Answer:
$4,000 is treated as a capital gain and then reduced by the un-offset net losses in 2016 ($300) and 2017 ($100) to arrive at net capital gain of $3,600 ($4,000 - 300 - 100). $0 of the amount is treated as an ordinary income.
Explanation:
Section 1231 gain arises when an asset (real property or depreciable business property) is sold for more than its current tax basis. The gain is regarded as a capital gain and taxed at the lower capital gain rates and not as ordinary income.
Section 1231 property are assets used in trade or business and held by the Taxpayer for more than one year. A gain on the sale of Section 1231 business property is treated as a long-term capital gain.
A credit report is a detailed report of an individual's credit history.
Answer:
$317,500
Explanation:
The computation of the amount of bad debt expense is shown below:-
Bad debt expenses = (Accounts receivable × Outstanding receivable percentage) - Opening Allowance for doubtful debts
= ($6.57 million × 5%) - $11,000
= $317,500
Therefore for computing the bad debt expense we simply applied the above formula.
I believe the Appraier is using: <span>Direct Sales Comparison Approach (mostly used with residential properties.
Direct sales comparison approach is an appraisal method that being done by comparing the sales that happen between similar properties/products to determine the value of that properties/productss</span>
