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Alika [10]
4 years ago
13

Bill took out a $100,000 non-recourse loan and bought an apartment building. The building is not security for the loan. Bill spe

nt $25,000 of his own money on repairs before he rented the apartment building to the public. Bill is single, works full-time, and earns $80,000 per year. Bill’s loss from the rental real estate activity, in which he actively participates, is $30,000. He has no passive income. For what amount is Bill at-risk, and how much of Bill’s passive loss from his rental activity is deductible?
Business
1 answer:
natta225 [31]4 years ago
3 0

Answer:

Bill has $25,000 at-risk and he can also deduct $25,000 from his income due to the losses associated with his rental activity.

Explanation:

At risk amounts are the money that investors can lose due to a bad business decision or performance. The maximum amount that an investor can deduct is equal to the at-risk amount that he/she has invested.

Bill's at-risk $25,000 are equal to the money he spent on house repairs.

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The benefits of effective listening are:
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One benefit is that you are helping the other person talk through there problems

strengthen your relationship with that person

Making the other person feel appreciated

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5 0
3 years ago
Suppose you inherit an apartment building from your uncle. You anticipate making some income from the rent on
alexira [117]

Answer:

Would you cut back on making repairs and keeping the building in a safe and

livable condition?

No, I would maintain the building as good as posible.

How might you keep the building in good shape and still turn a profit?

the value of the building will increase over time. Then, is a matter of patience to make a profit out of the sell of it.

Is it possible to manage  the building or change it to make it both livable and profitable?

yes, What usually happens with rent control properties is that the landlords use the building for commercial or create condos use to avoid the law.

5 0
4 years ago
The type of letter of credit that can be split up between many suppliers, each able to present their own documents for payment a
Nastasia [14]

Letter of credit that can be split up between many suppliers, each able to present their own documents for payment and allowing the trader to take his profits from the balance of the credit, is called Transferable Letter of Credit .

Explanation:

Transferable Letter of Credit is a credit document in which the party can transfer the credit in full or partial to another beneficiary.

A transferable credit letter that enables a receiver to further pass all or part of the payment to another supplier in the chain or to some other receiver. This usually occurs when the recipient is merely a conduit to the actual supplier. Such LC allows the beneficiary to have their records, but to further pass the credit.

5 0
3 years ago
Read 2 more answers
If a company uses $1,510 of its cash to purchase supplies, the effect on the accounting equation would be:________
sammy [17]

If a company uses $1,510 of its cash to purchase supplies, the effect on the accounting equation would be One asset increases $1,510 and another asset decreases $1,510, causing no effect.

The relationship between an entity's assets, liabilities, and owner's equity are represented by the basic accounting equation, often known as the balance sheet equation. It serves as the system's cornerstone for double-entry bookkeeping. The total debits and total credit for each transaction are equal.

There are three possible arrangements for the accounting equation:  

  • Assets = Liabilities + Owner's Capital - Owner's Drawings + Revenues - Expenses.
  • Owner's equity = Assets - Liabilities.
  • Net Worth = Assets - Liabilities.

The accounting equation makes sure that every entry in the books and records is verified and that each obligation (or expense) and its associated source, or each item of revenue (or asset) and its source, can be independently verified.

To know more about accounting equations refer to: brainly.com/question/14689492

#SPJ4

6 0
2 years ago
Mentor Graphics Corporation, a supplier of electronic design automation systems, just announced its second quarter results. Acco
saveliy_v [14]

Answer:

1. Which of the excluded items represent ongoing costs of running the business and which are one-time "special" costs?

it depends on the company and the actual transactions, e.g. equity based compensation might be a one time special cost because it occurred only once and is doubtful that it happens again. But if the company regularly rewards its top managers with this type of compensation, then it is an ongoing cost. E.g. Tesla awarded a HHHHUUUUUUGGGGGGGEEEEEEE bonus to Elon Musk (worth hundreds of millions) but it was a one time event. While many companies use equity compensation on a regular basis.

Severance and related employee "rebalancing" costs generally take place when a company fires a lot of people because it is cutting down some division or product line. Hopefully, they should never happen, and if they do, it should be only a one time event.

Fees paid to consultants and interest expenses are ongoing costs that will probably occur in the future.

Losses related to the abandonment of excess facility space and a facility fire should be one time events. It would be really bad for them to keep happening (same as severance and rebalancing costs)

8 0
3 years ago
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