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
A rapid increase in the money supply may lead to a(n):
diamong [38]
<span>A rapid increase in the money supply may lead to a "Deflation"

Hope this helps!
</span>
8 0
3 years ago
Calculate the present value of the following: a-1. Annual payment of $800 for 10 years at 5% interest. (Do not round intermediat
kipiarov [429]

Answer:

a-1 Present value = 6,177.39

a2- Present Value =6,227.79

a3- Choose the payment stream with the highest present value = a2

b1- Present Value=3,353.98

b2-Present Value=2,805.28

b3-Choose the payment stream with the highest present value = b1

Explanation:

a-1 describes an ordinary annuity whose present value is calculated as follows:

Present value =PMT*\frac{[1-(1+i)^-^n]}{i}

where PMT=$800; i= 5%, n= 10

Present value =800*\frac{[1-(1+0.05)^-^1^0]}{0.05} = 6,177.39

a2- Present value =600*\frac{[1-(1+0.05)^-^1^5]}{0.05} = 6,227.79

a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.

b1- Present value =800*\frac{[1-(1+0.20)^-^1^0]}{0.20} = 3,353.98

b2-Present value =600*\frac{[1-(1+0.20)^-^1^5]}{0.20} =2,805.28

b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.

3 0
3 years ago
In what type of economy do people officials determine the 3 basic economic questions?
Reil [10]
Most likely a Command economy.
4 0
3 years ago
your friend does not have enough money to go to the football game he/she wants you to sneak into the ballgame without paying.wha
madam [21]
Positive outcome would be having a good time with your friend and negative consequences would be getting in trouble if caught and or banned from going to football games
5 0
3 years ago
Read 2 more answers
Sarah is now in the Singapore airport and has 6000 Singapore dollars in her pocket. Sarah is next going to the Czech Republic an
timurjin [86]

Answer:

98,760 Czech korunas for 6,000 Singapore dollars

Explanation:

For computing the number of Koruna she is able to exchange first we have to determine the Singapore dollar exchange rate in Czech koruna which is

= Singapore dollar exchange rate ÷  Czech exchange rate

= 0.790 ÷ 0.048

= 16.46

And, there are 6,000 Singapore dollars in her pocket

So, the number of Koruna she is able to exchange  is

= 16.46 × 6,000 Singapore dollars

= 98,760 Czech korunas for 6,000 Singapore dollars

6 0
3 years ago
Other questions:
  • Suppose you have $10,000 in your checking account. You withdraw $500 cash from your account and hide it under your pillow for fu
    11·1 answer
  • A market share of 78.5 percent would be represented in a pie chart by a slice with a central angle of:
    5·1 answer
  • One criticism of servant leadership is question 6 options: researchers have been unable to reach a consensus on a common definit
    8·1 answer
  • Jessica works for ABC Shoes. At​ ABC, Jessica is responsible for establishing​ structure, strategic​ goals, and guiding her empl
    9·1 answer
  • Sheffield Corporation has 84,000 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to s
    9·1 answer
  • Complete the statement using the correct term.
    15·1 answer
  • What is progressive discipline
    14·2 answers
  • Hillary enters into a shipment contract with a dress manufacturer for fifty red dresses. The dress manufacturer sends fifty blue
    11·1 answer
  • Blue Spruce Corp. reported net income of $194,740 for 2022. Blue Spruce Corp. also reported depreciation expense of $36,900 and
    11·1 answer
  • Vernon Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-qualit
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!