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
tia_tia [17]
4 years ago
15

Samantha, a one-third partner, has an adjusted basis of $90,000 for her partnership interest. If Samantha sells her entire partn

ership interest to Emma for $100,000 cash, what is the amount and character of Samantha's gain or loss from the sale?
a. $10,000 capital gain.
b. $10,000 ordinary income.
c. $20,000 ordinary income; $10,000 capital gain.
d. $10,000 capital loss; $20,000 ordinary income.
Business
2 answers:
alexgriva [62]4 years ago
6 0

Answer:

Correct option is D.

$10,000 capital loss; $20,000 ordinary income.

Explanation:

Samantha's share of unrealized receivables is $20,000 ($60,000 unrealized receivables × 1/3 interest). Susan will recognize $20,000 of ordinary income and a $10,000 capital gain determined as the difference between the total gain of $30,000 and the ordinary income of $20,000.

Paladinen [302]4 years ago
6 0

Answer:

$10,000 capital gain.

Explanation:

Given that:

  • Adjusted basis of $90,000
  • Sell her interest for  $100,000

So the difference between her basis and sales interest is:

$100,000 - $90,000

= $10,000

She will have a gain on sales of her interest because she receives the only cash for the sales and the amount is greater than her basis in her partnership. Therefore, the gain will be seen as capital

You might be interested in
The Phoenix Suns decide to increase their ticket prices for next season. We might expect revenue will rise due to the higher pri
vaieri [72.5K]

We might expect revenue will rise given that Phoenix is a large city.

<h3>What is a revenue?</h3>

This refers to the income generated from normal business operations which are calculated by average sales price * the number of units sold

Because Phoenix Suns decide to increase their ticket prices for next season, then, we might expect revenue will rise given that Phoenix is a large city.

Therefore, the Option B is correct.

Read more about revenue

<em>brainly.com/question/4618859</em>

#SPJ1

5 0
2 years ago
Abardeen Corporation borrowed $90,000 from the bank on October 1, 2018. The note had an 8 percent annual rate of interest and ma
Vitek1552 [10]

Answer:

$0

Explanation:

Data provided in the question

Borrowed amount from the bank = $90,000

Annual interest rate  = 8%

Maturity date = March 31, 2019

Since it is mentioned in the question that, the interest and the principal were paid in cash on the maturity date so for the amount of cash that Abardeen had to pay for 2018 interest would be zero as the principal and the interest is paid for 2018

7 0
4 years ago
A trust established by your will that becomes effective upon your death is called a(n) ____________ trust.
olga2289 [7]

In most states, a will is often referred to as a "last will and testament". So any trust or transfer at death that involves will is said to be testamentary (from the testament). Choice B is a living trust - which doesn't involve death. Choices C and D can be made while a person is alive.

The answer here is A, a testamentary trust.


5 0
3 years ago
Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct
FinnZ [79.3K]

Answer:

Total materials variance = (Actual quantity * Actual price) - (Standard quantity * Standard price)

= 2,850 - (230 * 14.4)

= 462 (Favourable)

Materials price variance = (Standard price - Actual price) * Actual quantity

= [1.8 - (2,850/1,500)] * 1,500

= 150 Unfavourable

Materials quantity variance = (Standard quantity - Actual quantity) * Standard price

= [(230 * 8) - 1,500] * 1.8

= 612 Favourable

Total labour variance = (Actual hours * Actual rate) - (Standard hours * Standard rate)

= 19,458 - (230 * 84)

= 138 Unfavourable

Labour price variance = (Standard rate - Actual rate) *  Actual hours

= [14 - (19,458/1,410)] * 1,410

= 282 Favourable

Labour quantity variance = (Standard hours - Actual hours) * Standard rate

= [(230 * 6) - 1,410] * 14

= 420 Unfavourable

6 0
3 years ago
Changes in property, plant and equipment relate to the ______ activities on the statement of cash flows. Multiple choice questio
inysia [295]

Changes in property, plant, and equipment related to the investing activities on the statement of cash flows.

The cash flow statement reveals how much money is made or spent on operating, investing, and financing activities during a certain time period, bridging the gap between the income statement and the balance sheet.

The cash generated or spent in relation to investment activities is shown in the cash flow from investing activities portion of the cash flow statement.

Buying tangible assets, investing in securities, or selling securities or assets are all examples of investing activity.

If management is investing in the long-term health of the company, negative cash flow from investing operations could not be a bad indicator.

Hence, Changes in property, plant, and equipment related to the investing activities on the statement of cash flows.

Learn more about Cash flow statement:

brainly.com/question/735261

#SPJ1

4 0
2 years ago
Other questions:
  • An inferior good is one for which _ _ in buyers income causes
    11·1 answer
  • Earnings on pooled investments and changes in fair value of investments are allocated to the participants having an equity inter
    14·1 answer
  • The creation of a new product goes through several stages. At the _______ phase, a product idea is presented to a sample of pote
    8·1 answer
  • All else equal, when oil prices increase, some uneconomical sources of oil tend to become more economical, and this will _______
    11·1 answer
  • "An unexpected benefit of deliberate practice is ______"
    8·1 answer
  • The terms of trade reflect the:
    10·1 answer
  • In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the
    14·1 answer
  • he manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indica
    13·1 answer
  • A $10,000 face value Treasury bond is quoted at a price of 101.6533 with a current yield of 4.87 percent. What is the coupon rat
    6·1 answer
  • A comparable property showed adjusted value of $40,000. The property sold two years ago, and the adjustments indicated a 7% annu
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!