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kakasveta [241]
3 years ago
15

On January 1, X9, Gerald received his 50% profits and capital interest in High Air, LLC in exchange for $2,000 in cash and real

property with a $3,000 tax basis secured by a $2,000 nonrecourse mortgage. High Air reported a $15,000 loss for its X9 calendar year. How much loss can Gerald deduct, and how much loss must he suspend if he only applies the tax basis loss limitation? $0, $4,000. $0, $7,500. $0, $15,000. $4,000, $0.
Business
2 answers:
Elan Coil [88]3 years ago
8 0

Answer:

$4,000, $0.

Explanation:

On January 1, X9, Gerald received his 50% profits and capital interest in High Air, LLC in exchange for $2,000 in cash and real property with a $3,000 tax basis secured by a $2,000 nonrecourse mortgage. High Air reported a $15,000 loss for its X9 calendar year.

Basis = Contribution into partnership + Appropriated Profit

Basis = ($2,000 equity + $2,000 real estate) + $0 = $4,000

There was no cash distribution during the year hence, the investor can claim a loss of $4,000

Expenses to be deducted but there were no expenses

Therefore net reportable loss = $4,000 Basis - $0 Expenses incurred = $4,000

Alenkinab [10]3 years ago
4 0

Answer:

$4000 can be deducted now and the remaining $3500 would be suspended

Explanation:

Given that:

Gerald profits and capital interest in High Air = 50%,

LLC in exchange for $2,000 in cash and real property

tax basis = $3000,

non recourse mortgage = $2000

High Air loss for its X9 calendar year = $15000

Therefore Gerald initial tax basis = cash and real property LLC exchange + tax basis - non recourse mortgage + (50% × $2000) = $2000 + $3000 - $2000 + (0.5 × $2000) = $3000 + $1000 = $4000

Gerald initial tax basis is $4000

Also Gerald X9 loss = 50% of $15000 = 0.5 × 15000 = $7500

The amount Gerald can deduct is limited to his basis in high air, therefore $4000 can be deducted now and the remaining ($7500 - $4000 = $3500) would be suspended

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Hard Candy is a Florida company that sells nail polish and women’s cosmetics throughout the United States. The singer Madonna ow
Mekhanik [1.2K]

Answer:

No, Madonna cannot be sued in Florida regarding this specific case.

Explanation:

This was a real case that Madonna actually won in Florida during 2015. Judge Cecilia Altonaga, US District Court of Miami, ruled in favor of Madonna, her manager (Guy Oseary) and her company MGHCandy in the lawsuit filed by Hard Candy Cosmetics due to a lack of jurisdiction.

This case was transferred to the Los Angles District Court.

5 0
3 years ago
Phoenix Agency leases office space for $7,000 per month. On January 3, Phoenix incurs $65,000 to improve the leased office space
Daniel [21]

Answer:

correct option is $13,000

Explanation:

given data

leases office = $7,000 per month

Phoenix incurs = $65,000

yield benefits = 8 years

remaining on its lease = 5 years

solution

we know that The cost of leasehold improvement is depreciate whichever is less    

(a)  Remaining Lease Term      

(b) estimated useful life of improvement

so Annual depreciation of Leasehold Improvement will be here

Annual depreciation of Leasehold Improvement = \frac{65000}{5}

Annual depreciation of Leasehold Improvement = $13,000

so correct option is $13,000

4 0
3 years ago
​Seth, an administrative manager at Seal Inc., is asked to purchase ten printers for the firm's office. He contacts a sales repr
lys-0071 [83]

Answer:

Myro Distributors is a Retailer.

Explanation:

Now, looking at this answer, lets filter out the rest of the options.

A is clearly not correct as the question it self doesn't say anything about Myro producing the goods.

C is somewhat a vague, general answer. Institution? What kind of an institution?

We can't accept D as well. No information in the question lead us to conclude that Myro is a manufacturer.

B on the other hand is a perfect fit. The question itself says that Myro is purchasing from a "Wholesaler".

Retailers purchase goods from wholesalers and sells the products to the final customers at a profit. The key difference between Wholesalers and Retailers is that Wholesalers are not selling to the final customers of a product while retailers sell the product to the final customer. Both are middle men.

In this Scenario, Ink Corp sold the goods to Myro and Myro sold it to Seth right? Now Seth is not selling the printers to anyone, which makes him the final consumer/customer of the product.

3 0
4 years ago
What should you do to elicit the most useful data in your interviews? Ask primarily yes-or-no questions. Ask leading and ambiguo
grin007 [14]

Answer:

Make your questions objective and friendly.

Explanation:

An interview is an essential step in the process of selecting a candidate to fill a position in a company.

Through the interview, verbal and non-verbal data are collected that will help in the relationship between the profile of the interviewed candidate and the profile expected to fill the vacancy.

It is important that the interviewer uses some techniques to make the interview flow effectively, the first of which is to maintain a friendly posture, as it is common for candidates for an interview to feel intimidated or anxious due to the selection process.

It is also essential that the questions are objective and honest, so that there is a correct understanding and the candidate can answer correctly and effectively.

And the interview should be a step that does not cause intimidation and lack of ethics on both sides, it is ideal that the candidate feels motivated to ask relevant questions to answer their doubts, and that the interviewer conducts the interview schedule in an effective way.

5 0
3 years ago
ANSWER NEEDED ASAP!
zheka24 [161]

True because you need a Signature to use it as credit

8 0
4 years ago
Read 2 more answers
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