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n200080 [17]
4 years ago
13

A hurricane (declared a federal disaster) damaged a personal auto owned by Mr. and Mrs. South on June 15, 2018. Fair market valu

e before the flood $18,500 Fair market value after the flood 2,000 Cost basis 20,000 Insurance proceeds 13,000 Adjusted gross income for this year 25,000 Calculate the South's deductible casualty loss.
Business
1 answer:
QveST [7]4 years ago
5 0

Answer:

$900

Explanation:

South's deductible casualty loss = $900

Fair market value before the flood                               18500

Fair market value after the flood                                   (2000)

Decline in FMV                                                                16500

Cost basis                                                                        20000

Lesser of basis or decline in FMV                                 16500

Minus: Insurance proceeds                                           (13000)

Net loss                                                                           3500

Minus: $100 Floor                                                           (100)

10% of AGI                                                                      (2500)

Deductible Loss                                                             900

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8 0
3 years ago
If a payment cap is applied and the required payment does not cover the interest expense, the unpaid interest is added to the lo
spin [16.1K]

The condition when a payment cap is applied and the required payment does not cover the interest expense, the unpaid interest is added to the loan thereby increasing the loan balance even though the required payment is being made, is known as a negative amortization.

<h3>What is negative amortization?</h3>

A condition where the amount owed by an individual keeps adding even after the repayments are done is known as negative amortization.

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6 0
2 years ago
What are the adjusting journal entries for each month (june, september, december, march)?
san4es73 [151]

Answer:

June 2019

Interest Expense $ 2,531.25 (debit)

Bank $ 2,531.25 (credit)

September 2019

Interest Expense $ 2,531.25 (debit)

Bank $ 2,531.25 (credit)

December 2019

Interest Expense $ 2,531.25 (debit)

Bank $ 2,531.25 (credit)

March 2020

Interest Expense $ 2,531.25 (debit)

Bank $ 2,531.25 (credit)

Explanation:

For each Month, Recognise an Expense - Interest and Also de-recognise the Asset - Cash as interest is being paid.

Interest Expense Calculation = 3/12×$225,000×4.5%

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4 years ago
What investment per quarter does Luisa need to make at the end of each quarter into her savings account over 8 quarters to reach
EastWind [94]

Answer:

c. $1,010.36

Explanation:

Options <em>" ) $1,610.36 2) $522.93 3) $1,010.36 4) $110.02"</em>

<em />

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Pmt = FV / ((1+r)^n - 1) /  r

Size of the deposit = 10,000 / ((1.06^8) - 1) / 0.06

Size of the deposit = 10,000 / (1.59384807453 - 1) / 0.06

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Size of the deposit = 10,000 / 9.897467908833333

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Size of the deposit = $1,010.36

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