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ehidna [41]
4 years ago
5

Darlene owns 500 shares of Sandmayor, Inc., common stock that she purchased several years ago for $21,000. During the current ye

ar, the Sandmayor stock declines in value. Darlene decides to sell the stock to realize the tax loss. On December 17, she sells the 500 shares for $12,000. Her investment adviser tells her she thinks the Sandmayor stock probably will begin to increase in value next year. On this advice, Darlene purchases 600 shares of Sandmayor common stock on January 10 of the next year for $15,000. The adviser turns out to be right—Darlene sells the 600 shares in May for $22,600. Complete the bulleted statements below that explain the tax effect of the sales on Darlene's taxable income in each year. Do not round intermediate per share amounts, but round final answers to the nearest dollar.
Business
2 answers:
guapka [62]4 years ago
7 0

Answer:

The solution is shown in the file attached below

hope it helps your question.

Explanation:

Download docx
Anastasy [175]4 years ago
6 0

Answer:

Darlene's had a loss of $9000 in December

Darlene's made a profit of $7600 in May

Explanation:

Given data;

Darlene's old shares = 500 at $21,000

Darlene's sold old shares = $12,000 December 17

Darlene's purchases new  shares = 600 at $15,000 January 10

Darlene's sold new share at $22,600 in May

The tax effect of sales on Darlene's taxable income can be determined as follows;

1. Deductible loss

2. Realized gain or loss

1. Deductible loss: Old shares

Cost price = $21,000

Selling price = $12,000

Profit = Selling price - Cost price

Profit = $12,000-$21,000

         = -$9000

Darlene's had a loss of $9000 in December

2. Realized gain or loss: new shares

Cost price price = $15,000

Selling price = $22,600

Profit = Selling price - Cost price

         = $22,600 - $15,000

         = $7600

Darlene's made a profit of $7600 in May

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3 years ago
EA12.
BaLLatris [955]

Answer:

$38,400

Explanation:

<em>1. Cash Purchases:</em>

The total purchases in the month of March is of $35,000.

It is given that 70% of Purchases are for cash.

Hence, 70% of $35,000 would be;

$39,000 x 0.70

$27,300

<em>2. Credit Purchases: </em>

Remaining Balance of Purchases from the month of February:

For the month of February Cash Purchases can be calculated as follows;

$37,000 x 0.70

$25,900

Remaining Balance to be paid in March for the month of February can be calculated as follows;

$37,000 - $25,900

$11,100

<em>3. CASH PAYMENT for PURCHASES in MARCH:</em>

Cash Purchases = $27,300

Credit Purchases = $11,100

Hence;

<em>Cash Payment for purchases in March = Cash Purchases + Credit Purchases </em>

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Answer:

(C) the intended use of a product.

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Implied as the term means that it is obvious, further guarantee means that the guarantee is obvious.

Now, this is because of the use of the product, as for example there is an equipment called heater, which is generally sold in winters, as it warms the room.

Now it is implied that the heater shall at-least be in proper condition and shall work without any failure for one season of winters.

The correct answer is,

Statement C

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