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3 years ago

Teresa purchased a necklace for $100 in 1964. In 2014, Teresa gave the necklace to her granddaughter, Lindsey.

Business

1 answer:

padilas [110]3 years ago

8 0

Answer:

d)$1,100 long-term capital gain

Explanation:

Given the information from the question. We know that a long-term capital gain or loss comes from investment that was possessed for a year or longer. However in this case, since the necklace was a gift .Therefore, there were no capital gain in 2014. In 2016, Lindsey sold the necklace for $1200. Therefore, the capital gain on the necklace will calculated as $1200- $100 = $1100. Where the $100 is a cost purchase for the previous owner. Therefore, long-term capital gain is $1100 which is option D.

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Montclair Corporation had current and accumulated E&P of $500,000 at December 31, 20X3. On December 31, the company made a d

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Answer:

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Explanation:

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3 years ago

Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased f

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If Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased from $13,986 to $18,719. During the year, the company issued $25,500 in new equity and paid off $21,700 in long-term debt. What the company's cash flow from assets will be is: $48,371

First step is to calculate the cash flow to creditor

Cash flow to creditors = $21,700 + $29,571

Cash flow to creditors = $51,271

Second step is to calculate the cash flow to Stockholders

Cash flow to Stockholders =$28,400 - $25,500

Cash flow to Stockholders =$2,900

Now let determine the cash flow from assets using this formula

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders

Let plug in the formula

Cash flow from assets = $51,271 + $2,900

Cash flow from assets = $48,371

Inconclusion if Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased from $13,986 to $18,719. During the year, the company issued $25,500 in new equity and paid off $21,700 in long-term debt. What the company's cash flow from assets will be is: $48,371

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