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kirza4 [7]
3 years ago
15

Mr. and Mrs. Jones sold their principal residence for $750,000. They had lived in their residence for 20 years, and it had an ad

justed basis of $210,000. The Joneses have decided not to purchase a new home and will instead rent a condominium on the beach. What amount of gain must they recognize on this transaction?
a. $0b. $540,000c. $750,000d. $40,000
Business
1 answer:
IceJOKER [234]3 years ago
7 0

Answer:

D) $40,000

Explanation:

The Joneses qualify for a Section 121 exemption since they lived at their house for 20 years. They are exempted from paying capital gains taxes on the first $500,000 ($250,000 if single) in realized gains from selling their home.

Joneses taxable gain = $750,000 (sales price) - $210,000 (basis) - $500,000 (section 121) = $40,000

They will have to recognize only $40,000 in gains.

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The 8.5 percent bond of Fitness Center, Inc has a face value of $1,000, a maturity of 25 years, semiannual interest payments, an
Aleonysh [2.5K]

Answer:

Price of bond=$691.034

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).

Value of Bond = PV of interest + PV of RV

Let us assume the bond had a per value of 1000 and also redeemable at par

The value of the bond  can be worked out as follows:

Step 1  

<em>Calculate the PV of interest payments</em>

semi Annual interest payment

= 8.5% × 1000 × 1/2=    42.5

PV of interest payment

= 42.5  × (1-(1.0629)^(-25×)/0.0629)

=643.6780

Step 2

PV of redemption Value

PV = 1000 × (1-(1.0629)^(-25×2)  = 47.35

Step 3

Price of bond

=643.678 + 47.356

=$691.034

Price of bond=$691.034

3 0
3 years ago
The district director of 5 mortgage origination offices staffed by bank associates who cold call potential customers in an attem
Artist 52 [7]

Answer:

Revenue Centre

Explanation:

Revenue Centre is that division or department of the firm which generate or create revenue through sale of the goods and the services. The district director who is managing the 5 mortgage origination offices that is staffed by the bank associates. So, most likely responsible for a revenue centre of the business. And who works for revenue centre is only responsible or accountable for the revenue only.

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Will and Bill both enjoy sunshine, water, and surfboards. Thus, the two friends decided to create a business together renting su
geniusboy [140]

Answer:

E. general partnership

Explanation:

4 0
3 years ago
g The $1,000 face value bonds of Trident Corporation have coupon of 5.5 percent and pay interest semiannually. Currently, the bo
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Answer:

The answer is 5.73%

Explanation:

Given Coupon rate=5.5%; Years of maturity= 12years, Face value bonds= $1,000, Price=98.2

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PMT= (Face value * coupon rate)/2= (1000*5.5)/2= 5500/2= 2.75

Therefore:

Rate = (NPER, PMT, -Price, Face value)= (24, 2.75, -98.2, 1000)= 2.87%

Yield to maturity= Rate *2= 2.87*2= 5.73%

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George is an entrepreneur who owns a large office that has a few meeting rooms. Almost every day, he sees that there are conflic
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D. He is trying to improve the employees speaking skills so there is less conflict
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