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lutik1710 [3]
3 years ago
15

On August 31, 2018, Harvey and Margaret, who file a joint return and live in Charleston, South Carolina, sell their personal res

idence, which they have owned and lived in for 10 years. The realized gain of $292,000 was excluded under § 121. They purchased another personal residence in Charleston for $480,000 on September 1, 2018. However, in 2019, Harvey's employer transfers him to Houston, Texas. They sell their Charleston home on February 28, 2019, and purchase a new home in Houston. The realized gain on the second sale is $180,000. Harvey and Margaret's recognized gain on the second sale is $_________
Business
2 answers:
SVEN [57.7K]3 years ago
8 0

Answer:

$55,000

Explanation:

Since Harvey and Margaret are married, their § 121 exclusion = $500,000 since they meet all the ownership requirements. The gain resulting from the sale of their Charleston home was fully excluded ($292,000).

Since the sale of the second home is within the two year window period, then the recognized gain will be:

realized gain ($180,000) - § 121 exclusion ($500,000 x 6/24 months = $125,000) = $55,000

Nana76 [90]3 years ago
5 0

Answer:

55,000

Explanation:

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Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. What is the present value of its growth oppo
Gnesinka [82]

Answer: $0.25

Explanation:

Fron the question, we are informed that Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. We are further told that the required return is 12%.

The present value of its growth opportunities (PVGO) will be:

= $50 - ($5.97/12%)

= $50 - ($5.97/0.12)

= $50 - $49.75

= $0.25

Therefore, the present value of its growth opportunities (PVGO) if the required return is 12% is $0.25.

6 0
3 years ago
It seems hard to justify spending $4.00 for a compact fluorescent lightbulb when an ordinary incandescent lightbulb costs 50 ¢.
frosja888 [35]

Answer:

to obtain 10,000 hours of light you would need:

option 1)

10 incandescent light bulbs costing $0.50 each = $5

this incandescent light bulbs will consume 60 x 10,000 = 60,000 watts or 60 kWh = 60 x $0.10 = $6 in electricity

total costs using incandescent light bulbs = $5 + $6 = $11

option 2)

1 fluorescent light bulb = $4

this fluorescent light bulb will consume 15 x 10,000 = 15,000 watts or 15 kWh = 15 x $0.10 = $1.50

total costs using fluorescent light bulbs = $4 + $1.50 = $5.50

8 0
3 years ago
a. Ten years ago today, Excel Corp issued a regular coupon bond that had original maturity of 15 years. The bond pays interest s
Vlad [161]

Answer:

Total $1,271.0564

Explanation:

We have bond of 10 years ago, so the bond is left with 5 years of life

<u>we need to calculate the present value ofthe cuopon payment:</u>

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 50 (1,000 x 5%)

time 10 (5 years 2 payment a year)

rate 0.02 (4% annual divide by 2 to get semiannually)

50 \times \frac{1-(1+0.02)^{-10} }{0.02} = PV\\

PV $449.1293

<u>and the present value of the principal</u>

\frac{Maturity}{(1 + rate)^{time} } = PV

Maturity 1000

time 5

rate 0.04

\frac{1000}{(1 + 0.04)^{5} } = PV

PV  $821.9271

<u>We add both to get the present value ofthe bond</u>

PV c $449.1293

PV m  $821.9271

Total $1,271.0564

6 0
3 years ago
Which of the following is an example that critics of absorption costing may use to show that its use may generate unwanted manag
dlinn [17]

Answer:

D. All of the above.

Explanation:

Absorption costing is the method in which cost is charged on the basis of the actual expenses and facilities absorbed ion the production.

This basically charges usually more cost, in comparison to activity based costing.

In this manner since cost charged is more, the profit for the company is reduced. Accordingly the managers then prefer to produce as much as they can.

The main focus of management is for production.

Even in case this requires maintenance they put the resources into production rather than maintenance.

Thus, all of the statements are true.

8 0
3 years ago
Which of the following statements about pricing is true? Small changes in price can have big effects on company profit but not o
Nikitich [7]

Answer:

<em>Small changes in price can have big effects on the number of units sold and also on company profit</em>

<em></em>

Explanation:

Small change in price will definitely have an effect on the amount of units sold due to a corresponding change in demand that will follow this change, and also will affect the amount of profit that the company generates. <em>This changes can either be positive or negative to the company</em>. Example is the increase in price of coca-cola might trigger customers into switching to pepsi-cola, resulting in a reduced demanded quantity which means less units are produced. The overall effect of these will leave the company with less profit.

3 0
3 years ago
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