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Gnoma [55]
3 years ago
15

Darin has a tax basis of $7,000 and an at-risk amount of $5,000 in a partnership where he is a 25% owner. The partnership incurr

ed a loss of $40,000 in the current year. How much of the loss will be allocated to Darin and how much will he be able to deduct in the current year assuming he materially participates in the business
Business
1 answer:
GarryVolchara [31]3 years ago
7 0

Answer:

Darin will have a $10000 and also he will be able to deduct $5,000.

Explanation:

Solution

Recall that:

Darin tax basis =$7000

Risk amount = $5000

Loss incurred = 40,000 (current year)

Ownership =25%

Now

With regards to his share the loss will be 25% of $40000, that is $10000 and he will be able to deduct only $5000 because of his at-risk amount is this and as per Sec. 465.

Or

40000 * 25% = $10000

He will deduct $5000 from $10000 only

Hence $10,000 of the loss will flow-through to Darin, and he will be able to deduct $5,000.

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In an enterprise-class database system, business users interact directly with the DBMS, which directly accesses the database dat
nikklg [1K]

Answer:

False

Explanation:

In an enterprise-class database system, business users can not interact directly with the DBMS, which directly accesses the database data

7 0
3 years ago
A machine costing $251,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer usefu
e-lub [12.9K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A machine costing $251,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The estimated salvage value is $3,400.

A) Straight-line:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (251,800 - 3,400)/3= $82,800

B) Double declining balance:

Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]

Year 1= (248,400/3)*2= 165,600

Year 2= 55,200

Year 3= 18,400

5 0
3 years ago
You plan to retire in 30 years and you are investing $250 per month in the BMO Large-Cap Growth mutual fund. The fund has an ave
mr Goodwill [35]

Accumulated Balance is given by :

A=P\dfrac{(1+i)^n-1}{i}\times (1+i)

Here,

n = time period = 30×12 = 360.

i=\dfrac{13.45}{100}\times \dfrac{1}{12}=0.0112

P = principal price = $250.

Putting all given values in above equation, we get :

A=250\times \dfrac{(1+0.0112)^{360}-1}{0.0112}\times (1+0.0112)\\\\A=\$1221659.48

Hence, this is the required solution.

6 0
3 years ago
Pat shopped at Target for new summer shorts. After trying on three different brands and price comparing, he decided to buy the D
Vitek1552 [10]

Answer:

Shopping and convenience

Explanation:

Pat shopped at Target for new summer shorts. After trying on three different brands and price comparing, he decided to buy the Dockers shorts. While heading to the checkout stand, he spotted earphones hanging on the endcap of the electronics area. Remembering he needed new earbuds for his iPod, he grabbed a set and paid for it all at the checkout counter. What types of product categories did Pat experience in this shopping trip

Pat experience shopping and convenience product categories; the dockers shorts is the shopping product while the ear phone is the convenience product.

Shopping products are types of products categories in which a consumer takes his or her time to deliberate, research, compared on a product before they decided to buy the said product while convenience product is one that required no deliberation, the are usually routine products.

5 0
3 years ago
b. D Corp stock currently trades at $50. August call options on the stock with a strike price of $55 are priced at $5.75. Octobe
coldgirl [10]

Answer:

The value of the time premium between the August and October options is $0.50

Explanation:

A time premium or time value is the amount by which the price of a stock option exceeds its intrinsic value.

To calculate the time premium between August and October we will Subtract October extrinsic value - August extrinsic value

Time premium = 6.25 - 5.75 = $0.50

3 0
3 years ago
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