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Elodia [21]
3 years ago
6

Kimberly, a single taxpayer, sold three capital assets during September 2019. She sold a collectible painting held five years fo

r a gain of $3,000; stock held three years for a loss of $1,000; and stock held seven years for a gain of $5,000. Kimberly’s ordinary income marginal tax rate is 32% and her Regular LT Capital Gain tax rate is 15%. Compute Kimberly’s additional tax due as a result of these capital transactions.
Business
1 answer:
lawyer [7]3 years ago
5 0

Answer:

$1,050

Explanation:

since these three transactions involved capital gains or losses (investments lasted more than 1 year), they will be taxed using the capital gains tax rate = 15%

total capital gains = $3,000 (painting) + $5,000 (stocks) - $1,000 (other stocks) = $7,000

total taxes due = $7,000 x 15% capital gains tax rate = $1,050

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A company pursuing vertical integration can gain market power over its competitors through all of the following EXCEPT: a. avoid
Helen [10]

Answer:

B. Improved adjustment to technological changes.

Explanation:

Vertical Integration: It is a strategy to gain competitive advantage by taking complete control over a few stages of production or distribution. The company implements vertical integration to reduce the cost of production, reduce dependence on others, improve the quality of the product, etc.

In the given case, the company pursuing vertical integration can gain market power over its competitors through improved quality, reduction in cost, and reduction in operation cost, however, it does not improve adjustment to technological changes.

3 0
3 years ago
2 brothers, Joe and Bob get equal dollar amounts of securities as a gift. Joe immediately sells his securities and deposits the
raketka [301]

Answer:

Opportunity cost

Explanation:

The opportunity cost Bob's brother Joe $20,000. Remember, the term Opportunity cost refers to the cost (loss in this context) incurred when one forgoes an alternative best option–holding them in a brokerage account, in place for a less beneficial one.

Thus, Bob chose the best alternative over his brother.

8 0
3 years ago
Pools purchased $ 60 comma 000 of 14​% DMH bonds on January​ 1, 2018​, at a price of 159.5 when the market rate of interest was
Damm [24]

Answer:

Initial purchase of the bonds on 1st January 2016

Assuming that $60,000 bonds includes 600 bonds with face value of $100 each

Now, Lamar insurance purchased these bonds at a discount price of $159.5 each bond.

So, the total amount invested by Lamar insurance = 600 bonds * $159.5 = $95,700

Therefore journal entry for recording purchase of bonds on 1st January 2016 will be,

Investments in bonds A/c Debit $95,700

To, Bank/Cash A/c credit $95,700

Note: The bonds have been issues at a discount and it seems to be reasonable owing to the fact that the market interest rate is 6% , whereas the bonds have a interest rate of 14%.

Interest entry on the first interest payment date of 1st July 2016

Interest amount to be received on 1st July 2016 = ($60,000 *14%)*6/12 = $4.200

Since interest is paid semi annually, therefore we have taken interest for 6 months.

Journal entry will be:

Bank A/c Debit $4,200

To, Interest on bonds A/c Credit $4,200

5 0
3 years ago
Transactions involving the purchase and sale of fixed assets would be considered _______ activities.
ohaa [14]
Transactions involving the purchase and sale of fixed assets would be considered INVESTING activities.
Investing activities refers to those activities carried out by the company which involve sales or purchases of fixed assets such as building and equipment.
4 0
3 years ago
When forecasting balance sheet financials, an unusually high forecasted cash balance suggests which of the following? A. Sales a
Inga [223]

Answer:

The correct option is E

Explanation:

If the business is forecasting the financials of the balance sheet and mostly the high forecasted balance of cash implies that the company or the firm could pay off the debt in the next or the following year.

The forecasted high cash balance most likely decrease the long term and the short term debt of the company in order to reduce the cash levels to a consistent level.

So, none of the above options provided is correct.

7 0
3 years ago
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