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omeli [17]
3 years ago
14

Lincoln has used a piece of land in her business for the past five years. The land qualifies as §1231 property. It is unclear wh

ether Lincoln will have to recognize a gain or loss when she eventually sells the asset. She asks her accountant how the gain or loss would be characterized if she decides to sell. Her accountant says that selling §1231 assets gives sellers ""the best of both worlds."" Explain what her accountant means by this.
Business
1 answer:
Mashcka [7]3 years ago
5 0

Answer:

Explanation Below.

Explanation:

By Selling the property, the company gains cash from the sale, and also has been using the land for the business.

Land does not depreciate in accounting terms, however, it will depend on the market value of the land. In most cases the land will appreciate and have a greater value each year.

When the accountant states that selling the asset gives the seller "the best of both worlds" the accountant is referring to selling the land for a greater value than purchased and now the cash can be used to purchase another asset that will also bring value to the company.

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Which of the following is true of the Discount on Bonds Payable account? The bonds are due inten years.A) It is subtracted from
Aliun [14]

Answer:

A) It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the balance sheet

Explanation:

The discount on Bonds payable, as their name implies, decrease the Bonds Payable carrying value. A bond with discounts, was issued at a lower price than his face value. The discount on bonds represent that difference.

It takes amortization while the time past, until at maturity, their balance is zero, to represent the reality, the obligation for the company is for the face value, so the carrying value of bonds payable should equal the face value.

Last, because the bonds are due in ten-year their place is the long-term liabilities. As their obligation are not within the 12 month period to qualify as short-term

8 0
3 years ago
"this process of continuous alteration was applied not only to newspapers, but to books, periodicals, pamphlets, posters, leafle
natta225 [31]
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7 0
3 years ago
Wendell Company provided the following pertaining to its recent year of operation:
myrzilka [38]

Answer:

Option (B) is correct.

Explanation:

Wendell's total stockholders' equity increase during the recent year of operation:

= Issued common stock - Cash dividend declared + Net Income - Stock dividend distributed + Sale of treasury stock below cost

= $50,000 - $20,000 + $70,000 - $23,000 + $7,000

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3 0
3 years ago
Why is it beneficial for businesses to be stationed in cities?
masya89 [10]
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5 0
3 years ago
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-Dominant- [34]

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7 0
3 years ago
Read 2 more answers
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