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Dimas [21]
4 years ago
7

Tom sold his home for $140,000 paying a 7% real estate commission. He bought the home for $45,000, paid $2,000 in closing costs,

and added a new fireplace and family room for $35,000. After figuring the adjusted basis for this home, what is the amount of taxable gain?
Business
1 answer:
Igoryamba4 years ago
7 0

Answer:

$48,200

Explanation:

Given:

Selling price of home = $140,000

Acquisition price = $45,000

Closing cost = $2,000

Cost of fireplace and family room = $35,000

Real estate commission = 0.07 × 140,000 = $9,800

Total adjusted basis  = 45,000 + 2,000 + 35,000 + 9,800

                                   = $91,800

Taxable gain = Selling price - adjusted basis

                      = 140,000 - 91,800

                      = $48,200

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3 years ago
Groups such as the Ku Klux Klan have been determined by the Courts to be religious organizations, and as a result an employer mu
NARA [144]

Answer: False

Explanation:

Title VII of the Civil Rights Act of 1964 expressly forbids the discrimination of groups based on race which is what the Ku Klux Klan stands for.

As a result, the employer does not have to accommodate the employee's deeply held beliefs if they will cause a violation of Title VIII in the operations of the company.

4 0
3 years ago
Sale of short-term stock investments $ 3,000
Igoryamba

Answer: $400

Explanation:

Cashflows from Investing Activities refer to those that have to do with the purchase or sale of fixed assets as well as other company securities.

Cashflows from investing activities here are:

= Sale of short term stock investments - Purchase of used equipment

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4 0
3 years ago
The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bi
Ainat [17]

Answer:

<u>Income statement for Rushmore Biking Inc. for the month ending February 28.</u>

Sales                                      $910,000

Less Cost of Sales              ($550,000)

Gross Profit                          $360,000

Less Expenses

Selling Expenses                 ($185,000)

Administrative Expenses     ($90,000)

Net Income / (loss)                 $85,000

Explanation:

Perpetual inventory methods<em> keeps the record of inventory cost after every sale.</em>

Thus we were already given the costs associated with the sale of bikes (cost of sales) and there was thus no need to got the longer router of determining this amount using the manufacturing cost schedule.

5 0
3 years ago
A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2016 found a job paying $
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Answer:

1 is the base index of CPI, so a value of 0.418 means that the prices were 0.418 times the base index and 2.4 means that prices were 2.4 times the index

The 1972 graduate's job paid $7200 in nominal terms and (7200/0.418) in real terms

Real terms 1972= 17224

Real terms 2016= 25000

17224/25000= 68%

The 1972 graduate's job paid 68 percent of the 2016 graduates job in real terms.

Explanation:

6 0
3 years ago
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