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tatyana61 [14]
4 years ago
11

Kareem owns a pickup truck that he uses exclusively in his business. The adjusted basis is $22,000, and the fair market value is

$14,000. In March 2019, Kareem exchanges the truck for another truck (worth $14,000) that he will use exclusively in his business.
1. What are Kareem’s realized and recognized gain or loss?
Business
1 answer:
Novosadov [1.4K]4 years ago
5 0

Answer:

The "Kareem" realized loss on the exchange is <u>$8000.</u>

Explanation:

The adjusted basis is = $22000

"Fair market value" is = $14000

"Kareem" exchanges the truck for another truck = worth $14000

"Realized gain" or "Realized loss = basis in the truck - exchange value

Realized gain or loss = $22000 - $14000

Realized gain or loss = $8000

Kareem's loss on the exchange is $8000.

There is no "recognized gain" or "recognized loss"  because the exchange is like a kind exchange which is not documented.

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Scenario:
Oksi-84 [34.3K]

The best strategy would be to invest in a property and then rent it to recover our investment and obtain additional profits.

<h3>What is an inversion strategy?</h3>

An investment strategy is an organized method of investing money in a business and making a profit in the future. This strategy allows us to organize our ideas to establish the best option that is within our reach to make the most of our investment.

<h3>What investment strategy should we use in this case?</h3>

In this case, taking into account that we no longer have pending obligations to pay, we can have $350. In this way, we can look for a property that can be paid in installments and acquire it.

Once we have paid the total value of our property, we can lease it, recover our investment and earn in the medium term.

Learn more about investments in: brainly.com/question/16822436

5 0
2 years ago
Which of the following is a job from the past which no longer exists?
klasskru [66]

Answer:

Lamp lighter

Explanation:

Very few exist today as most street lighting has long been replaced by electric lamps.

6 0
3 years ago
Guns R Us overstated its ending inventory in the current year by $5,000. The company incorrectly reported $100,000 of net income
soldi70 [24.7K]

Answer:

B. Cost of goods sold will be too low by $5,000.

Explanation:

Overstatement in closing inventory has two effects. First in income statement, that the cost of goods sold is decreased by the same amount that is overstated. Second is overstatement of Inventory value in the asset section of balance sheet. According to the given scenario The effect of this event should be as cost of goods sold will be too low by $5,000.

4 0
4 years ago
A physical count of merchandise inventory on November 30 reveals that there are 96 units on hand. Cost of goods sold (rounded) u
dedylja [7]

Answer: $1,712

Explanation:

If the company uses FIFO it means that they sell their earlier inventory first. If there are 96 units on hand, it means that these 96 units would be the latest inventory.

That means that these 96 units comprise of:

  • 86 units purchased on November 25 at $6.30 each and,
  • 10 units from the November 17 purchase of 58 units at $6.05 each which means 48 units were sold from this purchase.

The units sold were therefore:

= (29 * 5.80) + (115 * 6.20) + (48 * 6.05)

= 168.20 + 713 + 290.40

= $1,171.60

= $1,712

5 0
3 years ago
Which one of the following is a way to improve the S/Q rating of branded pairs produced at a particular production facility? Avo
Tomtit [17]

Answer: Avoiding use of green/environmentally-friendly materials (which are of lower quality than superior materials)

Explanation:

The International Footwear Federation is a consumer group that issues s/q ratings for footware makers around the world.

The S/Q ratings range from 0 - 10 stars and measure everything between the quality and appearance of the footware apparel.

Footware with high quality materials that are durable rank high in the S/Q matrix and as such it is imperative that companies aiming to move higher up the S/Q scale, use high quality materials.

Avoiding the use of green/environmentally-friendly materials (which are of lower quality than superior materials) and instead using Superior materials, whilst not entirely good for the Environment, will make a shoe stronger which would increase the S/Q rating.

7 0
3 years ago
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