engineer income tax =25%

Incremental tax rate =10%

Extra earnings =$500

Now, what ill be his effective tax rate on the additional income

Thus

Federal income tax = 500 * 25 % = $125

The state tax = (500 - 125) * 10 % = $37.50

Effective tax rate = (125 + 37.50) / $500

=162.50 /$ 500

=  0.325  or 32.5% that is (0.325 * 100)

Hence the effective tax rate is 32.5 %

8 0
4 years ago
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3 0
3 years ago
Bags of​ free-range dog biscuits every year. the fixed ordering cost is
larisa [96]
The fixed ordering cost would be:
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5 0
3 years ago
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VashaNatasha [74]

Answer:

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nignag [31]

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