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
Thepotemich [5.8K]
3 years ago
5

Melba purchases land from Adrian. Melba gives Adrian $225,000 in cash and agrees to pay Adrian an additional $400,000 one year l

ater plus interest at 5%.
a. What is Melba?s adjusted basis for the land at the acquisition date?
b. What is Melba?s adjusted basis for the land one year later?
Business
1 answer:
Scorpion4ik [409]3 years ago
6 0

Answer:

  • Melba's adjusted basis for the land at the Acquisition date is $625000
  • Melba's adjusted basis for the land one year later is $645000

Explanation:

The adjusted basis for a property/land is the net cost of the property after adjusting for factors that might attract tax as related to the land

The adjusted basis for the land at the acquisition date is the net cost of the land at the acquisition date which will be ( $225000 + $400000 ) because that was the net cost of the Land at the date of acquisition before an agreement was later reached by Melba requiring him to pay $400000 plus an interest of 5%

Hence the adjusted basis for the land one year later will be

=  ( $225000 + $400000 ) + 5% of $400000

= ( $625000 ) + $20000

= $645000

You might be interested in
When a line cook in a restaurant uses raw meat to cook a hamburger that becomes part of the restaurant's Super Burger Special, t
gulaghasi [49]

Answer:

Transformation process.

Explanation:

When a line cook in a restaurant uses raw meat to cook a hamburger that becomes part of the restaurant's Super Burger Special, the cook is taking part in a transformation process.

A transformation process can be defined as the capabilities possessed by an organization, which are then integrated into technology, internal processes, and management, for the singular purpose of converting inputs into outputs in order to meet the needs or requirements of their customers.

In this scenario, the cook uses raw meat as an input in the creation of an output, which is the restaurant's Super Burger Special.

7 0
3 years ago
Monsters Incorporated (MI) in ready to launch a new product. Depending upon the success of this product, MI will have a value of
irga5000 [103]
A and then d i’m pretty sure
3 0
2 years ago
From the information given below construct a cash budget for five months period starting form May 20X1 till September. MONTH AND
Alenkinab [10]

Answer:

Cash Surplus  May   $83,300   June    $  61,600   July    $33,000  

Aug  $25,500        Sept $  3650

Explanation:

MONTH AND YEAR          PROJECTED SALES        FIRST MONTH      

                                                                                   COLLECTIONS (80%)

April 20X1                               $ 140,000                   112,000

May 20X1                                 130,000                      104,000

June 20X1                                90,000                        72,000

July 20X1                                  65,000                         52,000

August 20X1                            84,000                         67,200

September 20X1                      95,000                          76,000

October 20X1                          160,000                         128,000  

November 20X1                      200,000                        160,000

December 20X1                       240,000                       192,000

January 20X2                            190,000                      152,000  

<u><em>First we find the monthly cash collections 80 % in the month of sales , 10% in the second month , 5% in the third and 5 % in the fourth . We have summed them up in the following table.</em></u>

Sales Collections

                          MAY        JUNE      JULY        AUGUST         SEPT

Particulars

1st Month         104,000     72,000     52,000   67,000      76,000

Collections

2nd Month      14,000       13,000       9000      6500         8400

3rd Month                         7000         6500       4500         3250

<u>4th Month                                            7000      6500         4500</u>

Total

Collections       118,000      92,000    74,500    84,500      92,150

<u><em>Now we prepare the cash budget deducting payments from collections and maintaining beginning and ending balance.</em></u>

<u>Cash Budget</u>

                    <u>  MAY        JUNE      JULY        AUGUST         SEPT</u>

<em>Particulars</em>

Opening          10,000     10,000     10,000      10,000        10,000

Add Total

Collections       118,000      92,000    74,500    84,500      92,150

Less Closing    10,000        10,000       10,000      10,000      10,000

<u>Less Payments34,700        30,400     41,500      59,000       88,500 </u>

<u> Cash Surplus    83,300        61,600     33,000   25,500       3650</u>

<u />

4 0
3 years ago
Why would a home buyer choose an adjustable-rate mortgage?
REY [17]

Answer: A

Explanation:

The borrower can adjust the monthly payment depending on his or her income.

8 0
3 years ago
Read 2 more answers
Dakota Company had net sales (at retail) of $260,000.
disa [49]

Answer:

$35,860  

Explanation:

The computation of the ending inventory using the retail inventory method is shown below

Particulars                      Cost          Retail

Opening Inventory(A)   $63,800    $128,400

Purchases(B)                 $115,060    $196,800

Goods available

C=(A-B)                         $178,860     $325,200

Cost ratio

($178,860 ÷ $325,200 × 100) 55%  

Sales at retail (D)                            $260,000

End, Inventory at Retail                     $65,200

($325,200 - $260,000)

End, Inventory at Cost    $35,860  

($65,200 × 55%)

8 0
3 years ago
Other questions:
  • C. calculate the dollar value of us bonds held by the chinese government. explain how you determined your answer. identify the r
    10·2 answers
  • If annual demand is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, which of t
    6·1 answer
  • Planning for the possibility that the plumbing in your house needs repair is part of a plan for _____. a. financing b. managing
    13·2 answers
  • ________________________ diagnose, replace, maintain, identify faults with, and repair electrical wiring and computer-based equi
    10·1 answer
  • Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.90; direct
    13·1 answer
  • Which term describes a person's previous pattern of borrowing and repaying? A. credit practice
    11·2 answers
  • Answer the question on the assumption that the legal reserve ratio is 20 percent. Suppose that the Fed sells $500 of government
    13·1 answer
  • uses a periodic inventory system. The company has a beginning inventory of 350 units at $6 each on January 1. Hentertainment pur
    7·1 answer
  • Earnings of workers are typically decreased by
    12·1 answer
  • One of the more crucial issues within supply management involves encouraging or helping the firm's suppliers to perform in some
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!