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kozerog [31]
3 years ago
9

Alejandro purchased a building in​ 1985, which he uses in his manufacturing business. Alejandro used the ACRS statutory rates to

determine the​ cost-recovery deduction for the building.​ Alejandro's original cost for the building is​ $500,000 and​ cost-recovery deductions allowed are​ $500,000. If the building is sold for​ $800,000, the tax results to Alejandro areA. $500,000 sec 1245 ordinary income and $300,000 sec 1231 gainB. $800,000 sec 1231 gainC. $500,000 sec 1245 ordinary incomeD. $500,000 sec 1245 ordinary income and $300,000 sec 1250 gain
Business
2 answers:
Ira Lisetskai [31]3 years ago
4 0

Answer:

A

Explanation:

bija089 [108]3 years ago
3 0

Answer:

Option A is the correct one.

$500000 sec 1245 ordinary income and $300000 sec 1231 gain

Explanation:

The total gain is $800000

800000-(500000-500000)

Of the total $800000 gain, $500000 gain will be treated as recapture of the depreciation taken under section 1245 and the remaining $500000 is traested as gain under section 1231 as the depreciatble property is used in business for more than 1 year .

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As an investment vehicle, and regarding the tax consequences, real estate investment trusts (reits) are organized as:____.
Fed [463]

As an investment vehicle, and regarding the tax consequences, real estate investment trusts (REITs) are organized as REITs.

As the name suggests, REITs are organized as trusts. The assets held in the trust and the distributions made can affect the tax consequences of the trust. As an investment vehicle, shares are sold to investors and these shares may trade on stock exchanges.

Real estate investment trusts (REITs) are securities that own and, in most cases, manage income-generating real estate or related assets that trade like stocks on major stock exchanges. Many REITs are registered with the SEC and listed on exchanges.

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8 0
2 years ago
What is the difference between an Oligopoly and a Monopoly?
Sergeeva-Olga [200]

A monopoly and an oligopoly are economic market structures where there is imperfect competition in the market. A monopoly market contains a single firm that produces goods with no close substitute, with significant barriers to entry of other firms. An oligopoly market has a small number of relatively large firms that produce similar but slightly different products. Again, there are significant barriers to entry for other enterprises.

The geographical size of the market can determine whether there is an oligopoly or a monopoly. A firm may dominate an industry in a particular area where there are no alternatives to the same product but have two or three similar companies operating nationwide. Thus, the firm may be a monopoly in a region but operate in an oligopoly market in a larger geographical area.

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8 0
3 years ago
A 13-year bond of a firm in severe financial distress has a coupon rate of 10% and sells for $930. The firm is currently renegot
adoni [48]

Answer:

Stated yield is 11.04%

expected yield is  5.78%

Explanation:

The expected yield to maturity can be computed using the rate formula in excel which is given below:

=rate(nper,pmt,-pv,fv)

nper is the number of coupon interest the bond would pay which is 13

pmt is the amount of coupon interest the bond pays which is $1000*10%=$100

pv is the current price of the bond which is $930

fv is the face value of $1000

=rate(13,100,-930,1000)=11.04%

However the expected yield has the coupon interest reduced to one -half as calculated below:

=rate(13,100*0.5,-930,1000)=5.78%

3 0
3 years ago
Cassie's Quilts alters, reconstructs, and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning, and reconst
Nataliya [291]

Answer:

The correct option is B.

Explanation:

The marginal benefit is the maximum amount which a person or individual is willing to pay in order to have an additional service or benefit. It is the additional satisfaction, which the person receives when an additional service or good is purchased.

So, in this case, Cassie need or require some special fabric which cost her $200 that is the additional amount she need to pay in order to complete the task. But alternatively, she could sell the quilt for $900. Therefore, she had a marginal benefit of $900, if sells the quilt as is now.

3 0
3 years ago
The world’s largest bank. Deutsche Bank set as its objective to make its name more recognizable in the United States. The succes
Vilka [71]

Answer: Planning

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Success depends on the "planning" function they will have to execute the task of sponsoring the golf tournament. Since they must map who will be the main participants and if they could be related to the bank, they must also have the best marketing strategy, place the right advertising in the right places to meet their objectives

6 0
3 years ago
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