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Gwar [14]
3 years ago
13

Leker exchanged real property that was used exclusively for business and had an adjusted tax basis of $20,000 for new real prope

rty. The new real property had a fair market value of $10,000, and Leker also received $3,000 in cash. What was Leker tax basis in the acquired real property?
Business
1 answer:
goldfiish [28.3K]3 years ago
6 0

Answer:

$17,000

Explanation:

Leker's Old Property Adjusted Tax Basis = $20,000

To calculate the new basis, subtract the $3000 recieved in cash from the new property.

New Tax Basis; $20,000-$3,000= $17,000

The transaction of Leker to exchange a real property for another led to a loss: Meaning a Property of $20,000 was exchanged for a property of $10,000+ $3,000 (cash)= $13,000

The Loss on the transaction= $20,000- $13,000= $7,000

Due to the loss no gain is recognized and the $3000 will reduce the basis for his new asset.

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He is acting as a spokesperson.

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According to Mintzberg, Spokesperson is the person who is responsible for representing company on a public forum and is not associated with management of companies core operation.

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A variety of different savings products are offered by financial institutions. Two of the most frequently sold savings investmen
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Statement Savings Account is said to be a deposit account held by a bank where a customer can earn interest .

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In Statement Savings Account, the interest rate gained can either increase or decline overtime while putting into consideration the interests rate set by the federal reserve.

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In Statement Savings Account, there may be restrictions as regards the minimum account balance.

while

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3 years ago
3. Vocabulary test. Explain the differences between: a. Real and financial assets. b. Capital budgeting and financing decisions.
VikaD [51]

Answer:

The correct answer is:

a) A real asset is a Tangible Asset, Like a machine, a Land or a Building. Real Assets are used to generate resources and, therefore, produce changes in the financial situation of the company that owns them. While a financial asset on the other hand constitutes the right to collect an account in the future. In the case of companies, you can think of an account or document receivable; For natural persons, a financial asset can be a document that compares a plaque investment in a banking institution and that will produce a cash flow in the future.

b) Investment projects are independent, perfectly divisible, and the company can invest any amount of money in a project. Only investment opportunities existing at the present time and not future are considered.  While capital budgeting, it is a projection either in the short term or in the long term, and the reasons for making this budget are that:  Benefits from the point of view of administrative planning and control., an investment proposal must be judged in relation to whether it provides a return equal to or greater than that required by investors y the evaluation of projects through mathematical-financial methods.

c) When a corporation is established, its shares may be in the hands of a small group of investors, perhaps the company's administrators plus some sponsors. In this case, the shares are not sold to the public and the company is closed. Over time, if the company grows and new shares are issued to raise capital, these shares go public. The company becomes a public company.

d) Limited liability means that the liability of each partner's debt is limited to their investment in the business, that is, they cannot be held personally responsible for the debts of other parties, if the company is sued or forced to close, the Each partner's business assets may be liquidated, but his personal assets are safe. Furthermore, unlimited liability means that all parties are responsible for all debts of the company, regardless of how it was created. If a partner commits acts that cause the business to reconcile, all parties become part of the process, not just the partners whose actions caused the judgment.

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Answer:

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Explanation:

If the money supply is increased by 10%, the inflation rate will also increase by 10%.

In the short run the economy will be able to produce an output which is higher than the potential GDP, but once the inflation rate catches up, both the unemployment rate will increase and the real GDP will return to its potential output level.

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