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rjkz [21]
3 years ago
15

Ratliff Development Corporation purchases a tract of land in 2018 at a cost of $120,000 and subdivides the land into 30 building

lots. The cost of subdividing is $6,000. In 2018, Ratliff installs roads and utilities at a cost of $36,000 and pays property taxes totaling $2,000 in 2018 and 2019. Interest paid on the loan used to purchase the land is $10,000 in 2018 and $6,000 in 2019. In 2019, Ratliff sells 10 lots for a total of $350,000. What is the corporation’s gain or loss on the sale of the lots?
Business
1 answer:
puteri [66]3 years ago
5 0

Answer:

$ 290,000

Explanation:

$ 120,000 Land cost

<u>Expenses</u>  

$   6,000 Subdividing

$ 36,000 Roads and Utilities

$ <u>  2,000</u> Taxes

$ 44,000 Total

<u>Interest</u>  

$ 10,000 2018

$ <u>6,000</u> 2019

$ 16.000 Total

<u>Cost of Each Lot</u>  

$ 120,000 Land cost

$  44,000 Total Expenses

$  <u> 16,000</u> Interest  *

$ 180,000 Total Cost

$     6,000      Each   ( $ 180,000 / 30 units ) *

<u>Quantity  sold:  30 </u>

$ 6,000 Cost per unit

<u>Sales</u>  

10 x $ 35,000    =   $ 350,000  

 

<u>Income Statement</u>  

Sales $ 350,000

Cost $<u>   (60,000) </u>  ( = $ 6,000 x 10 units ) *

Gain $ 290,000     *

<em>* Includes financing costs</em>

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Jeanie acquires an apartment building in 2008 for $280,000 and sells it for $480,000 in 2019. At the time of sale there is $60,0
Evgen [1.6K]

Answer:

$60,000

Explanation:

According to section 1250 of the Internal Revenue Service, the depreciation previously allowed as a deduction would now be taxed in the case of ordinary income at the highest tax level.

And,  For this, the asset should be depreciated real property.

In the question, there is depreciation charged for apartment building so the same is eligible

The eligibility is allowed up to $60,000 and the same is to be considered

8 0
3 years ago
Mary-Jo owns a theater. She purchased a new computer to run the accounting software and lighting for the theater. The computer c
Ratling [72]

Answer:

The depreciation for 2020 is $233.33

Explanation:

Under the MACRS, computer useful life is 5 years.

The depreciation rate for every year, applying double declining method is: 100% / 5 = 20%. So, depreciation expenses for first year of the computer is calculated as: Cost of the computer x 20% = = 2,000 x 20% = $400.

As the computer is purchased in May, the year 2020 would only account for 7 month out of the first year of depreciation. Thus 2020 depreciation expenses = First year depreciation x 7/12 = 400 x 7/12 = $233.33

8 0
2 years ago
The Sugar Sweet Company will choose from two companies to transport its sugar to market. The first company charges
Harlamova29_29 [7]

Answer:

Both will charge $6,904 when they transport 16 tons of sugar.

Explanation:

The amount of sugar to be transported is S, since we need to calculate at which amount of sugar both truck companies charge the same total price, we need to solve the following:

first company charges $4,500 + $150.25 S

second company charges $3,696 + $200.50 S

since both companies will charge the same total amount, then

$4,500 + $150.25 S = $3,696 + $200.50 S

$4,500 - $3,696 = $200.50 S - $150.25 S

$804 = $50.25 S

$804 / $50.25 = S

S = 16

$4,500 + ($150.25 x 16) = $4,500 + $2,404 = $6,904

5 0
2 years ago
____________ involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy th
serg [7]

Answer:

Business analysis

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks, etc.

Business analysis refers to a strategic process that typically involves a review of the sales, costs, and profit projections for a new product in order to find out whether the product is in tandem with the objectives of the company.

This ultimately implies that, many organizations and business owners use business analysis to measure the level of satisfaction with respect to the company's objectives and its customers through the process of analyzing or reviewing the sales, costs and profits projection of its new products before pushing them out into the market.

Similarly, cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

5 0
3 years ago
A general partner who puts together the administrative organization of the limited partnership and handles the registration of t
Valentin [98]

Limited partner.

<h3>What is a Limited partner?</h3>
  • A limited partner is a shareholder whose liability for the company's debts is limited to the amount they contributed to the business.
  • Silent partners are another name for limited partners.
<h3>What is Limited Partnership?</h3>
  • Similar to a general partnership, a limited partnership (LP) must have at least one general partner (GP) and at least one limited partner, as opposed to the minimum requirement of two GPs for general partnerships.
  • Different from limited liability partnerships, which only have limited liability for each participant, are limited partnerships.
  • The GPs are, in most significant ways, in the same legal position as partners in a traditional firm: they have management control, share the right to use partnership property, divide the firm's profits into fixed shares, and have joint and several liabilities for the partnership's obligations.

Therefore, the answer is a limited partner.

Know more about a Limited partner here:

brainly.com/question/25012970

#SPJ4

5 0
2 years ago
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