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s344n2d4d5 [400]
3 years ago
12

Carlos opens a dry cleaning store during the year. He invests $30,000 of his own money and borrows $60,000 from a local bank. He

uses $40,000 of the loan to buy a building and the remaining $20,000 for equipment. During the first year, the store has a loss of $24,000. In the next year, Carlos has a loss from the dry cleaning store of $18,000. For the second year, Carlos can deduct $ of the loss.
Business
1 answer:
aksik [14]3 years ago
3 0

Answer:

$6,000

Explanation:

Since the main the activitity of Carlos' business is dry cleaning services, but not a trade in or business in holding real property, he is only is at risk for $30,000 which is personal money

Therefore, the total of $24,000 will be deducted in the first year while the remaining $6,000 will be deducted in the second year to have a total of $30,000 which is his personal risk.

Therefore, for the second year, Carlos can deduct <u>$6,000</u> of the loss.

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3 years ago
Boats R Us requires $800,000 in financing over the next 2 years. The firm can borrow the funds for 2 years at 12% interest per y
a_sh-v [17]

Answer: Short term is less costly

Explanation:

Total interest cost under long term financing = 800,000 × 12% × 2

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4 0
3 years ago
3. What are three purchasing activities in businesses?
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3 0
3 years ago
Which type of investment typically charges the investor lowest fees
Norma-Jean [14]
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Forlornistan is a country in the midst of a serious economic downturn. Forlornistan's GDP has declined steadily for over three y
goblinko [34]

Answer:

The correct answer is option c.

Explanation:

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