Answer:
a. Brad might be allowed to deduct up to $25,000
or Brad may be allowed to deduct the loss if he works more than 750 hours as a material participant in connection with the townhouse complex and more than half of personal service.
b. The reduction is equal to 50% of AGI in excess of $100,000. The deduction will be phased out completely if AGI reaches $25,000
Explanation:
Adjusted Gross Income is the final taxable income after all the allowable deductions are adjusted in the income. A tax payer can deduct up to $25,000 for the passive losses. This is standard deduction which Brad can deduct from the income.
Answer:
The correct answer is letter "D": The use of a higher estimated life and a higher residual value will lower the annual amount of depreciation expense recognized on the income statement.
Explanation:
Depreciation distributes the cost and cost over the useful life of the assets of tangible and real assets. A business could depreciate an asset over a period of up to thirty years, depending on the type of asset it is. There are many depreciation methods but, among the most common we can find the <em>Straight-line method, the Double Declining Balance method</em>, and <em>the Units of Production method</em>. As long as the estimated life of the asset and its residual value is high, the amount filed for the depreciation will be lower.
Answer:
Jones is right in this lawsuit
Explanation:
Arbitration is the process by which disputes are settled between parties. When there is a disagreement between parties an arbitrator comes in to give a fair and unbiased view of the situation.
A solution that is agreed to by all parties is agreed upon to settle.
In this scenario where Jones is filing a lawsuit against BigMoney LLC for violating the Securities Exchange Act by engaging in fraudulent excessive trading, this is a violation of the law and not a dispute between parties.
So the arbitration clause is is not binding and the arbitration clause should be nullified.
Answer: Mary
Explanation:
GDP simply means the gross domestic product and it is the value in terms of money based on the goods and services that a country produces.
With regards to the question, Mary is right as the GDP can be used to denote economic growth and also know how a particular economy is doing. Wealthy nations usually have a huge GDP.
Answer:
the market value of the property is $628,300
Explanation:
The computation of the market value of the property is shown below;
Gross rent $10,000 × 12= $120,000
Now
= $120,000 × .92 (occupancy rate)
= $110,400
After that
= $110,400 - $47,570
= $62,830
And ,finally the market value of the property is
= $62,830 ÷ 0.10
= $628,300
hence, the market value of the property is $628,300