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.
Answer:
The bond will sell for the amount of $869.17
Explanation:
According to the given data coupon amount = 50/2 = 25
Therefore, in order to calculate the selling price of the bond we would have to make the following calculation:
selling price of the bond = 25 * PVIFA(3%,52) + 1,000 * PVIF(3%,52)
selling price of the bond= 25 * 26.1662 + 1,000 * 0.2150
selling price of the bond= $869.17
The bond will sell for the amount of $869.17
Answer:
$5,456
Explanation:
A relevant cost can be defined as the cost that are said to be in form of a future cash cost that is relevant and important to a particular decision.
The relevant cost:
Current market cost 880 liters × Current market $6.20 per liter
= $5,456.
Therefore the relevant cost of the 880 liters of the raw material when deciding how much to bid on the special order will be $5,456
Answer and Explanation:
Perfect competition is a competitive market where there is a very wide number of buyers and sellers who offer the same or similar goods with great product and service information. Furthermore, this sector has free entry and exit
So it is a perfectly competitive market, also it cannot influence the market price also there are price takers
Also the given statement is false as it represents the monopoly market not the perfect competition market
The company plays $33,500 to tear down the old buildingand $47,000 to landscapethe lot. It also pays a total of $1,540,000 in construction costs-this amount consists of $1,452,200 for the new building and $87,800 for lighting andpaving a parking areanext to the building. Prepare a single journal entry to record thesecosts incurred by Cala, all of which are paid in cash.Cost of LandPurchase price for land$280,000Purchase price for old building$110,000Demolition costs for an old building $33,500Fill and level the land$47,000Total cost of land$470,500Cost of New building and land improvementsCost of new building$1,452,200Cost of land improvements<span>$87,800</span>
