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Deffense [45]
3 years ago
15

During the year, Lillie rented her vacation home for three months and spend one month there. Gross rental income from the proper

ty was $5,000. Lillie incurred the following expenses: mortgage interest, $3,000; real estate taxes $1,500; utilities, $800; and depreciation, $4,000. Compute Lillie's allowable deductions for the vacation home.
Business
1 answer:
77julia77 [94]3 years ago
7 0

Answer:

$8,100

Explanation:

The home was rented for more than 14 days, you must pay taxes for the rental income

Since Lille used the house for more than 15 days herself, limits her deduction. The home cannot be treated as rental home nor personal use vacation home.

total days used = (30 x 3) + 30 = 120 days

rental days = 90/120 = 75% (this doesn't apply to mortgage interest nor real estate taxes, they are still 100% deductible)

mortgage interest and real estate taxes still qualify as personal expenses = $3,000 + $1,500 = $4,500

utilities and depreciation will be deducted only 75% = ($800 + $4,000) x 75% = $3,600

total deductions = $4,500 + $3,600 = $8,100

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Over the past year, the current assets account on the common-size balance sheet of a firm has decreased, while the current liabi
Free_Kalibri [48]

Answer:

Decreased

Explanation:

Liquidity or current ratio =  Current Assets / Current liabilities

If the current asset has been decreased and the current liabilities has been increased then the answer would be higher than before.

The current ratio tells the same and the only difference written above and in current ratio is that the above mentioned Answer is conceptual based whereas current ratio uses numerical values of current assets and current liabilities written in the balance sheet.

Current ratio tells us that whether or not the company is able to meet its short term liabilities (Current Liabilities) using its short term asset (Current Assets).

Remember that the current assets are the assets that are convertible to cash within next 12 months. Whereas current liabilities are the liabilities which we have to pay in cash within the next 12 months.

3 0
3 years ago
Between and , the u. s. dollar ______ against the canadian dollar. between and , the u. s. dollar ______ against the
dybincka [34]

Answer:

would be the dollar value between the US and Canadian

4 0
2 years ago
Charles owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a
timofeeve [1]

Answer:

Cost of each bottle of water is $7.

Explanation:

This is the case for economies of scale. When Charles produce 1 bottle of water, it costs him $1 per bottle, when 8 bottles are produced it costs him  $7. The cost per bottle of water reduces as units increases.

3 0
2 years ago
Shondee Corporation uses the lower of cost or market and FIFO inventory methods. At the end of 2018, the FIFO cost of the ending
Assoli18 [71]

Answer:

reported as income for all three years   is $7,000

Explanation:

given data

cost of the ending inventory = $181,000

market value  inventory =  $160,000

to find out

Shondee Corporation must add income

solution

we get here Income per year that is

Income per year = (Value under FIFO Method - Value Under Cost Method ) ÷ Number of year      ..............................1

put here value we get

Income per year = \frac{181000 - 160000}{3}

Income per year =   \frac{21000}{3}

Income per year =  $7000

so reported as income for all three years   is $7,000

8 0
3 years ago
Define the term teamwork
Stella [2.4K]

Answer:

helping and communicating

Explanation:

word done by several associates with each doing a part but all subordinating personal prominence to the effeciency of the whole

hope it helps

source: merriam webster

6 0
2 years ago
Read 2 more answers
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