1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Natali5045456 [20]
3 years ago
12

On January 10, 2017, a fire destroyed a warehouse owned by NP Company. NP’s adjusted basis in the warehouse was $530,000. On Mar

ch 12, 2017, NP received a $650,000 reimbursement from its insurance company. In each of the following cases: Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. NP’s board of directors decided not to replace the warehouse. Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. On January 2, 2019, NP paid $700,000 to acquire a warehouse to store its inventory. Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. On February 8, 2020, NP paid $700,000 to acquire a warehouse to store its inventory.
Business
1 answer:
OLEGan [10]3 years ago
3 0

Answer:

A. $120,000

B. $0

C. $120,000

Explanation:

A. Calculation to Determine NP’s recognized gain

Using this formula

Recognized gain =Insurance reimbursement-Adjusted basis

Let plug in the formula

Recognized gain =$650,000-$530,000

Recognized gain=$120,000

B. NP will not recognize the realized gain of the amount of $120,000 ($650,000-$530,000) reason been that NP have spent the amount of $650,000 on the replacement of property.

C. NP will have to recognize the whole amount of the gain realized gain which is $120,000 ($650,000-$530,000) reason been that replacement property was not acquired within the taxable year when the gain was been realized

You might be interested in
What key factor kept the copernican theory from being widely accepted at first?
Amiraneli [1.4K]
The key factor that kept the Copernican is that Roman Catholic Church had decided that earth was the center of the universe and contrary opinions were heresy. The Copernican also proposed that a heliocentric system had decided the the Earth is the center of the universe and all of the contrary opinions regarding this was false.
7 0
3 years ago
Moon, a farmer, needs to install a two-thousand-pound piece of equipment in his barn. This will require lifting the equipment th
kirill [66]

Answer: c) Uniform Commercial Code

Explanation:

it has different articles e.g for sales of goods, warranties and disclaimer (seller assuring buyer of the quality of product). And this is what has transpired between Moon and Davidson

5 0
3 years ago
The finance minister of a country considers several large, state-owned iron manufacturing units to be inefficient and a source o
lions [1.4K]

Answer: (D) Privatization

Explanation:

 The privatization is one of the transferring process in which the various types management, industries and the enterprise are get transfer from the public to the private sectors.

In which the public sector is basically refers to the economical system that is executed by the various types of government agency.

The privatization process is basically help in increasing the growth and the economical efficiency in the system.

Therefore, Option (D) is correct.

3 0
4 years ago
Wally is employed as an executive with Pay More Incorporated. To entice Wally to work for Pay More, the corporation loaned him $
yuradex [85]

Answer:

Wally and Pay More Incorporated

The loan resulted in any income to Wally of $3,960 ($4,320 - $360), which would have been a cost he would have incurred had he borrowed the loan at the prevailing federal interest rate.

On the other hand, it resulted in a lost revenue (expense) of $3,960 ($4,320 - $360) which Pay More Incorporated could have earned if it had loaned it at the prevailing federal interest rate.  This expense is a compensation expense.

Explanation:

Pay More's Loan to Wally = $36,000

Interest rate = 1%

Prevailing interest = $4,320

Interest paid = $360

Difference between prevailing interest and interest paid by Wally = $3,960 ($4,320 - $360).

8 0
4 years ago
As a new supervisor, you need to introduce yourself to your team of ten employees. the best medium for this type of non-routine
Stells [14]
The answer to this question is that the best medium would be a face to face meeting. A face to face meeting is a meeting where in group of people are being held in a specific meeting room to meet and discuss a specific agenda. Face to face meetings are said to be the best type of meeting because this ensures engagement and it is more efficient.
7 0
3 years ago
Other questions:
  • An entity has failed to provide documentation for a newly acquired material asset and informs its auditors that the documentatio
    11·1 answer
  • Bikram Yoga Natick pays taxes on a cash basis so annual membership fees received during the year are included in determining the
    14·1 answer
  • Which do you like better guys DELTARUNE or UNDERTALE?
    8·2 answers
  • What are the major differences between job-order costing and process costing systems? Give an example of a well-known company th
    6·1 answer
  • A manufacturer of a brand of high-end hiking boots and specialized athletic shoes has hired your agency to run a print campaign.
    12·1 answer
  • If the IRS intends to close a Taxpayer Assistance Center, they must notify the public at least _____ days in advance of the clos
    8·1 answer
  • In complete paragraph , explain ome advantage of having a credit card
    5·1 answer
  • Kumaran Pillay has a vegetable stall at the Suva Market. His business has been plagued with under-stocking and over-stocking pro
    7·1 answer
  • A public relations team can do which of the following for a person or an organization?
    5·1 answer
  • when the market rate is 8%, a company issues $50,000 of 9%, 10-year bonds and pay interest semiannually for a selling price of $
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!