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4 years ago

Tax that you pay when making a profit from selling a house is an example of:

Business

2 answers:

Monica [59]4 years ago

7 0

The option (A) is correct.

Tax that you pay when making a profit from selling a house is an example of capital gain tax.

Further Explanation:

Capital Gain Tax

Capital gain tax is a direct tax. It a on the capital gain earned at the time of the sales of fixed assets. Capital gain is the difference between the sales value and the purchase value of an asset. When the owner of an asset sells the asset in the market, and the sales price is higher than the purchase price, then the difference is known as a capital gain or profit. The government charges capital gain tax on the capital gain or profit. Capital gain tax varies from 0% to 20%. Capital gain tax differs from asset to asset.

Tax on the profit of sales of a house:

The tax on the profit of sales of a house is an example of capital gain tax.

House is a fixed asset. When the owner of the house sells, it then the profit on the sales of the house is capital gain. The government would charge capital gain tax on the capital gain (profit) earned on the sales of the land.

Thus, the taxpayer has to pay capital gain tax on the profit earned from the sales of the house.

Learn more:

1. Learn more about the capital gain tax

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2. Learn more about the state income tax

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3. Learn more about the personal taxation

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Answer details:

Grade: Senior School

Subject: Taxation

Chapter: Capital Gain Tax

Keywords:Tax, making, profit, from selling a house, example, Capital Gains Tax, Sales Tax, Income Tax, Property Tax.

UkoKoshka [18]4 years ago

4 0

Tax that you pay when making a profit from selling a house is an example of: A. Capital Gains Tax
Every time you sell an asset that is not under investment category, The difference between your selling price with the initial cost when you buy that asset should be recorded as a Capital Gain.
In United states, you're inclined to pay around 28 % from the total capital gain as Capital Gain Tax

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The inventory costing method that reports the earliest costs in ending inventory is:_______

nikdorinn [45]

Answer:

a. LIFO.

Explanation:

The LIFO method refers to an inventory method that means the item which is last purchased should be sold first during the period of time. So in this inventory method the earliest cost in the closing inventory should be recorded

Therefore the given situation, the correct option is a.

And, the other options are wrong

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3 years ago

Haven Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $600,

Katena32 [7]

Answer:

Debit Bad debt expense $19,000

Credit Allowance for doubtful debt $19,000

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.

Amount that may be uncollectible

= 4% * $600,000

= $24,000

Given that the Allowance for Doubtful Accounts has a $5,000 credit balance before adjustment, the additional amount to be adjusted for

= $24,000 - $5,000

= $19,000

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3 years ago

the money supply represents the amount of money the federal reserve bank makes available for people to buy goods and services. q

arsen [322]

The main source of income for the Federal Reserve System is interested in US government assets that the Federal Reserve has purchased through open market activities.

<h3>What determines the supply of money?</h3>

The Central Bank controls the money supply through its "monetary policy," and the economy must function with that predetermined amount of money. The money supply is seen as entirely vertical because the economy has no bearing on its amount (on models).

By increasing or decreasing the monetary base, the Fed can regulate the amount of money in circulation. The amount of money in circulation plus the deposits that depository institutions have with the Federal Reserve make up the monetary base, which is correlated with the size of the Fed's balance sheet.

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2 years ago

What is an assessment of what you own and what you owe?

mamaluj [8]

The term that is being referred above is the Personal Balance Sheet or Statement. This shows the result of your assessment as to what you own and what you can owe. This assessment aims to check your financial health and the status of your personal finances. Answer to this is the first option.

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4 years ago

Read 2 more answers

Oregon Outfitters issues 1,700 shares of $1 par value common stock at $20 per share. Later in the year, the company decides to p

k0ka [10]

Answer:

A. Dr Cash $34,000

Cr Common Stock $1,700

Cr Paid in capital in excess of par-Common Stock $32,300

B. Dr Treasury stock $4,560

Cr Cash $4,560

C. Dr Cash $6,480

Cr Treasury stock $4,560

Cr To Paid in capital-Treasury stock $1,920

Explanation:

a. Preparation of the journal entry to Record the original issue of the 1,700 shares

Dr Cash $34,000

(1,700 shares × $20)

Cr Common Stock $1,700

(1,700 shares × $1)

Cr Paid in capital in excess of par-Common Stock $32,300

($34,000-$1,700)

(Being issue of common stock is recorded)

b. Preparation of the journal entry to Record the purchase of 240 shares

Dr Treasury stock $4,560

(240 shares × $19 per share)

Cr Cash $4,560

(Being repurchase of treasury stock is recorded)

C. Preparation to record the Journal entry if Oregon Outfitters resells the 240 shares of treasury stock at $27 per share.

Dr Cash $6,480

(240 shares × $27 per share.)

Cr Treasury stock $4,560

(240 shares × $19 per share)

Cr To Paid in capital-Treasury stock $1,920

($6,480-$4,560)

(Being reissue of treasury stock is recorded)

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3 years ago