I need help with this question if someone could please help me.

Pam exchanges a rental building, which has an adjusted basis of $520,000, for investment land which has a fair market value of $

kompoz [17]

Answer: Option "d" $280000 and $700000.

Explanation:

Option “d” is correct because the recognized gain is $280,000. Pam exchanges a building that has adjusted worth $520000 for the land which has a value of $700000. Thus, at this point, Pam is making a profit of (700000 - 520000) = $180,000. Moreover, he receives additional cash of $100,000. So, total gain by Pam is $180,000 + $100000 = $280,000. However, the tax basis of land refers to the fair market value at which it was acquired. So, it will be $700000.

8 0

2 years ago

Select the items below which must be adjusted to the book balance: ________

Alona [7]

Answer:

b. Book Error

e. Interest earned on the Checking account

f. Collections of Accounts receivable by the bank.

Explanation:

Items which must be adjusted to the book balance as this question is concerned are Book Error, Interest earned on the Checking account & Collections of Accounts receivable by the bank.

These above items require adjustment in book balance to compute the adjusted book balance.

6 0

2 years ago

You have an investment that will pay you 1.18 percent per month. a. How much will you have per dollar invested in one year? (Do

fiasKO [112]

Answer:

The correct answer for option (a) is $1.15 and for option (b) is $1.33.

Explanation:

According to the scenario, the given data are as follows:

Present value (PV) = $1

Rate of interest (R) = 1.18% per month

Time period (for option a) (t1)= 12 months

Time period ( for option b) (t2)= 24 months

So, we can calculate the future value by using following formula:

FV = PV × ( 1 + R )^t

(a). By putting value in the formula:

FV = $1 ( 1 + 0.0118)^12

= $1 × 1.1511610877

= $1.15

FV = PV × ( 1 + R )^t

(b). By putting value in the formula:

FV = $1 ( 1 + 0.0118)^24

= $1 × 1.32517184983

= $1.33

6 0

3 years ago

Which of the following statements is TRUE with regard to gross margin?

Naddik [55]

ANSWER: (A)

EXPLANATION: Gross margin is the difference between revenue and cost of goods sold divided by revenue. Gross margin is expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold. Gross Margin is often used interchangeably with Gross Profit, but the terms are different.

7 0

3 years ago

Kathleen Taylor is a high school student who has been investigating the possibility of mowing lawns for a summer job. She has a

djverab [1.8K]

Answer:

Kathleen Taylor

a. The break-even lawns she needs to mow is:

= 31.25 lawns.

b. She can then expect to make $4,320 in Service Revenue and $2,304 in net income.

c. She should not lower her price.

Explanation:

a) Data and Calculations:

Cost of equipment = $500

Cost per lawn = $14

Price per lawn = $30

Contribution per lawn = $16 ($30 - $14)

Break-even point = $500/$16

= 31.25 lawns

Available period = 8 weeks

Number of lawns per day = 3

Working days per week = 6

Number of lawns per week = 18

Number of lawns for the period = 144 (18 * 8)

She can then expect to make $4,320 in Service Revenue and $2,304 in net income.

Number of lawns for the period = 192 (4 * 6 * 8)

Service revenue = $4,800 (192 * $25)

Net income = $2,112 (192 * $11)

4 0

3 years ago