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Salsk061 [2.6K]
3 years ago
15

Marvin received Form 1099-C reporting canceled credit debt of $7,000. His total liabilities immediately before the cancellation

were $43,000. The FMV of assets immediately before the cancellation were $38,000. What amount of canceled debt will Marvin report on his return?

Business
2 answers:
serg [7]3 years ago
6 0

Answer:

$2000 of canceled debt that Marvin must report on his return

Explanation:

Please see attachment

MariettaO [177]3 years ago
3 0

Answer:

$2.000

Explanation:

First we calculate the debt incurred as the result of the cancellation by deducting liabilities with asset value as follows:

43,000 - 38,000 = $5,000

Under the insolvency exception rule Marvin can exclude the $5,000 cancelled debt from income.

7,000 - 5,000 = $2,000

Hence, Marvin must report the addition of $2,000 aside from his income on his returns.

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Eduardwww [97]

Answer:

Answer D.

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Job specialization is needed when we want to be sure that specific job is performed by the person who have desired skills. In large organization its needed to structure teams, to assign tasks to people with right skills, to deliver work in efficient way.

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3 years ago
Two carpenters at a cabinet company are interested in receiving a raise in salary. Matt has worked for many years at the company
son4ous [18]

Answer:

C.

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Jason will get the raise because even though he is new he works hard like he's been there for years. Matt will not get it because even though he has worked there for a while he doesn't do his job good.

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5 0
2 years ago
Read 2 more answers
Ives Corp. has an inventory period of 22.4 days, an accounts payable period of 36.5 days, and an accounts receivable period of 3
leva [86]

Answer:

The Company's cash cycle is 17.3 days

Explanation:

The cash cycle is computed by the following formula:

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In the above question, Ives Corp is making an efficient operation of its cash resources. The payables are more than inventory, so the payables are financing the inventory as well as partly the receivables.  

4 0
3 years ago
You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $25,000 annually. You own a home
saveliy_v [14]

Answer:

$88,150

Explanation:

DINK method for insurance sums one half of all the debt plus funeral expenses. Thus,

Using DINK method

One half of mortgage, 140,000 = 70000

One half of car loan, 14000 = 7000

One half of personal debts, 4800 = 2400

One half of credit card loans, 3500 = 1750

Funeral expenses = 7000

Thus

Total insurance needed =

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= $88,150

Note that, when using DINK method, what the spouse earn isn't used in calculating total insurance.

7 0
4 years ago
Weighted average cost of capital American​ Exploration, Inc., a natural gas​ producer, is trying to decide whether to revise its
saw5 [17]

Answer:

American​ Explorations current​ WACC is 9%

Explanation:

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WACC shows a relationship between debt, equity and the preferred stock.

3 0
3 years ago
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