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Alchen [17]
2 years ago
10

Chicago Investors, Inc. is interested in preserving a certified historic structure in downtown Chicago in 2019. The building wil

l cost $2,000,000, and the renovations to rehabilitate the building will cost $2,500,000. Assuming a 5% discount rate that has a factor of 3.546, what is the after-tax cost after claiming the Rehabilitation Credit available to Chicago Investors, Inc.?a. $4,045,400
b. $3,600,000
c. $3,931,750
d. $4,500,000
Business
1 answer:
zloy xaker [14]2 years ago
8 0

Answer:

correct answer is a. $4,045,400

Explanation:

given data

building cost = $2,000,000

Rehabilitation cost =  $2,500,000

discount rate  = 5%

factor = 3.546

solution

we get here after-tax cost after claiming the Rehabilitation

so first we get here total cost that is = $2,000,000  + $2,500,000

total cost  = $4,500,000

and here tax saving by credit will be

tax saving by credit = $2,500,000 × 20%

here 20% credit is allow for qualify expenditure that is made to rehabilitate

tax saving by credit  = $500,000

and here credit spread for 5 year it mean $100,000 per year

so here Current year credit is = $100,000

and Present value of credit for the years 2-5  = $100,000 × annuity factor

= $100,000 ×  3.546 =  $354,600

so here Present value of credit will be  = $354,600  + $100,000  

Present value of credit = $454,600

and

After tax cost of credit will be as

After tax cost of credit = $4,500,000 - $454,600

After tax cost of credit = $4,045,400

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jeka57 [31]

Answer:

dual mandate.

Explanation:

dual mandate -

It is the practice in which the elected officials serves in more than one elected or public position .

In Britain , this term is also referred to as double jobbing .

In some cases , the dual mandate is prohibited by the law , as in the case of the federal states , because the federal office holders are not allowed to hold state office .

Hence  from the question information , the correct option is dual mandate .

5 0
3 years ago
Evergreen Corporation distributes land with a fair market value of $200,000 to its sole shareholder. Evergreen's tax basis in th
Lady_Fox [76]

Answer:

True

Explanation:

As for calculating the gain or loss on distribution of any asset, in any case the company shall consider the fair market value at the time of distribution, and accordingly, the gain or loss shall be:

Fair market value - Tax basis of such asset.

Here, in the given instance

Fair market value of land = $200,000

Tax basis of land = $50,000

Thus, gain on distribution = $200,000 - $50,000 = $150,000

This will not be different in any case, whether the earnings are positive or negative.

Therefore, the statement is True

4 0
3 years ago
It is necessary for all economic systems to provide people with goods and services and also restrict them from getting as much o
solong [7]

Answer:

The correct answer is: reduce; not as highly valued as others.

Explanation:

All the economic systems must provide people with the goods and services that they want and need. But it is also necessary to limit them from getting as much as they wish.

This is because providing as many goods and services as they want may lead to a reduction in efficiency. Economic efficiency is achieved when resources are allocated in such a way that there is no wastage and resources are allocated to most valued use.

If the economic systems do not restrict the production of goods and services as much as they want it may lead to the production of those goods and services that are not as highly valued as others. This will cause wastage of resources, thus reducing the economic efficiency of the system.

8 0
3 years ago
What is the maximum number of accounts allowed within the chart of accounts in QuickBooks Online Plus?
Olegator [25]

The maximum number of accounts allowed within the chart of accounts in QuickBooks Online Plus is: 250 chart.

<h3>What is chart of accounts in QuickBooks?</h3>

Chart of accounts in QuickBooks  can be defined as the account that are mostly use in tracking every financial statement or information.

The Chart of accounts in QuickBooks  should not be more than 250 chart of account based on the fact that if your  account is higher than 250 in your chart of account this can tend to lead to suspension of the subscription you made.

Therefore the maximum number of accounts allowed within the chart of accounts in QuickBooks Online Plus is: 250 chart.

Learn more about chart of accounts in QuickBooks here:brainly.com/question/14493199

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4 0
1 year ago
Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.
Masteriza [31]

Answer:

a. Determine the amount Stoll should report on its December 31, 2017, balance sheet for its long-term investments in available-for-sale securities.

  • Company B notes $82,300
  • Company C bonds $603,800
  • Company X bonds $120,000
  • Company Z notes $276,000

b. (same as c.)Prepare any necessary December 31, 2017, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.

  • Dr Company B notes 4,800
  •     Cr Unrealized gain on Company B notes 4,800 (= $82,300 - $77,500)

  • Dr Unrealized loss on Company C bonds 38,340 (= $603,800 - $642,140)
  •    Cr Company C bonds 38,340

  • Dr Unrealized loss on Company X bonds 2,100 (= $120,000 - $122,100)
  •    Cr Company X bonds 2,100

  • Dr Company Z notes 8,100
  •     Cr Unrealized gain on Company Z notes 8,100 (= $276,000 - $267,300)

Explanation:

beginning of the year                cost                  fair value

Company A bonds                $534,100             $492,000

Company B notes                  $159,140              $155,000

Company C bonds               $662,400              $642,140

since available for sale assets must be recorded at fair value, we must assume that the company prepared the adjusting entries at the end of the previous year (unrealized gains or losses):

Jan. 29 Sold one-half of the Company B notes for $78,820.

Dr Cash 78,820

    Cr Company B notes 77,500

    Cr Gain on sale of Company B notes 1,320

July 6 Purchased bonds of Company X for $122,100.

Dr Company X bonds AFS 122,100

    Cr Cash 122,100

Nov. 13 Purchased notes of Company Z for $267,300.

Dr Company Z bonds AFS 267,300

    Cr Cash 267,300

Dec. 9 Sold all of the bonds of Company A for $524,800.

Dr Cash 524,800

    Cr Company A notes 492,000

    Cr Gain on sale of Company B notes 32,800

3 0
2 years ago
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