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damaskus [11]
3 years ago
12

Bob owns a rental property that he bought several years ago for $260,000. He has taken depreciation on the house of $37,000 sinc

e buying it. He sells it in 2019 for $290,000. His selling expenses were $12,000 for the year. What was Bob’s realized gain on the sale?
Business
1 answer:
EleoNora [17]3 years ago
4 0

Answer:

Bob’s realized gain on the sale is $55,000,

Explanation:

The first step is to find the Book Value of the Rental Property Sold.

<u>Book Value of the Rental Property Sold.</u>

Cost                                               $260,000

Less Accumulated Depreciation  ($37,000)

Book Value                                   $223,000

Gain or Loss on Sale = Selling Price - Cost of Sale (Book Value) - Other Selling Expenses

                                   = $290,000 - $223,000 - $12,000

                                   = $55,000

<u>Conclusion :</u>

Bob’s realized gain on the sale is $55,000,

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Artemon [7]
<span>The percentage of new sales is $3,368.00</span>
4 0
2 years ago
Lucie is reviewing a project with an initial cost of $38,700 and cash inflows of $9,800, $16,400, and $21,700 for Years 1 to 3,
Alecsey [184]

Answer:

Results are below.

Explanation:

To determine whether the project should be accepted or not, we need to calculate the net present value. <u>If the NPV is positive, the project should be accepted.</u>

<u>To calculate the NPV, we will use the following formula:</u>

NPV= -Io + ∑[Cf/(1+i)^n]

Cf1= 9,800/1.0975= 8,929.38

Cf2= 16,400/1.0975^2= 13,615.54

Cf3= 21,700/1.0975^3= 16,415.20

Total= $38,960.12

NPV= -38,700 + 38,960.12

NPV= 260.12

<u>The project is profitable. </u>

5 0
3 years ago
Donnie's Donuts incurs $450,000 per year in explicit costs and $200,000 in implicit costs. The bakery earns $800,000 in revenues
marshall27 [118]

Answer:

$150,000

Explanation:

Given that

Total revenue = $800,000

Explicit cost = $450,000

Implicit cost = $200,000

The computation of the accounting profit is as shown below :-

= Total revenue - Total cost

= $800,000 - $650,000

= $150,000

Total cost = Explicit cost -Implicit cost

= $450,000 + $200,000

= $650,000

Therefore for calculating the accounting profit we simply deduct the total cost from total revenue.

5 0
3 years ago
At the Penalty APR rate of 28.99% and a balance of about $1800, approximately how much interest would you owe in one month?
Gnom [1K]

Answer:

you owe $43.47 in one month

Explanation:

Daily Interest (for one month) = Balance × APR rate × [number of month / Total month in a year]

Daily Interest = $1800 × 28.99% × 1/12

                      = $1800 × 0.2899 × 0.0833

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5 0
3 years ago
Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, an
liq [111]

Answer:

Geographic location.

Explanation:

Market segmentation is a process of grouping customers in markets with some heterogeneity into smaller, more similar or homogeneous segments with similar requirements and buying characteristics.

Types of market segmentation:

-Demographic

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8 0
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