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
ra1l [238]
3 years ago
11

Mitchell, a calendar year taxpayer, is the sole proprietor of a fast-food restaurant. His adjusted basis for the building and th

e related land is $450,000. On March 12, 2017, state authorities notify Mitchell that his property is going to be condemned so that the highway can be widened. On June 20, Mitchell's property is officially condemned, and he receives an award of $625,000. Because Mitchell's business was successful in the past, he would like to reopen the restaurant in a new location a. what is the earliest date Mitchell can acquire a new restaurant and qualify for § 1033 postponement? March 12, 2017 Feedback Check My Work b. On June 30, Mitchell purchases land and a building for $610,000. Assuming that he elects postponement of gain under § 1033, what is his recognized gain? Mitchell's recognized gain is $ Feedback Check My Work c. What is Mitchell's adjusted basis for the new land and building? Mitchell's adjusted basis for the new land and building i$450,000 V Feedback Check My Work d. If he does not elect § 1033, what are Mitchell's recognized gain and adjusted basis? If Mitchell does not elect § 1033, his recognized gain is , and his basis for the new land and building is
Business
1 answer:
Novay_Z [31]3 years ago
6 0

Answer:

(a) March 12, 2017

(b) Recognized gain = $15,000

(c) Adjusted basis = $450,000

(d)   Recognized gain = $175,000

      Mitchell basis = $625000

Explanation:

(a)  March 12, 2017 is the earliest Mitchell can acquire a new restaurant and qualify for § 1033 postponement

(b) Assuming that he elects postponement of gain under § 1033, the recognized gain is calculated as;

 Recognized gain = Award received - cost of land

                               =$625000 - $610,000

                              = $15,000

(c) From the question, Mitchell's adjusted basis for the new land and building is $450,000

(d) If Mitchell does not elect § 1033, his recognized gain is calculated as;

Recognized gain = Award received-  adjusted basis for the building

                            =$625,000 - $450,000

                            =$175,000

Also,Mitchell basis for the new land and building is $625000

You might be interested in
You are a junior in college. You sent your resume to a half-dozen companies hoping to get a summer internship. Two weeks ago XYZ
zlopas [31]

Answer:

I would politely reach out to XYZ organization and let them know I won't be taking them on their offer

Explanation:

In this particular situation, there is no legal binding in this agreement to start work. There is no responsibility from me to XYZ corporation.

If this new offer excited me more than what XYZ corporation has offered, then I have to decide which company i would decide to do my internship with. So I would have to politely decline the offer from XYZ.

3 0
3 years ago
_______ planning develops alternative courses of action that may be used in a specific situation when things do not go according
AleksandrR [38]
Pre- is probably the answer, I’m sorry if it’s wrong.
5 0
3 years ago
The Comil Corporation recently purchased a new machine for its factory operations at a cost of $328,325. The investment is expec
Solnce55 [7]

Answer: 15%

Explanation:

IRR is the discount rate that makes the NPV equal zero. Required rates of return that are less than the IRR will therefore result in a positive NPV and those that are higher will result in a negative NPV.

Use Excel to find the IRR.

= IRR(-328325,115000,115000,115000,115000)

= 15%

As the required rate of 13% is less than the IRR of 15%, the new machine will have a positive NPV.

6 0
3 years ago
You are a vice president in charge of personnel at a large manufacturing company. in-house detectives inform you that gates, an
andre [41]

Based on the situation above, the notices shouldn’t be posted because if the sign has been posted, this will only result to giving rise to a claim of defamation by which this is an act of destroying another individual’s reputation.

6 0
3 years ago
Specialty stores like Lids carry ________ with ________. A. wide product lines; shallow assortments B. narrow product lines; sha
4vir4ik [10]

Answer:

narrow product lines; deep assortments

Explanation:

product line is group of same type of product selling under a same brand name.

narrow and wide product line is defined on the basis of number of type of product being sold by a retailer.

Narrow product line is a retailing strategy which means that few type of products which is being sold by a retailer.

Example: Pizza hut which sells only limited number of eatables thus they have narrow product lines

Wide product line means very high number of different type of product is being sold by the retailer.

Example:wall mart which sells wide number of products

Assortment is strategy in retail which defines number of different brands of same type of product which is being sold by a retails.

It is of two types

shallow assortments: It means very few brands of same type of product is offered by a retailer.

deep assortment: It means large of number of different brand of same type of product is being sold by a retailer.

Specialty stores are store which sell only limited type of product but they offer wide variety of choices of brand for the products which they sell. In retail marketing term they keep narrow product line but deep assortments as mentioned in the definitions above

Since Lids is a specialty store the correct option would be narrow product line, deep assortments.

4 0
3 years ago
Other questions:
  • Brandy enterprises discarded a computer that was fully depreciated and had no residual value. as a result of this​ transaction,
    10·1 answer
  • _________are places that sell merchandise from a single manufacturer, usually at lower prices than other retailers.
    7·2 answers
  • A bussiness reports profits when ___ are greater than___.
    8·1 answer
  • 8. At the Penalty APR rate of 28.99% and a balance of about $1800,
    7·2 answers
  • Which of the following statement is not true about the Project stakeholders?
    13·1 answer
  • 3. The CAPM suggests that securities having more systematic risk than the market should typically also earn a higher risk premiu
    8·1 answer
  • When preparing an advertisement, an investment adviser whose principal business is rendering advice to customers about securitie
    10·1 answer
  • Which of the following is true of email?
    10·1 answer
  • Which type of tax is paid by businesses on their profits to federal or state governments?
    10·1 answer
  • If the price is raised to $7, what would be the result in the market place? (Surplus, Shortage, or Equilibrium).
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!