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agasfer [191]
3 years ago
15

Sally and Joe owned a home on Lake Michigan and they also own a house in Florida. They had not lived in the house on Lake Michig

an for the last five years, since it was too cold, and they retired to Florida. They want to sell the property in Michigan, and not pay capital gains taxes on up to $500,000 profit on the sale. Their accountant tells them they cannot take this deduction. What is the problem with the deduction?
Business
1 answer:
8090 [49]3 years ago
4 0

Sally and Joe did not live in the home for the required two of the last five years to qualify for the deduction.

Explanation:

In fact, you must satisfy both the possession requirement and the use test in order to qualify for the waiver from Section 121. Unless you owned and then used your house as your primary place of residence is minimum period two years from the five years preceding the date of sale, you are liable for exclusion. During different 2 years, you can fulfil your ownership and use tests. However, during most of the 5-year period that ends on the date of purchase, you must fulfil both tests.

You do not have to declare your rental income to the IRS if you visit to work in the house for 14 days or less in the year. There is something to that for visitors who might reap the benefits of short-term activities such as major sports, concerts and natural occurrences in their city.

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Billy's Goat Coats has a preferred share issue outstanding with a current price of $38.89. The firm last paid a dividend on the
blondinia [14]

Answer:

option (c) 9%

Explanation:

Data provided in the question:

current price of outstanding shares = $38.89

Last Dividend paid = $3.50

Marginal tax rate = 34%

Now,

cost of preferred equity = Dividend ÷ Price per share

thus,

cost of preferred equity = $3.50 ÷ $38.89

or

cost of preferred equity = 0.0899

or

cost of preferred equity = 0.0899 × 100%

= 8.99% ≈ 9%

Hence,

The correct answer is option (c) 9%

5 0
3 years ago
Harold, a financial accountant at an automobile company, is asked to calculate the net income of the company for a given period.
dsp73

Answer:

The correct answer is Administrative expenses.

Explanation:

Administrative expenses refer to the expenses assumed by the company to be able to operate normally, where production costs are not included if it is a production company. Among these expenses are wages, aid, bonuses, pensions, etc. Its payment is obligatory therefore daily work is carried out that requires the support of the personnel.

4 0
3 years ago
Jared, a supervisor, is discussing an employee with Evan, a human resource manager. Jared explains that the employee’s performan
ryzh [129]

Answer:

Explanation:

Based on the scenario being described within the question it can be said that Evan should advise Jared to withhold the employee's raise, and if the employee does not respond, then her employment should be immediately terminated. This is because the employee is being paid to do certain tasks which she is capable of doing. Neglecting this responsibility must be met with an immediate termination of the employment.

4 0
3 years ago
Read 2 more answers
The marginal cost column reflects:_______.
docker41 [41]

Answer:

iii. The law of diminishing marginal utility

6 0
1 year ago
______ effect happens when the place a product was manufactured influences how consumers perceive the product.
Assoli18 [71]

The country of origin effect happens when the place a product was manufactured influences how consumers perceive the product.

<h3>What is a country of origin effect?</h3>
  • COO stands for Country of Origin.
  • The practice of marketers and consumers identifying brands with countries and basing purchasing decisions on the country of origin of the product is referred to as effect.
  • The country of origin effect occurs when the location of a product changes how consumers perceive the product.
  • Consumers assume product features based on country stereotypes and previous encounters with products from that country.
  • As a result, a COO cue has become an essential information cue for customers who are more exposed than ever before to internationalized product selection and multinational marketing.

Therefore, the country of origin effect happens when the place a product was manufactured influences how consumers perceive the product.

Know more about the country of origin effect here:

brainly.com/question/20716099

#SPJ4

8 0
2 years ago
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