Answer:
That is $2,000 loss
Explanation:
After the hurricane Oscar received $140,000 for his loss, the adjusted basis for his property was $130,000 so he had a gain of 140,000- 130,000=$10,000.
According to Sec. 1033(a)(2) since the new property that was built (the replacement) was similar we will recognise the amount received from the insurance company ($140,000) to the extent that it pays for the replacement property.
That is
Gain or loss = amount paid by insurance company- cost of replacement property
Gain or loss= 140,000- 142,000
Gain or loss= -$2,000
That is $2,000 loss
The three most frequent misconceptions are that net income equals cash, net income excludes estimates, and net income reports all changes in value that occurred during the accounting period.
One of the three crucial financial statements used to describe a company's financial performance throughout a certain accounting period is the income statement. The balance sheet and the cash flow statement are the other two important statements. The income statement, which is often referred to as the profit and loss (P&L) statement or the statement of revenue and expense, primarily focuses on the company's revenue and expenses over a specific time period. Understanding how to study an income statement is the greatest approach to evaluate a business and choose whether or not to invest.
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No, companies need to hire people who have experience.
The total cost of the lone will be lower
The statement that are NOT costs that are relevant to the "total cost to own" of a car is: f. None of the above.
<h3>What is total cost?</h3>
Total cost is the cost generated or cost incurred for producing a product or the expenses incurred for owing a product such as car.
Total cost formula is:
Total cost=Fixed cost+ Variables cost
If a person own a car it is important to know that all the following are the total cost that will be relevant to the cost of owing a car are:
Inconclusion the statement that are NOT costs that are relevant to the "total cost to own" of a car is: f. None of the above.
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