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
zhannawk [14.2K]
3 years ago
9

Gina loaned Tom $50,000. Tom signed a note the terms of which called for monthly payments of $2,000 plus 6% interest on the outs

tanding balance. In 2018, when the balance owing on the loan was $18,000, Tom defaulted on the note. As of the end of 2018, there appeared to be no reasonable prospect of Gina recovering the $18,000. As a consequence, Gina claimed the $18,000 as a nonbusiness bad debt. In 2018, Gina had AGI of $50,000, which included $16,000 of net long-term capital gains. Gina did not itemize her deductions. In 2019, Tom paid Gina $13,000 in final settlement of the loan. How should Gina account for the payment in 2019
Business
1 answer:
Liula [17]3 years ago
7 0

Answer:

Gina must report the $13,000 as income for the current year.

Explanation:

According to the tax benefit rule, any recovered expense ($13,000) must be included as income in the extent at which it resulted in a tax benefit.

Since Gina had a net $16,000 long term capital gains that were offset by her $18,000 loss, the $13,000 will partially replace most of the capital gains that were reduced the previous year.

You might be interested in
Sarah has a toothache. She believes it may be due to her not having regular dental checkups in the past. She now wants to find a
Ilia_Sergeevich [38]

Answer:

Credence properties

Explanation:

Dentistry has a Credence property because it is a Service provided by medical specialized professionals. medical diagnoses and legal services have credence properties, or characteristics. A consumer may find a service with Credence property impossible to evaluate even after purchase and consumption. To reduce this uncertainty, service consumer like Sarah turns to personal sources of information like her friends during the purchase decision process

8 0
2 years ago
Arreaga Corp. has a tax rate of 40 percent and income before non-operating items of $928,000. It also has the following items (g
Sedbober [7]

Answer: $324,800

Explanation:

It is a general Principle that when calculating income tax expense, that the Extraordinary loss is treated separately because it is not a usual thing.

The income gained from changing the Accounting principle is not included as well.

The Taxable income to be recorded therefore is,

Taxable income = Income + Gain on disposal - Unusual loss (due to its infrequency)

Taxable income = 928,000 + 32,000 - 148,000

Taxable income = $812,000

Tax expense would therefore be,

= 812,000 * 40%

= $324,800

$324,800 is the amount of income tax expense Arreaga would report on its income statement.

3 0
3 years ago
Danny's workplace just started casual Fridays. What can Danny now wear to work on Fridays?
babunello [35]
A black suit and tie
8 0
3 years ago
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods
SIZIF [17.4K]

Answer:

LIFO ending inventory $   544.00

Weighted average:      $    565.44‬

FIFO ending invetory:  $   590.00

Explanation:

weighted-average:

1,449 / 41 = 35,34

Ending Inventory

16 x 35.34

LIFo we pick the first 16 units as the latest were sold:

8 units at $ 33  =  $ 264

8 units at $ 35  =  $ 280

Total ending inventory $ 544

FIFo we pick the last as the first one are the first being sold

15 units at 37 = 555

1 unit at 35 =       35

total ending      590

7 0
2 years ago
Read 2 more answers
That afternoon, you meet with the owners privately to discuss the data you received. Which of the factors analyzed do you think
Kazeer [188]

Answer:

From the information from the remaining part of the question. The factor that would affect the success or failure of Caffè Gustoso is the Cultural factor.

Explanation:

Caffè Gustoso an Italian word meaning "Tasty coffee". This tells us that the firm is in the food and beverage industry.

Each of the countries mentioned are found in different continents having diverse cultures.

Key to their success is to know the culture of these countries as regards to coffee.

4 0
2 years ago
Other questions:
  • Your sister recently opened a swanky three-floor cheese market, Fromagerie, which is quickly gaining attention from locals, the
    10·2 answers
  • Agatha's Inc. is about to introduce a new product in the market, but is not sure as to how it should price the product. The comp
    11·1 answer
  • Best’s Fried Chicken just took out an interest-only loan of $50,000 for three years with an interest rate of 8.15 percent. Payme
    13·1 answer
  • How many years would it take for an investment of $280,000 to accumulate to at least $425,000 at 15% per year interest?
    5·1 answer
  • Windsor Manufacturing is considering a project with an internal rate of return of 12%, an annual rate of return of 18%, and a 5-
    9·1 answer
  • Which of the following is TRUE about a promissory note? It makes the borrower personally liable for the debt. It may not be exec
    12·1 answer
  • In general, the production and use of capital ________ the productivity of labor and normally ________ wages.
    12·1 answer
  • During the most recent month, the following activity was recorded: Twenty thousand pounds of material were purchased at a cost o
    12·1 answer
  • Jake owns The Corner Market which he is trying to sell so that he can retire and travel. The Corner Market owns the building in
    14·1 answer
  • Consider an asset with a beta of 1.2, a risk-free rate of 4.4%, and a market return of 12.4%. What is the reward to risk ratio?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!