Answer:
C) $0 $285,000
Explanation:
The §121 exclusion establishes that homeowners can exclude from their capital gains taxes the sale of their property for a maximum of $250,000 gain (or $500,000 for joint filers) if they meet two criteria:
- they owned the property for at last 5 years
- they use the property as main residence for at least 2 years (they can aggregate time periods).
So if Eric and Katie use the §121 exclusion they wouldn't pay any capital gains tax ($500,000 is higher than $375,000).
If they decide to forgo the §121 exclusion, then they will have to pay taxes for a gain of:
capital gain = net sale price - asst basis
capital gain = ($375,000 - $10,000) - $80,000 = $365,000 - $80,000 = $285,000
Answer:
D Typically fitting an organiatins existing business processes
Explanation:
ERP are business process management soft wares. It allows the organization to use a system of integrated application to automate and mange the back office work related to services, human resources and technology.
It utilizes centralized database for business processes to simplify the workflow and reduce the manual labor. Such software have dashboards where the users can have a look at the real-time data that is collected from various business processes to measure profitability and productivity. Odoo, SAP Business One, SAP ERP and Microsoft Dynamics are some ERP soft wares.
Answer:
Year2= $180,000
Explanation:
Giving the following information:
The cost of an asset is 1,100,000 and its residual value is 140,000 estimated useful life of the asset is eight years.
To calculate the depreciation expense for each year, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year1= [(1,100,000 - 140,000)/8]*2= 240,000
Year2= [(960,000 - 240,000)/8]*2= $180,000
Answer:
Under current tax law, no option is correct. Before 2018, option C would have been right.
Explanation:
Currently under the Tax Cuts and Jobs Act (from Jan. 2018 until Dec. 2025) you can only deduct interests on mortgages used to purchase, build or improve your home. In this case, Jorge will only be able to deduct the interests paid on the $130,000 he owed for the first mortgage.
Interests on home equity loans will again be deductible (up to $100,000) starting Jan. 2026.
