1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zysi [14]
3 years ago
15

Shontelle owns an apartment house that has an adjusted basis of $760,000 but is subject to a mortgage of $192,000. She transfers

the apartment house to Dave and receives from him $120,000 in cash and an office building with a fair market value of $780,000 at the time of the exchange. Dave assumes the $192,000 mortgage on the apartment house.
a. What is Shontelle’s realized gain or loss?
b. What her recognized gain or loss?
c. what is the basis of the newly acquired office building?
Business
1 answer:
Alex787 [66]3 years ago
8 0

Answer:

(a) $332,000

(b) $312,000

(c) $760,000

Explanation:

(a) Her realized gain or loss

Mathematically, Realized gain or loss = Amount realized - Adjusted Basis = (120000 + 780000 + 192000) - 760000.

= 1092000 - 760000

= $ 332000

(b) Her Recognized gain.

Mathematically, her recognized gain = Amount received in cash + Amount received in Mortgage = 120,000 + 192,000 = $312,000

(c) Basis of newly acquired office Building.

Mathematically:

Basis of newly acquired building = Fair market value of building - (realized gain - recognized gain) = (780,000)-(332,000-312,000) = 780,000-20,000 = $760,000

You might be interested in
Over the course of 40 years, sal grew his company to six package shipping stores. with his retirement approaching and the increa
Stella [2.4K]
Based on the given scenario above, what Sal's reduction of effort represents DEFENSIVE STRATEGY. Defensive strategies are techniques that are utilized in order to combat an attack for possible competitors. In Sal's situation, since she is approaching retirement, her back up plan to decrease the possibility of having problems in the business is to reduce the number of locations.
8 0
3 years ago
A company assigns overhead using a plantwide rate. If total estimated manufacturing overhead is $900,000 and the total estimated
ozzi

Answer:

Overhead  application rate

= <u>Budgeted overhead</u>

  Budgeted machine hours

= <u>$900,000</u>

  30,000 hours

= $30 per machine hour

Overhead cost assigned to the product

= Overhead application rate x Actual machine hours  

= $30 x 12,000 hours

= $360,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

Explanation:

In this case, there is need to determine the overhead application rate, which is the ratio of budgeted overhead to budgeted machine hours.

Then, we will obtain the overhead cost assigned to the product by multiplying the overhead application rate by actual machine hours.

3 0
3 years ago
How can a firm increase the life of a product without involving product changes? a. reintroduction b. product extension c. new p
Vitek1552 [10]

When a firm is experiencing lesser profit it can come up with different strategy to improve its present product rather than developing new product because improving present product involves lesser cost therefore more profit. The answer is B. Product Extension and C. New product placement.

Reintroduction is one way, it is launching the product using more creative sales and marketing strategy. It can target a new market segment, provide more information about the product and use more appealing advertisements. The product’s packaging can also be changed to make it look more attractive and fresh.

Product extension can be use as it is targeting a new market. It can involve exporting the products. This strategy may be costly but when successful will level up your product’s quality as it passed exporting quality. It is changing the market NOT the product.

New product Placement is a strategy where in the products are advertised by placing it in media. The products are shown for example in movies, the character uses the products that way it can give awareness to the viewers how the products can be used and also the brand and name of the products are advertised without direct reference to the product. It doesn’t involve changing the product’s feature only the product placement is changed to a new one.

<span>Rebranding can also be used. It is introducing your product with a new name, changing the product’s name not only its packaging but the total appearance. It gives the product a whole new image to target new image audience or expand its audience.</span>

3 0
3 years ago
Nations will attract investment and its citizens will engage in productive activities when the institutions and policies of that
Varvara68 [4.7K]

Answer:

Explanation:

All of the above.

Companies will be attracted to nations that encourage market exchange and not restrict it, reward innovation, and protect people and property,

4 0
3 years ago
Silvana Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintain
Goshia [24]

Answer:

The dividend payout ratio is 43.33% as shown below

Explanation:

EBIT is an acronym for earnings before interest and tax, it is given as $2 million.In other words, to arrive at net income we need to deduct interest on loan and tax.

EBIT                                                 $2000000

less interest(5000000*10%)         ($500000)

Earnings before tax                       $1500000

Tax @40%                                        ($600000)

Net income                                      $900000

Since capital project requires 60% of equity(net income belongs to equity holders),hence we need to deduct 60% of capital outlay from net income to arrive at distributable earnings.

distributable earnings =$900000-(60%*$850000)

                                     =$390000

Hence dividend payout ratio=distributable earnings/net income

                                               =$390000/$900000

                                                =43.33%

8 0
3 years ago
Other questions:
  • ACME Corp. is striving to foster a set of ethical values, beliefs, goals, norms, and rituals that members of an organization sha
    5·1 answer
  • Atlantic Corporation reported the following amounts at the end of the first year of operations: contributed capital $100,000; sa
    13·1 answer
  • Factory overhead includes:_________.a. direct materials unansweredb. direct laborun answeredc. indirect labor unansweredd. depre
    12·1 answer
  • What do analysts and briefers use to alert policymakers to the level of confidence they have in their judgments, based on the av
    7·1 answer
  • A company believes that its product will exhibit network effects if enough consumers begin to use it. How might this company dec
    15·1 answer
  • Traditional buyer-supplier relationships revolve around financial considerations. buyers and suppliers both try to get the best
    9·1 answer
  • A client's physical count of inventories was higher than the inventory quantities per the perpetual records. This situation coul
    14·1 answer
  • In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. T
    7·1 answer
  • Supermodel Linda Evangelista has been quoted as saying. "l] don't wake up for less than $20,000 a day." If Ms. Evangelista is pa
    5·1 answer
  • A firm purchases goods on credit worth $90. The same firm pays off $100 in old credit purchases.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!