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nasty-shy [4]
3 years ago
12

Mike and Diane Carter file jointly and have taxable income of $150,000 prior to considering capital gains. This year, they had t

he following property transactions:On April 1, sold, for $50,000, investment land which was inherited from their grandfather, was valued at $48,600 at his death during 2008, and was purchased in 2005 for $45,000.Sold 1,000 shares of stock at $15 each on May 16; the shares were purchased on April 24, 2018, at $12 each.Sold 300 shares of stock at $8 each on June 22; the shares were part of a 1,000 share lot purchased on January 11ththis year, at $10 each.Bought 500 shares of stock on August 31, 2001, for $12 each, which on December 31st this year, are worth $18 each. Ignoring commissions what is the tax consequence of the above transactions to the Carters?Group of answer choicesA. $1,178 increase in liability.B. $1,480 increase in liability.C. $570 increase in liability.D. $760 increase in liability.
Business
1 answer:
Veronika [31]3 years ago
6 0

Answer:

C. $570 increase in liability

Explanation:

     Particulars                       Amount

Land                                        $1,400          [50000-48600]

Long term capital gain         +$3,000          [1000 * (15-12)]

Short term capital loss          <u>-$600 </u>            [300 * (8-10)]

Total Capital Gains                $3,800

Tax Rate                                   <u>15%</u>

Increase in liability                 <u>$570</u>              [$3,800 * 15%]

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At the start of this year, 18 months’ rent was paid. At the year’s end, how will this affect the balance sheet?
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4 years ago
Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a
Talja [164]

Answer:

$40

Explanation:

Target cost is the cost per unit arrived at after having deducted the required profit margin from the competitive market price.

It is a management technique that makes management think about ways to achieve a set target cost rather than forcing their actual cost plus profit margin on customers.

In this case, the competitive market price is $54 per unit of hard drive whereas the company expects to achieve a total profit of $14  per unit  

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7 0
3 years ago
Describe the characteristics of sole proprietorships, partnerships, limited partnerships, and joint ventures
raketka [301]

Answer:

The characteristics of each business types are given below:      

Explanation:

<u>Sole Proprietorship</u> is the type of business in which the liability is limitless. Due to this issue, the owner is solely responsible to pay off the debts of company from his personal owned assets if the business goes bankrupt.

<u>Partnership</u> is just like sole proprietorship but here the partners are the only responsible persons to payoff the debt of the company because the liability is limitless. The burden of the company debts is equally shared among the partners.

<u>Limited Partnership</u> is less risky because the liability is limited and only the amount invested in the business is subjected to the payment of borrowings from the lenders. The limited partner is responsible for his actions which means if his misdeed resulted in fine then it would be paid from his share first and then the other partners are equally liable for compensation if their is still any amount left. The resources of all the partners help to grow the business and the best resource here is the partner's knowledge in the core operation of the business.

In the case of <u>Joint Venture</u>, two or more than two limited liability companies jointly invest in a single project by pooling their resources in it to gain maximum benefit out of the business. So as the limited liability companies are the partners in the joint venture, the liability is limited and the burden of the payment of the liability falls on the company partners. So the investor is not subjected to pay the debts of the company because the limited liability company is a separate entity and is solely liable to pay for its debts.

4 0
3 years ago
In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Italian adult non- institutionalized p
STatiana [176]

Answer:

b. 48.4% and 7.9%

Explanation:

Given:  Italian adult non- institutionalized population was 51.070 million.

             The labor force was 24.710 million.

             The number of people employed was 22.765 million.

Now, finding the Italian labor-force participation rate.

Labor-force participation rate= \frac{Labor\ force}{Total\ population}

⇒ Labor-force participation rate= \frac{24.710}{51.070}\times 100

∴ Labor-force participation rate= 48.38\% \approx 48.4\%

Next finding unemployment rate.

Unemployment rate= \frac{Total\ population- (Labor\ force+ people\ employed)}{Total\ population}

⇒ Unemployment rate= \frac{51.070- (24.710+22.765)}{51.070}

⇒ Unemployment rate= \frac{51.070- (47.475)}{51.070}

Opening parenthesis.

⇒ Unemployment rate= \frac{3.595}{51.0170} \times 100

∴ Unemployment rate= 7.039\%

Closest option available is 7.9\%

Hence, labor force participation rate is 48.4% and unemployment rate is 7.9%

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