1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tekilochka [14]
3 years ago
8

On June 1, 2015 Heloise gave Henrietta a gift of stock worth $10,000. Heloise had purchased the stock on January 1, 2015 for $13

,000. Henrietta sold the stock to an unrelated party on January 1, 2016 for $13,500. What is the amount and character of Henrietta's gain or loss upon the sale?
Business
1 answer:
padilas [110]3 years ago
3 0

Answer:

$500 short-term capital gain

Explanation:

Henrietta's gain = selling price - stock's basis = $13,500 - $13,000 = $500

Since Henrietta received the stocks on June 1, 2015, and sold them on January 1, 2016, only 7 months had passed, therefore, this transaction would be considered a short term capital gain.

When a gift is sold (in this case the stocks), a taxpayer can use the basis for computing gains. If the stocks were sold at a loss, Henrietta should use the lower value (at the moment of the gift) to determine her loss.

You might be interested in
How many powered fork lift accidents occur each year
Scrat [10]
34,900 injuries a year and around 80deaths per year
8 0
3 years ago
Saturn Industries purchased and consumed 64,000 gallons of direct material that was used in the production of 17,000 finished un
Nikitich [7]

Answer:

The actual price = $1.08

Explanation:

The standard material price can be worked out as follows:

<em>Step 1: Work out the standard price of material  using the material usage variance</em>

Standard price = Material usage variance/(standard quantity of material - actual quantity)

Standard quantity of material = standard qty per unit × actual production

                                              = 4 × 17,000 =68,000

Standard price =  2,800/(68,000-64,000)= $0.7

<em>Step 2 : Work out the Actual material price using the material price variance</em>

Material price variance = (Standard price - Actual price )× Actual quantity of material

6,400 =  (y - 0.7) ×  17,000

6400 = 17,000y  - 11,900

17,000 y = 6,400 + 11,900

y = 18,300/17,000= 1.08

The actual price = $1.08

5 0
3 years ago
What is prohibited in a command economy?
aleksandr82 [10.1K]
The answer is b I’m pretty sure
8 0
2 years ago
ndicate whether each of the following costs should be classified as a product cost or as an SG&amp;A cost in accordance with GAA
Leokris [45]

Answer:

 

Explanation:

The product cost is a combination of direct material cost, direct labor cost, and the manufacturing overhead cost. The manufacturing overhead cost is an indirect cost which is related to the factory expenses.

And, the SG&A cost is a sales, general ,and admin costs incurred to advertise the company's products so that it can accomplish its sales targets which can build a good reputation in the market.

So, the categorization is shown below:

Direct materials used in a manufacturing company. = Product cost

Indirect materials used in a manufacturing company. = Product cost

Salaries of employees working in the accounting department. = sales, general ,and admin costs

Commissions paid to sales staff. = sales, general ,and admin costs

Interest on the mortgage for the company’s corporate headquarters. = sales, general ,and admin costs

Indirect labor used to manufacture inventory. = Product cost

Attorney’s fees paid to protect the company from frivolous law suits. = sales, general ,and admin costs

Research and development costs incurred to create new drugs for a pharmaceutical company. = sales, general ,and admin costs

The cost of secretarial supplies used in a doctor’s office. = sales, general ,and admin costs

Depreciation on the office furniture of the company president. = sales, general ,and admin costs

4 0
3 years ago
im was a crook. He embezzled $450,000 from his employer. When his employer found out about his misdeeds, before even conducting
Masja [62]

Answer:

Unless the company is 100% certain that it can prove Jim's misdeeds and has all the evidence to support their accusation, they should have waited for the police to act first before going to the newspaper. If their is the minimum chance that they cannot prove their accusations, Jim might be able to sue them for libel.

5 0
3 years ago
Other questions:
  • Joker stock has a sustainable growth rate of 7 percent, ROE of 10 percent, and dividends per share of $1.20. If the P/E ratio is
    14·1 answer
  • Carmen is giving a persuasive presentation at her university tomorrow. During the speech design process, Carmen asks herself why
    6·1 answer
  • The ABC Company sells plastic model cars in retail stores primarily to hobbyists. It has decided to modify the cars’ exterior pa
    5·1 answer
  • Jase Manufacturing Co.'s static budget at 7,800 units of production includes $39,000 for direct labor and $3,120 for electric po
    14·1 answer
  • Tom is the quality control manager for the company XYZ. XYZ recently received some complaints about its product D's quality and
    6·1 answer
  • According to the Taylor rule, if inflation has risen by 6 percentage points above its target of 2 percent, the Fed should:_____.
    6·1 answer
  • A company purchased a plant asset for $53,000. It has a salvage value of $3,000 and annual depreciation expense of $5,000. It ca
    10·1 answer
  • Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The compan
    7·1 answer
  • Which of the following statements describes the most likely reason why
    13·1 answer
  • An investor purchased a property for $350,000. The investor paid a $150,000 down payment and obtained a $200,000 mortgage. The g
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!