Answer:
$ 1,586.8743
Explanation:
Calculation to determine what will be the value of the certificate when it matures
Compounded annually
Principal P= 1000
Rate r=0.08
Period n = 6
Using this formula
A = P (1+r)^n
Let plug in the formula
1000 (1.08)^6
= 1586.8743
Therefore what will be the value of the certificate when it matures is $1586.8743
Answer: A. $25,000 B. $90,000 C. $25,000
Explanation:
A.
Land $100,000
Stock 25,000
Amount realized 125,000
Less: Adjusted basis (90000)
Recognized gain $35,000
When you receive book in an exchange which is similar or like kind, then the recognized gain is the lesser of either the boot or recognized gain. Here the lesser is the boot received which is $25,000. Therefore, recognized gain is $25,000
B.
Because the recognized gain is taken as $25,000 rather than $35,000. The $10,000 amount is considered as postponed gain. Hence,
$100,000 (land worth) - $10,000 (postponed gain) = $90,000 - basis of new land.
C.
The worth of the stock is the basis in the stock received. Which is $25,000
Answer:
Kelli can deduct up to $6,000 in expenses from her net income, so her net income for this year would be $0. She could have deducted an even larger amount if her net income had been higher (up to $12,000 in deductions), since you can only deduct up to the amount of your net income.
