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shepuryov [24]
3 years ago
7

A customer invests $100,000 in a real estate limited partnership. In the first year of operations, the investor is allocated $20

,000 of income; $80,000 of interest deductions; $45,000 of operating expenses; and $25,000 of depreciation expense. Assuming that the investor has sufficient passive income, this investor may deduct a net loss of how much from his tax return for this year?
Business
1 answer:
nata0808 [166]3 years ago
3 0

Answer:

-$130,000

Explanation:

The computation of the net loss deducted from his return is shown below:

= Income - interest deductions - operating expenses - depreciation expenses

= $20,000 - $80,000 - $45,000 - $25,000

= $20,000 - $150,000

= -$130,000

Since the value comes in negative which reflects the net loss for the year

We simply deduct the revenues from the expenses so that the net income or net loss could come

You might be interested in
Balance Sheet
miv72 [106K]

Answer:

Dynamic Weight Loss Co.

DYNAMIC WEIGHT LOSS CO.

Classified Balance Sheet as of June 30, 20Y7

Assets

Current Assets:

Cash                                                     $119,630

Accounts Receivable                              26,100

Prepaid Insurance                                    8,400

Prepaid Rent                                            6,000

Supplies                                                   11,200

Total current assets                            $171,330

Long-term Assets:

Land                                                     375,000

Equipment                          325,900

Accumulated Depreciation (32,600) 293,300

Total long-term assets                     $668,300

Total assets                                      $839,630

Liabilities and Equity

Current Liabilities:

Accounts Payable                              $10,830

Salaries Payable                                    7,500  

Unearned Fees                                   21,000

Total current liabilities                     $39,330

Equity:

Common Stock                                180,000  

Retained Earnings                          620,300

Total equity                                  $800,300

Total liabilities and equity           $839,630

Explanation:

a) Data and Calculations:

Trial Balance as of June 30, 20Y7

Account Titles                      Debit        Credit

Cash                                $119,630

Accounts Receivable         26,100

Prepaid Insurance               8,400

Prepaid Rent                       6,000

Supplies                              11,200

Land                                375,000

Equipment                     325,900

Accumulated Depreciation - Equipment $32,600

Accounts Payable                                        10,830

Salaries Payable                                            7,500  

Unearned Fees                                           21,000

Common Stock                                         180,000  

Retained Earnings                                   620,300

Total                            $872,230           $872,230

4 0
3 years ago
A small craft store located in a kiosk expects to generate annual cash flows of $6,800 for the next three years. At the end of t
Dafna11 [192]

Answer:

The monetary value is $24,201.23

Explanation:

Giving the following information:

Cash flows:

Year 1= $6,800

Year 2= 6,800

Year 3= 6,800

Year 4= $15,000.

The discount rate is 15 percent.

We need to discount each cash flow to the present value:

PV= FV/(1+i)^n

Year 1= 6,800/1.15= 5,913.04

Year 2= 6,800/1.15^2= 5,141.78

Year 3= 6,800/1.15^3= 4,471.11

Year 4= 15,000/ 1.15^4= 8,576.30

Total= $24,201.23

6 0
3 years ago
In March 2012, Yoshiro Inc.. decided to retire an outstanding bond issue before maturity. The coupon rate on the bond issue was
natali 33 [55]

Answer:

  • b. Cash from Financing Activities  
  • d. Bonds Payable
  • e. Net Income

Explanation:

Bonds are a form of long term debt and in the cashflow statement this goes to the Financing section. A retirement of bonds would reduce cash and this would come from the Financing activities.

Bonds Payable will also decrease because the bond that is being retired will reduce the number of bonds payable that the company has to pay off.

Finally the Net income will reduce as well to reflect the loss on bond retirement. The bonds were issued at a discount owing to interest rates being higher than the coupon rate in 2011 but on the day the bonds were retired they were selling at a premium with interest rates at 4%. The company paid more than they received and this loss will reduce the net income.

3 0
2 years ago
Brief Exercise 9-17 Record early retirement of bonds issued at a premium (LO9-7)
butalik [34]

Answer:

Dr Bonds payable                       $50,700

Dr premium on bonds payable     $4,265

Cr Cash                                                                                 $53,000

Cr gain on bonds retirement($50,700+$4,265-$53000) $1,965

Explanation:

The premium yet to be amortized on the bond at retirement is the carrying  value minus face value i.e  $54,965-$50,700=$4265

The premium  on bonds payable would now be debited with $4265

The cash paid on retirement would be credited to cash account

The face value of the bonds payable of $50,700 would be debited to bonds payable in order to show that the obligation has been discharged.

4 0
3 years ago
Fedor, Inc. has prepared the following direct materials purchases​ budget: Month Budgeted DM Purchases June $ 69 comma 000 July
cricket20 [7]

Answer:

C) $77,090

Explanation:

June 69000 (40% in July, 50% in AUgust)

July 80000 (40% in August, 50% in Sepetember)

August 77500 (40% in September, 50% in October)

September 77900 (40% in October)

October 71800 (10% in October)

Total budgeted cash payments in October = 71,800 x 10% + 77,900 x 40% + 77,500 x 50% = 77,090

6 0
3 years ago
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