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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

brainly.com/question/2617534

2. Learn more about the state income tax

brainly.com/question/2996312

3. Learn more about the personal taxation

brainly.com/question/1762937

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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Nina [5.8K]

Answer:

b.There is no effect on the accounting equation as one asset account increases while another asset account decreases.

Explanation:

On billing the customer, sales account would have been credited and accounts receivables debited.

On payment by the customer, accounts receivables would be credited and cash account debited.

Hence there will be no increase/decrease in asset as cash and receivables would nil off.

As such, the right option is b.There is no effect on the accounting equation as one asset account increases while another asset account decreases.

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3 years ago

Manuel is a lawyer who enjoys apples and pears. suppose that the price of apples increases. as a result, the purchasing power of

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This phenomenon is known as the "income" effect.

The income effect refers to an adjustment in the interest of a decent or administration, instigated by an adjustment in the purchasers' optional wage.

The income effect is the impact on real income when value changes - it tends to be certain and negative. Beneath, as value falls, and expecting ostensible salary is steady, a similar ostensible pay can purchase a greater amount of the great - thus interest for this (and different products) is probably going to rise.

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4 years ago

The Postal Service is negotiating a new three-year agreement with two of its unions. One represents the clerks and one the mail

Bezzdna [24]

Answer: A. The actions of the clerk and carrier unions are not prohibited, and management does not have any recourse to recover damages nor to win an Unfair Labor Practice.

Explanation:

An unfair labor practice simply occurs when the National Labor Relations Act is being violated. Some if the unfair labor practice include when a worker is threatened when he or she files a ULP charge. Also, the refusal to negotiate with an agency in good faith etc.

In the scenario in the question, we should note that the actions of the clerk and the carrier unions are not prohibited, and then the management does not have any recourse to recover damages nor to win an Unfair Labor Practice.

Therefore, the correct option is A.

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3 years ago

Jane purchased a piece of equipment for $250,000 for use in her business. She incurred freight charges of $3,500, installation c

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Answer: $36,000 loss

Explanation:

Purchase cost = $250,000

Freight charges = $3500

Installation charges = $2500

Maintenance cost = $5000

Depreciation = $25000

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Total cost incurred = $(250,000 + 3500 + 2500 + 5000)

Total cost incurred = $261,000

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Book value of equipment = $261,000 - $25,000 = $236,000

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Gain/Los = $236,000 - $200,000

$36,000 loss

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4 years ago

With only two goods, if the income effect is in the same direction as the substitution effect then the good is ____.

Leya [2.2K]

Answer:

Normal good

Explanation:

Income effect Is change in quantity demanded when the consumers purchasing power change as a result of a change in real income.

Substitution effect is when quantity demanded falls as a result of rise in price of a good which leads consumers to purchase cheaper alternatives.

A normal good is a good whose demand increases as income increases.

If the price of a normal good falls, the real purchasing power of the consumer increases and the consumer buys more of the good. Also, the consumer substituites from more expensive alternative goods to the more cheap normal good. The income and substitution effect both move in the same direction.

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3 years ago