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
iren [92.7K]
3 years ago
5

Pat sells land for $25,000 cash and a $75,000 5-year note. If her basis in the property is $30,000 and she receives only the $25

,000 down payment in the year of sale, how much is Pat's taxable gain in the year of sale using the installment sales method?
Business
1 answer:
LuckyWell [14K]3 years ago
8 0

Answer:

$17,500

Explanation:

Calculation of Pat's taxable gain in the year of sale using the installment sales method :

First step is to add up Land + Cash

$75,000+$25,000

=$100,000

Second step

([$100,000-$30,000)/$100,000]*$25,000

=($70,000/100,000)*$25,000

Hence:

0.7*$25,000

=$17,500

Therefore Pat's taxable gain in the year of sale using the installment sales method will be $17,500

You might be interested in
You got a new credit card and spent $200 on the card last month. You forgot to make the payment on time and were assessed a $40
Andre45 [30]
The answer is 20%, 40 is 1/5 of 200, therefore it is 20%
5 0
3 years ago
Compare a stock insurer to a mutual insurer with respect to each of the following: a. Parties who legally own the company b. Rig
jasenka [17]

Answer:

Explanation:

a. Parties who legally own the company

The kind of corporation that is owned by the shareholders is a stock insurer. While when policy holders elect board of directors then that is call a mutual insurer. This board of director enjoys control over the management control of the corporation.

b. Right to assess policyholders additional premiums

An asses sable policy can not be issued by the stock insurers, however policy of such kind can be issued by the mutual insurer. For mutual insurer, this policy depends on what kind of insurer is in place.

c. Right of policyholders to elect the board of directors

For stock insurer, its is the stockholders who elect the board of directors. While for mutual insurer, its the owners who elect the board of directors who have an effective control over the management.

4 0
3 years ago
Which of the following statements is true?a. The higher the maturity risk premium, the higher the probability that the yield cur
tia_tia [17]

Answer:

b. The most likely explanation for an inverted yield curve is that investors expect inflation to decrease

Explanation:

I have attached an image which plots the behavivour of a yield curve and inflation in a same period. As you can observe, there is an indirect relation between boths curves.

8 0
3 years ago
Timothy is a passionate speaker and has a political science degree. He is a natural leader and enjoys a challenge. Suzette also
gizmo_the_mogwai [7]
Tim should be in governance.
Suzette should be in planning
3 0
3 years ago
Read 2 more answers
Gayle is talking with her insurance broker and is comparing prices with the broker, who shows her that Company A can sell her in
kipiarov [429]

Answer: Independent insurance agent

Explanation:

An independent agent is sometimes called an insurance sales agent. An independent insurance agent is an insurance agent who sells insurance policies that are provided by different insurance companies.

An independent insurance agent gets commissions for the insurance policies that are sold. The higher the number of clients they serve, the higher the money they make. Independent insurance agents are not considered to be an employee of a particular insurance company

7 0
3 years ago
Other questions:
  • With respect to income from services, which of the following is true?a. The income is always amortized over the period the servi
    13·1 answer
  • A financially-responsible person reacts quickly to problems. True or False
    6·2 answers
  • Charlie and Sally are contending parties to a lawsuit involving the division of their inheritance from their grandmother. They w
    14·1 answer
  • Edward is considering buying a home using credit. What are three questions he should ask himself to ensure he is using credit re
    13·1 answer
  • What is the present value of $5,000 received 5 years from now if the discount rate is 5% (rounded to the nearest dollar?a. $6,38
    5·1 answer
  • Preparing job order costing journal entries
    13·1 answer
  • In 2019, pastured eggs sold for more than twice the price of cage-free eggs and almost 5 times the price of conventional eggs, m
    10·1 answer
  • Cinnamon Toast Crunch cereal and Trix cereal are considered substitute goods. Because of this, one would predict that, holding a
    7·1 answer
  • The product market is the place where _______. Multiple choice question. businesses sell resources and households buy resources
    8·1 answer
  • As a manager, you are being charged with reducing cost in a satellite laboratory; the physical environment of the workplace is a
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!