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lions [1.4K]
3 years ago
13

The potentially large amount of taxes due on sale of commercial property has caused investors and policy makers to seek ways to

defer taxes on the disposition of a property. A popular option has become for investors to swap one eligible property for another in order to avoid or defer capital gains taxes. Which of the following methods for deferring taxes does this describe?
A. Installment sale.
B. Fully-taxable sale.
C. Like-kind exchange.
D. Sale leaseback.
Business
2 answers:
LuckyWell [14K]3 years ago
8 0

Answer:

C. Like-kind exchange

Explanation:

Like-kind exchange is also called 1031 exchange. It is a United Sates tax law. It is a tax deferred transaction which permits the transference of an assets as well as the purchase of another asset that is similar to it without having to generate capital gain tax liability from selling the first asset.

For a real estate property to be qualified for a like-kind exchange, such property must be put to use either in trade, investment or business, the property being sold must not be a personal residence, it must be an investment property, and the one being purchased must be similar to the one that was sold.

lukranit [14]3 years ago
7 0

Answer:

C. Like-Kind exchange

Explanation:

Like kind exchange is a type of deferred tax transactions that occurs when the disposal of an asset and the acquisition of another similar asset without generating a capital gains tax liability from the sale of the first asset. In like kind exchange, an individual can defer paying taxes upon the sale of a property by swapping your property for similar property owned by someone else. An investor is able to swap one eligible property for the other with the sole aim of avoiding or deferring taxes.

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You have $1,000,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 18 percent and Stock Y w
pogonyaev

Answer:

D. $375,000

Explanation:

Expected return of 13% for $1,000,000 will be $130,000

If we invest $375,000 in Stock X, our expected return based on 18% will be $ 67,500 and the remaining $625,000 will be invested in Stock X, therefore expected return based on 10% will be $ 62,500 and thereby giving the total return of $130,000 which is 13% of $1,000,000 and hence $375,000 will be invested in Stock X

8 0
3 years ago
A practical approach that is frequently used by managers when setting a normal selling price is the ______
zhenek [66]

This combined process is called the market-related cost approach and is primarily used when valuing residential property The Valuation Process.

<h3>What is Valuation Process?</h3>

Analysts use valuation to determine the current or expected value of a stock, company, or asset. The goal of valuation is to appraise a security and compare its calculated worth to the current market price in order to identify promising investment possibilities.

The appraisal procedure starts when an appraiser finds the appraisal problem and finishes when they present their findings to you. Estimating market value is the most common appraisal assignment.

A valuation is used to assess the efficacy of your strategic decision-making process and to provide the opportunity to track performance in terms of expected change in value rather than just revenue.

To know more about Valuation Process follow the link:

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8 0
2 years ago
An advantage of the fixed-period inventory system is that______.
nadya68 [22]

Answer:

The correct answer is (B)

Explanation:

There are various advantages of fixed inventory stock. The fixed-period stock and inventory framework requires more safety stock than a fixed-amount framework. A stock out can happen during the audit time just as during the lead time.  A significant advantage of fixed period stock is that, there is no physical check of stock when products are withdrawn.It helps to save time and money.

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3 years ago
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natita [175]

Answer:

Follows are the solution to this question:

Explanation:

The price of one share plus one choice for the index fund is $112. Its distribution of HPR probabilities on the portfolio is:  

\boxed{\left \begin{array}{cccc} \text{economy states} & \text{Probability}& \text{Endig price+Put+Dividend}&HPR\\ Excellent &0.25& \$ 131.00& \frac{(131-112)}{112} = 17\% \\Good &0.45&\$ 114.00& \frac{(114-112)}{112} = 1.8 \%  \\poor &0.25& \$ 113.00& \frac{(113.50 -112)}{112} = 1.3 \%  \\ Crash&0.5& \$ 112.00& \frac{(112-112)}{112} = 0.0 \% \end{array}\right} The chances of dollar return distributions on the CD plus call option can be defined in the attached file please find it:

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3 years ago
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Yes it is hope this helps
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