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natita [175]
3 years ago
11

Paul sells one parcel of land (basis of $100,000) for its fair market value of $160,000 to a partnership in which he owns a 60%

capital interest. Paul held the land for investment purposes. The partnership is in the real estate development business, and will build residential housing (for sale to customers) on the land (the land is inventory to the partnership). Paul will recognize:
a. $0 gain or loss.

b. $60,000 capital gain.

c. $60,000 ordinary income.

d. $36,000 ordinary income.

e. $36,000 capital gain.
Business
1 answer:
Charra [1.4K]3 years ago
4 0

Answer: B. $60,000 capital gain

Explanation: The land being sold at the rate of $160,000 having a book value of $100,000 will make Paul the owner realise a gain on the sale of the asset of $60,000 (capital Gain)

The gain on the land is a capital gain to Paul as he held the land for investment purpose before selling the land to the partnership business he has a 60% capital interest in.

To Paul, the gain is a Capital gain to him as he owns the asset wholly before selling it to the partnership business which is a real estate business .

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Nick lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on jello and pie. A bowl of jello is pr
OlgaM077 [116]

Answer:

Yes.

Explanation:

Market rate of exchange of jello for pie:

= Price of a piece of apple pie ÷ Price of jello

= $3.75 ÷ $1.25

= 3.00

At his current consumption point, Nick's marginal rate of substitution (MRS) of jello for pie = 3

Since MRS = Px/Py, hence, at this point of consumption bundle he is having a maximum level of utility.

Therefore, there is no need to change his consumption bundle because he is already at his maximum level.

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4 years ago
Upon starting her new position, Brenda is given a _______ that details the tasks, duties, and responsibilities considered a part
Arada [10]

Answer:

The answer is job description (JD).

Explanation:

The job description is the summary of tasks, duties, and responsibilities for a particular position. The job description also includes the requirements for the position holder. In some cases, it may details the reporting line, compensation and benefits regarding to the job.

3 0
3 years ago
Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace earns interest under these arra
sladkih [1.3K]

Answer:

$143,750

Explanation:

We have to first calculate the present value of the bargain purchase option:

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3 0
3 years ago
If the mortgage loan is 80% of the appraised value of a house, and the interest rate of 8% amounts to $460 interest for the firs
irga5000 [103]

The appraised value of the house is after calculating interest and the value is $86,250.

<h3>What is appraised value?</h3>

A qualified appraiser or valuer's assessment of the assessed value of the real property is what is meant by an appraised value or mortgage valuation. It is typically utilized as a pre-qualification criterion and risk-based pricing component in connection with a financial institution's issuance of mortgage loans.

Calculation of appraised value of the house:

  1. First, calculate the yearly interest. $5,520 in interest total every year ($460 x 12).
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  3. Next, subtract $86,250 from $69,000 to get the appraised value.

Hence, the total appraisal value is $86,250.

Learn more about appraised value :

brainly.com/question/21507493

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6 0
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