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xxTIMURxx [149]
3 years ago
13

Troy (single) purchased a home in Hopkinton, MA, on January 1,2007, for $300,000. He sold the home on January 1, 2016, for$320,0

00. How much gain must Troy recognize on his home sale ineach of the following alternative situations? d. Troy rented thehome from January 1, 2007, through December 31, 2011. He lived inthe home as his principal residence from January 1, 2012, throughDecember 31, 2012. He rented out the home from January 1, 2013,through December 31, 2013, and lived in the home as his principalresidence from January 1, 2014, through the date of the sale.Assume accumulated depreciation on the home at the time of sale was$0. Gain recognized? The answer is not $28,571 The answer is not$4,375
Business
1 answer:
Artemon [7]3 years ago
5 0

Answer:

$20,000

Explanation:

Time difference from the "Purchase date" to "Sale date" = 9 years (1/1/2007 to 1/1/2016)

Given that, in the 9 years, Troy rented the home for first 5 years (1/1/2007 to 1/1/2012), and lived in the home as his principal residence for next 1 year(1/1/2012 to 31/12/2012)

and again rented out the home for 1 year (1/1/2013 to 31/12/2013), and again started to lived in the home as his principal residence for next 2 years. (1/1/2014 to 1/1/2016)

i.e. when we look at the last 5 years before the sale of house, Troy has lived 3 years in the home as his principal residence.

And Troy has acquired the home for $300,000 and not acquired by "like kind exchange" of property.

As per IRS rules, a owner must live at least 2 years in the home as his principal residence & home must not be acquired by 1031 exchange (like/kind exchange).

Here, Troy satisfies both conditions. (He has lived more than 2 years, and not acquired by like/kind exchange)

So, as per above rules, Troy's home sale is eligible for Maximum exclusion of $250,000 gain (being Troy is Single)

Here, as per IRS rules, Gain = Amount Realized / Adjusted Basis = $320,000 - $300,000 = $20,000.

But, being Troy home sale is eligible for Maximum exclusion of $250,000, this $20,000 gain is deducted and Net Gain = $0.

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Philippe wants to make sure of the success of his new doggy day care, PAWS, by employing the steps in the basic planning process
Nataliya [291]

Answer:

Full Business Considerations

Efficient Facilities

A Cost-Effective Advertisement

He must Define his Services

He must outline his Service Prices

Carry out interviews for New Clients

With all of these steps being adhered to, Philippe's business will indeed be great!

6 0
3 years ago
When the cost minimizing combination of inputs is being used and there is no corner​ solution,
LenKa [72]

Answer:

A. the iso-quant line is tangent to the iso-cost line.

Explanation:

Cost minimization refers to the decrease in level of cost of production for certain specified level of production.

Iso quant line represents the labor and capital combinations keeping the total cost same. The least combination represents the tangent to isoquant, basically representing the idle choice of labor and capital.

In this manner the company chooses the idle way of cost minimization.

4 0
3 years ago
Nature’s Crunch is currently the only certified organic produce grower in a region that produces lots of non-organic produce alt
aliya0001 [1]

Answer:

The correct answers are letters: "A", "B", "C", and "D".    

Explanation:

As a monopoly, Nature's Crunch will be benefited in profit terms if any chemical involved non-organic vegetables growing process is affected somehow. Then, <em>a tomato blight affecting chemically treated plants, an increase in the cost of chemical pesticides, and a new report about the environmental dangers of chemically treated plants</em> would automatically generate more sales for Nature's Crunch. Besides, it does not matter under what scenario, <em>income tax cuts</em> <em>for all consumers</em> will generate more revenue both for organic and non-organic industries.

7 0
3 years ago
Muy Bueno Bakery Company sells three different products. Currently they are not able to meet all of their customers' demand. Usi
cestrela7 [59]

Answer:

c. Pie

Explanation:

In order to determine which product is the most profitable, we must calculate the contribution margin per hour:

                                              Cake               Pie                      Cookies

contribution margin               $18                 $11                          $3

production time                        3                    1                           .30

contribution margin p/hour    $6                 $11                         $10

Pie is the most profitable product, followed by cookies, and cakes are the less profitable products.

4 0
3 years ago
What would be the double entry for an issue of indirect production materials? Select one: a. Dr Material control account Cr Fini
sattari [20]

Answer:

b. Dr Production overhead control a/c Cr Material control account.

Explanation:

Indirect material in the production process is defined as those input that cannot be directly traced to the product. They are different from direct materials like raw materials that are used to make the product.

Indirect materials are classified as overhead.

The double entry for issue of indirect materials is:

Debit production overhead

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Note direct production materials and indirect production materials are credited to material material control account on purchase.

4 0
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