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OlgaM077 [116]
3 years ago
12

Joseph exchanged land (tax basis of $34,000), that he had held for 4 years as an investment, for similar land valued at $42,000

which was owned by adrian. in connection with this transaction, adrian assumed joseph's $11,000 mortgage. as a result of this transaction joseph should report a long-term capital gain of:
Business
1 answer:
brilliants [131]3 years ago
6 0
<span>Joseph should report a long-term capital gain of $8,000. The fact that Adrian assumed the mortgage does not affect Joseph's tax basis. The only relevant facts here are the fact that the land acquired in the exchange has a value of $42,000, and the tax basis of the parcel exchanged is $34,000. $42,000 - $34,000 = $8,000.</span>
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Your firm is thinking about investing ​$200 comma 000200,000 in the overhaul of a manufacturing cell in a lean environment. Reve
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Answer:

EAW = -$17,545.71

Explanation:

initial investment = $200,000

cash inflows;

  • Year 1 = $33,000
  • Year 2 = $44,000
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  • Year 4 = $66,000
  • Year 5 = $77,000
  • Year 6 = $88,000
  • Year 7 = $99,000
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cash outflows:

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  • Year 2 = $30,000
  • Year 3 = $40,000
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  • Year 5 = $60,000
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  • Year 7 = $80,000
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EAW = equivalent annual worth = equivalent annual benefits - equivalent annual costs

to determine the EAB we must first find the PV of the cash inflows using a financial calculator = $408,348.84

EAB = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($408,348.84 x 10%) / [1 - (1 + 10%)⁻⁹] = $70,905.91

to determine the EAC we must first find the PV of the cash outflows (including initial outlay) using a financial calculator = $509,395

EAC = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($509,395 x 10%) / [1 - (1 + 10%)⁻⁹] = $88,451.62

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Assume Digby Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic ini
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Answer:

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EXISTING WORKFORCE = COMPLEMENT = 392 (SEE SECOND ROW, FOURTH COLUMN)

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SO NEW WORKFORCE = 392 -10% = 392-39.2 =352.8

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