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TEA [102]
2 years ago
6

On September 30 of last year, Rex received some investment land from Holly as a gift. Holly’s adjusted basis was $50,000 and the

land was valued at $40,000 at the time of the gift. Holly acquired the land five years ago. What is the amount and character of Rex's recognized gain (loss) if he sells the land on May 12 this year at the following prices?A) $32,000B) $70,000C) $45,000
Business
1 answer:
Pachacha [2.7K]2 years ago
4 0

Answer:

A) On the 32,000 sale it will be considered a 18,000 gift to the buyer.

Because is above the 15,000 gift per person per year, it will trigger the gift tax.

B) 70,000 will generate a long-term capital gain of 20,000

C) gift of 5,000 it will not trigger the gift tax.

Explanation:

When the sale is below market value, it is treated as a gift to the buyer.

The capital gain or losses are considered using the adjusted basis.

Because Holly acquiredthe land for more than a year, it will be cosnidered a long-term capital gain if any.

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Roma and Swain are partners in Roma & Swain Attorneys, LLP, a limited liability partnership. Roma supervises their firm's as
meriva

Answer:

b. Roma and Taylor

Explanation:

In this case each attorney is liable for his negligence, so Taylor will be liable for not appearing in court .

Roma is his supervisor, and he will also be liable because he is responsible for Taylor's performance.

The other attorneys in the firm will not be liable, because there is personal liability. When they are not directly involved in negligence, they will not be liable to Umberto.

4 0
3 years ago
Brain Wing Inc. has won the bid to build airplanes for a host country government. However, the execution of the contract has bee
Anika [276]

Answer:

D. speed money.

Explanation:

Speed money or grease money are monies payed to fasten a routine process. For example to gain approval for a project, to clear a shipment.

Speed money differs from bribery because the end result is something that will be done with or without the speed money, so it is given to speed the process along.

Sometimes speed money is obligatory. To show it was payed legally documentation should be done.

7 0
2 years ago
Read 2 more answers
Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest
alexira [117]

Answer and Explanation:

The journal entries are shown below;

a. Investment Dr $37,282

      To Cash $37,282

(being the investment in bonds is recorded)

b.

Cash (($1,000 × $40) × 0.07 × 6 ÷ 12) $1,400

Investment  $91

   To interest revenue ($37,282 ×8% × 6 ÷ 12) $1,491

(Being the first interest payment is recorded)

5 0
2 years ago
Using the fixed-time-period inventory model, and given an average daily demand of 75 units, 10 days between inventory reviews, 2
viva [34]

Answer:

a. 863

Explanation:

Calculation for the order quantity

Order quantity = 75 x (10 + 2) + (1.64 x 8) - 50

Order quantity = (75 x 12) + (1.64 x 8) - 50

Order quantity= 900 + 13.12 - 50

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Order quantity = 863

Therefore the Order quantity will be 863

8 0
3 years ago
If a firm produces a return on assets of 15 percent and also a return on equity of 15 percent, then the firm:
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Answer:

No debt of any kind.

Explanation:

Then the firm has “no debt of any kind” because the company has the equity multiplier ratio is 1.

We have given the return on assets is 15 % and the same return is on the equity that is 15%.

Thus, the equity multiplier ratio can be calculated by dividing the total assets / total equity.

Equity mulitplier ratio = Total Assets / Total equity.

8 0
3 years ago
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