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Nostrana [21]
3 years ago
6

Claude purchased raw land three years ago for $1,500,000 to develop into lots and sell to individuals planning to buildtheir dre

am homes. Claude intended to treat this property as inventory, like his other development properties. Beforecompleting the development of the property, however, he decided to contribute it to South Peak Investors LLC when itwas worth $2,500,000, in exchange for a 10 percent capital and profits interest. South Peak’s strategy is to hold land forinvestment purposes only and then sell it later at a gain.a) If South Peak sells the property for $3,000,000 four years after Claude’s contribution, how much gain or loss isrecognized and what is its character? [Hint: See §724.]b) If South Peak sells the property for $3,000,000 five and one-half years after Claude's contribution, how much gain orloss is recognized and what is its character?
Business
1 answer:
dmitriy555 [2]3 years ago
3 0

Answer and Explanation:

Clude had purchased the raw land three years ago for $150000 and treated it like a inventory. she constributed the property to south peak investments LLC in exchange for 10% profit interest. but south peak will hold it for investment purpose.

a) after 4 years from Cludes contribution south peak sells the land for $3000000 the gain would be $3000000 - 1500000 = 1500000. the character is of long term capital gains since ths LLC held ot as investment asset

b) if south peak sells the asset after 5 years six months then also the gain would be sa,e and character would be same since LLC has held the asset fore investments purpose and at the same time its holding period is above one year.

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Richard has $652 in his account and is planning a road trip. He looks at how expensive hotels and sightseeing costs are in certa
Cloud [144]

Answer:

The answer is: Detroit  $196.87

Explanation:

We first must add the cost of visiting the five cities:

Detroit            $196.87

Pittsburgh      $180.32

St. Paul          $102.87

Cincinnati      $155.81

<u>Richmond      $211.86      </u>

Total cost     $847.73

Then we find what is the difference between the total cost and the road trip budget: $847.73 - $652 = $195.73

The cheapest city that Richard can drop is Detroit, by doing so his total expenses will be $650.86, which is below his budget.

4 0
3 years ago
Read 2 more answers
SME Company has a debt-equity ratio of .57. Return on assets is 7.9 percent, and total equity is $620,000. a. What is the equity
PtichkaEL [24]

Answer:

(i) 1.57

(ii) 12.40%

(iii) $76,898.60

Explanation:

Debt-equity ratio = debt/equity

Hence debt= 0.57 equity

= (0.57 × 620000)

= $353,400

Total assets = debt + equity

                     = (353400+620000)

                    = $973400

1. Equity multiplier = Total assets ÷ Equity

                               = $973,400 ÷ 620,000

                               = 1.57

3.  ROA = net income ÷ Total assets

net income = ($973,400 × 0.079)

                    = $76,898.60

2. ROE = net income ÷ Total equity

= $76,898.60 ÷ 620,000

= 12.40%(Approx).

7 0
3 years ago
Suppose that a bank has loaned money to two businesses: a trustworthy computer manufacturer and a risky mining venture. Unfortun
Vladimir [108]

Answer:

The situation is called insolvency. bank is unable to pay to depositor.

Explanation:

The situation is called insolvency. insolvency is refer to the situation when debtor is unable return its debt.  The same is happened in the given situation. In the above case due to not paid by manufacturing unit, bank is unable to pay to depositor.

Insolvency is refer to that critical condition when debtor unable to pay amount to depositor. In the above given case even if bank want to sell its all assets it cannot cover its liabilities.

3 0
3 years ago
A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being
Gwar [14]

Answer:

It is referred to as product differentiation.

Explanation:

Product differentiation is a strategic type of marketing in which a firm uses campaigns and promotions to highlight features that make its product unique as well as the benefits of using the product or service.

This kind of marketing differentiate the firm's product or services from those of competitors and makes consumer perceive such differentiated product or service as better than other similar competing products.

3 0
3 years ago
Read 2 more answers
What common flaw has been found in research studies funded by pharmaceutical companies?
marissa [1.9K]

The common flaw that was found in research funded by pharmaceutical companies was a lack of transparency.

<h3 /><h3>Why is transparency needed in the pharmaceutical industry?</h3>

It is essential that there is greater awareness, control and review of pharmaceutical research, as this industry directly impacts the health and quality of life of individuals, and must be an ethical and accessible means to the population.

Therefore, the lack of transparency in the pharmaceutical industry can occur due to centralization and conflict of interests, in addition to bribery and fraud, and must be duly fought by control, legislation and punishment for such actions.

Find out more about research studies here:

brainly.com/question/968894

#SPJ1

3 0
1 year ago
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