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
Bad White [126]
4 years ago
10

Jack and Diane decided to remodel their kitchen. They removed their old cabinets and replaced them with newer, nicer cabinets. T

hey installed the old cabinets in a rental home that they own and lease to other people. The original cost of the old cabinets was $6,000. The fair market value on the date they were installed in the rental house was $2,500. The cost of the new cabinets was $11,000. What amount should Jack and Diane use as the basis for depreciation for the cabinets that have been installed in the rental property?
Business
1 answer:
Hitman42 [59]4 years ago
4 0

Answer:

The answer is: $2,500

Explanation:

According to the IRS, the cost basis for any asset should be the original cost adjusted by its depreciation.

Since Jack and Diane aren't able to determine the depreciation expenses for the cabinets, they should use their fair market value as cost basis.

You might be interested in
A pension plan helps pay for ______.
GrogVix [38]
C retirement benefits.  This is why retirees are sometimes called "pensioners"
4 0
4 years ago
Read 2 more answers
Because private owners are held responsible for damages their property causes to the property of others, private owners have
Nikitich [7]
I would say the answer is A
4 0
3 years ago
Read 2 more answers
Suppose the cost of capital of the Gadget Company is 10 percent. If Gadget has a capital structure that is 50 percent debt and 5
myrzilka [38]

Cost of equity capital is closest to: 16 percent

Solution:

WACC is covered on page 120 Corporate Finance, under Capital Structure.

Using the standard equation for WACC = %wt Equity x cost of equity (re) + %wt Debt x cost of debt (rd).

Since there is a 20% tax rate for the firm, the cost of borrowing is reduced by that amount. So the cost of debt is 4%, not 5%.

Plug the formula: 10% = 50% x re + 50% x 4%

The formula ( i.e. 0.1+(0.1-0.05)(1)(1-0.2)) in CFAI reading is questionable.

The calculation is 0.1+(0.1-0.05*(1-0.2))*(1)=16%

7 0
3 years ago
Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sale
Evgen [1.6K]

Answer:

A. $816,000

Explanation:

The formula to compute the net sales is shown below:

= Total sales - sales returned

where,

Sales returned = Total sales × sales return percentage

                        = $850,000 × 4%

                        = $34,000

And, the total sales is $850,000

Now put these values to the above formula  

So, the value would equal to

= $850,000 - $34,000

= $816,000

5 0
3 years ago
Amazon’s home delivery of groceries and Instacart’s delivery of Whole Foods items are found where on the market development curv
Luden [163]

The home delivery of groceries by Amazon and Instacart's Whole Foods delivery fall under the market development curve of a. Early adopters.

<h3>Who are the early adopters?</h3>

These are people who are the first to try out a product before the rest of the market.

Amazon's grocery delivery service is a new service being offered by the company so those that use it are the first to use it which makes them early adopters.

Find out more on early adopters at brainly.com/question/14291606

#SPJ1

6 0
2 years ago
Other questions:
  • Compute the present value of $1,400 paid in three years using the following discount rates: 7 percent in the first year, 8 perce
    9·1 answer
  • Which of the following services is most likely to be equipment-based?a) the services provided in a driving schoolb) the services
    8·1 answer
  • Payday lending and cash advance companies are aggressively targeting which group of people
    8·1 answer
  • &amp;&amp;&amp;
    15·2 answers
  • Coffee and tea are substitutes for consumers. An increase in the price of coffee coupled with an increase in the number of tea g
    6·1 answer
  • At the end of the current year​ (before adjusting​ entries), Summer Corporation had a balance of $ 88 comma 000 in Accounts Rece
    14·1 answer
  • To correct a federal budget digit congress may?
    13·1 answer
  • Before year-end adjusting entries, Crane Company's account balances at December 31, 2017, for accounts receivable and the relate
    11·1 answer
  • 32. What is a predatory financial service?
    10·1 answer
  • In a market with an upward sloping supply curve and a downward sloping demand curve, a price floor?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!