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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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On her way to a concert, Hermione stopped at a restaurant for dinner. In her purse, she had 12 bills worth a total of $40. She h
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The correct statement will be that the maximum number of $5 bills that can be in Hermione's purse will be 7. So, the correct option that matches the statement is D.

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<h3>Calculation of bills. </h3>

  • Considering Hermione has at least one bill of $1, then the computation of total bills out $40 can be shown as below,

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Hence, it can be concluded that option D is correct that there are seven bills of $5 in the purse of Hermione and hence there will be five bills of $1  in her purse.

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