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andrezito [222]
2 years ago
6

In 2018, Grant’s personal residence was completely destroyed by fire. Grant was insured for 100% of his actual loss, and he rece

ived the insurance settlement. Grant had adjusted gross income, before considering the casualty item, of $30,000. Pertinent data with respect to the residence follows: Cost basis $280,000Value before casualty 250,000Value after casualty What is Grant's allowable casualty loss deduction? (A) $10,000(B) $6,900(C) $80,000(D) $6,500(E) $0
Business
1 answer:
gizmo_the_mogwai [7]2 years ago
5 0

Answer:

(E) $0

Explanation:

The answer is $0  

because you can only deduct losses not reimbursed or reimbursable by insurance or other means. The losses from casualty item are not deductible.

So, the correct answer is  (E) $0

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Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9
murzikaleks [220]

Answer:

d. 5.08%

Explanation:

We have to first calculate the YTM of the bond, and then apply the tax shield.

To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.

C \times \frac{1-(1+r)^{-time} }{rate} +Face\:Value/(1+rate)^{time}= PV\\

46.25 \times \frac{1-(1+IRR/2)^{-20*2} }{rate} + 1000/(1+IRR)^{20}= 1075\\

IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)

then we apply the shield tax to the IRR:

IRR x (1 - tax-rate) = Cost of debt

0.084656891 * ( 1 - 0.4) = 5.0794= 5.08

3 0
3 years ago
You are comparing three investments, all of which pay $100 a month and have an interest rate of 8 percent. One is ordinary annui
Ivan

Answer:

c. The present value of the perpetuity has to be higher than the present value of either the ordinary annuity or the annuity due

Explanation:

Considering the following statements:

  • the ordinary perpetuity, the payments must occur on the first day of each monthly period. Hence this statement is incorrect.
  • The ordinary annuity would be more valuable than the annuity due if both had a life of 10 years. Incorrect.
  • In case of perpetuity the times is not limited, hence would get the higher return.
6 0
3 years ago
Communication response time must be faster than in the past to succeed in modern workplace t or f?
goblinko [34]

Answer:

T.

Communication response time must be faster than in the past to succeed in the modern workplace. TRUE.

8 0
3 years ago
Read 2 more answers
You work for an auto manufacturer designing brake systems, but you do not have a dedicat- ed team. Instead, you move from projec
koban [17]

Answer:

C: Self-directed work groups and virtual teams.

Explanation:

SDWT (Self-directed work groups and virtual teams) are the groups in offices who possess different skills, and even aren't working on the same project which that they don't have same purpose as you have but still they are in your team.

<em>Since</em>, there is not any dedicated team for my project, I am just moving into other teams for every new project I am going int o self-directed work groups and virtual teams.

4 0
3 years ago
XYZ Company received $18,000 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nom
djverab [1.8K]

Answer:

Dr Rent revenue

Cr Unearned rent revenue, $4,500

Explanation:

Preparation of XYZ Company Journal entry

Since we were told that the Company received the amount of $18,000 on April 1, 2020 for a one year's rent paid in advance in which the transaction has a credit to a nominal account, this means we have to record the transaction by Debiting Rent revenue with 4,500 and Crediting Unearned rent revenue, with the same amount of $4,500 calculated as

(3/12 x $18,000 ).

Dr Rent revenue

Cr Unearned rent revenue, $4,500

(3/12 x $18,000 )

7 0
3 years ago
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