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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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Suppose an economy has 10,000 people who are not working but looking and available for work and 90,000 people who are working. W
Daniel [21]
<h3>In the given scenario unemployment rate is 10% </h3>

Explanation:

In the given problem,

Number of People who are working is 90,000

Number of People who are not working but looking and available is 10,000

Unemployment rate = Percentage of the total labor force that is unemployed but actively looking for employment and ready to  work.  

Unemployment rate = ((Unemployed people * 100) / (Total people in an economy (Working + Available for work)))

Unemployment rate = ((10000 * 100) / (90000+10000))

Unemployment rate = (1000000 / 100000)

Hence, Unemployment rate = 10%

5 0
3 years ago
Read 2 more answers
When Patey Pontoons issued 10% bonds on January 1, 2021, with a face amount of $640,000, the market yield for bonds of similar r
IRINA_888 [86]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1) Semiannually Rate of interest = 11% ÷ 2 = 5.50% = 0.055

Number of years (half yearly) = 4 × 2 = 8 years

PVIF Value = 1 ÷ (1 + Interest Rate)^Number of years

=1 ÷ (1 + 0.055)^8

= 1 ÷ 1.5347

= 0.65160

PVIFA Value = [1 -1 ÷ (1 + Interest Rate)^Number of years ÷  Interest Rate

= [1 - 1 ÷ (1 + 0.055)^8]  ÷ 0.055

= [1 - 0.65160] ÷ 0.055

= 6.33457

Particular  PV table value Multiply Amount  ($) PV value

Principle value  0.65160 × 640,000                          $417,024

Annually interest Value 6.33 ×     32,000                          $202,706

($640,000 × 6 ÷ 12 × 10%)  

Present Bond’s Price                                      $619,730

2).  

Journal Entry

On Jan.1,2021

Cash A/c         Dr.  $619,730

Discounts on bond payable A/c      Dr.  $20,270

 To Bond payable A/c         $640,000

(Being bond issued at discount is recorded)

3. The amortizable schedule is presented on the attachment below

4).

Journal Entry

June 30,2021

Interest expense A/c      Dr.  $34,085  

     To Cash A/c         $32,000

     To Discount on bond payable A/c    $2,085  

(Being interest expenses is recorded)  

5) On December 31,2021 Amount of bonds reported = $624,015

6). Interest expenses reported in income statement

= $34,085 + $34,200

= $68,285

7).

Journal Entry

On Dec. 31,2024

Interest expense A/c      Dr.  $35,032

   To Cash A/c         $32,000

   To Discount on bond payable A/c      $3,032

(Being interest expense is recorded)

On Dec.31,2024

Bond payable A/c       Dr.  $640,000

  To Cash A/c        $640,000

(Being interest expense is recorded)

5 0
3 years ago
The forecasting time horizon that would typically be easiest to predict for would be the A. intermediate range. B. short range.
Murrr4er [49]

Answer: B) Short range

Explanation:

Short range time horizon forecasting is prediction of the time span range till which the decisions regarding production, investments etc will work.This span is from three weeks lasting upto 1 year for making plans and accurate or actual predictions  .It is used in job plan, work-force stages etc.

Other options are incorrect because long, medium or intermediate are the horizon that can't be predicted easily as compared to short range horizon for making decision based on few weeks span.Thus, the correct option is option(B).

6 0
3 years ago
One hospital CEO insists on including performance data in the hospital’s annual report. "We do very well on most measures, exc
Paha777 [63]

Answer:

we do this to maintain record of institution. this is effective practice

3 0
3 years ago
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Your merchant fee is 3%. Your customers paid you 280,000 with cash. What is your total merchant fee?
gayaneshka [121]

Answer:

$8400

Explanation:

to find 3% you multiply 280,000 by 0.03

4 0
3 years ago
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