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Dmitry [639]
3 years ago
12

Olessa, single and age 60, sells her home for $540,000 after living there for 20 years. Her adjusted basis in that home was $220

,000 and she has an additional $10,000 of selling expenses. What is the maximum gain that Olessa must report in connection with the sale of her principal residence?
Business
1 answer:
Karo-lina-s [1.5K]3 years ago
7 0

Answer:

Net gain = $60,000

Explanation:

Given:

Sale value of house = $540,000

Adjusted value = $220,000

Selling expenses = $10,000

Computation of gross profit on the house:

Gross profit on sale = Sale value of house - Adjusted value - Selling expenses

Gross profit on sale = $540,000 - $220,000 - $10,000

Gross profit on sale = $310,000

Maximum limit on gain from sale of house = $250,000(Form number 1040, Schedule D)

Computation of net gain:

Net gain = $310,000 - $250,000

Net gain = $60,000

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You are given the following information for Ted’s Dread Co.: sales = $82,000; costs = $57,700; addition to retained earnings = $
vazorg [7]

Answer:$6,843.33=Depreciation

Explanation:

To Calculate the depreciation expense for the company

Net income = Dividends + Addition to retained earnings

Net income = $3,320 + 7,500

Net income = $10,820

Also,

Net income = Taxable income - (Taxable income)(Tax rate)

Net income = Taxable income(1 - Tax rate)

Therefore,

Taxable income = Net income / (1 - Tax rate)

Taxable income = $10,820 / (1 - 0.25

Taxable income = $10,820/0.75 =14,426.67

But

EBIT -interest = taxable income,So

EBIT = Taxable income + Interest

EBIT = $14,426.67+3,030

EBIT = 17,456.67

EBIT = Sales - Costs - Depreciation

$17,456.67 = $82000 - 57,700 - Depreciation

$17,456.67= 24,300-Deprecistion

Depreciation =24,300-17456.67 =

$6,843.33

4 0
3 years ago
The beef industry denies that "mad cow" disease is an issue in the U.S., resists increased inspections of cattle arriving slaugh
vfiekz [6]

Answer: Reactive Public Relation

Explanation:

Here, in this particular case we can state that the reactive public relation tends to best describe this approach taken by the industry. Traditionally, the reactive public relation is known to be referred when there is a requirement for crisis management. For several organizations , the known resort still tends to be reactive public relation.

4 0
3 years ago
In April​ 2017, the​ working-age population of the United States was 254.6 million. The​ working-age population is divided into
nordsb [41]

population of the United States was 254.6 million. The​ working-age population is divided into those in the labor force​ (160.2 million) and those not in the labor force​ (94.4 million). The labor force is divided into the employed​ (153.2 million) and the unemployed​ (7.1 million). Those not in the labor force are divided into those not available for work​ (88.7 million) and those available for work​ (5.7 million).​ Finally, those available for work but not in the labor force are divided into discouraged workers​ (0.5 million) and those currently not working for other reasons​ (5.2 million).

Use this data to help determine which one of the following statements is​ true:

The unemployment rate is

7.1 million / 160.2 million×100=4.4%.

The labor force participation rate is

160.2 million /

254.6 million×100=62.9%.

N.B

Check the attachment for full question

Answer:

D. Both A and B are correct

Explanation:

The unemployment rate is 4.4%

That is unemployed/labour force = (7.1million/160.2 million ) * 100 = 4.4%

Labour force participation rate is 62.9%

That is: total labour force /total population = (160.2million/254.6million) * 100 = 62.9%

4 0
3 years ago
How much is ​$100 to be received in exactly one year worth to you today if the interest rate is 20​%?
laiz [17]

Answer:

Final Value= $120

Explanation:

Giving the following information:

How much is ​$100 to be received in exactly one year worth to you today if the interest rate is 20​%.

We need to calculate the future value of the principal and the compounded interest:

FV= PV*(1+i)^n

FV= 100*1.20^1= $120

5 0
3 years ago
If Company A has a lower debt ratio than Company B, then Company A is likely to have __________ than Company B.
kondaur [170]

Answer:

b. a greater ability to borrow

5 0
3 years ago
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