Answer:
The answer is below
Explanation:
Given that Section 1231 assets are a term that is used to describe the real or depreciable trading property acquired for more than a year. For example, landed property, buildings, etc.
Hence, in this case, the correct answer or statement to the question are:
1. If Section 1231 assets are sold and the taxpayer has a realized loss, the loss is a fully deductible ordinary loss
2. If Section 1231 assets held long-term are sold for a realized gain, the taxpayer has a potential long term capital gain that may be taxed at favorable capital gains rates but this result often does not occur
Answer:
$106,595
Explanation:
Given:
Initial market rate = 9%
Dropped market interest rate, r = 7% per year
or
= 7% × [6 ÷ 12]
= 3.5% = 0.035
Remaining time, n = 9 years = 18 semi annual periods
Now,
Value of the bond at the retirement
= [ PVAF × Interest payment] + [ PVF × face value]
here,
Present value of annuity factor, PVAF = 
or
PVAF = 
or
PVAF = 13.189
And,
Interest payment = $100,000 × 8% × [6 ÷ 12 ] [since, 8% bonds]
= $4000
Present value factor = 
= 0.538
par value = $100,000
= [13.189 × $40] + [0.538 × 100,000]
= 52,758.7316 + 53,836.114
= $106,595
Hence,
The correct answer is option $106,595
Answer:
Explanation:
First we need to calculate the expected spot rates for the next 5 years using IRP....
Please Kindly go through the attached files for how this and other questions you require answers to are solved step by step.
Answer:
Firm A will spend $4,000.
Explanation:
The chemical dumped into the river daily by
Firm A = 50 ton
Firm B = 50 ton
ATQ,
The clean-up cost of Firm B before getting into the river = $50 per ton.
= $50 x 50tons = $2500.
2). Pollution rate as per government = $75 per ton
No. of permits = 40
= $75 x 40
= $3000
As we know,
The clean-up cost of Firm B is lesser than the cost of pollution permits with $500($3000 - $2500). Cleaning up the pollution would be best because it is a cheaper alternative..
The cleanup cost of Firm A per ton = $100 per ton.
= $100 x 50tons
= $5000
2). Pollution rate as per the govt. = $75 per ton
= $75 x 40 permits
= $3000.
The clean-up cost of Firm A is greater than the cost of pollution permits with $2000. Thus, the cleaning up the pollution would cost more for Firm A. Thus, they must go for purchasing the permits.
3). Purchasing 40 pollution permits would cost
= $100 x 40
= $4000.
