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inna [77]
3 years ago
13

Lisa sells business property with an adjusted basis of $130,000 to her son, Alfred, for the fair market value of $100,000.

Business
1 answer:
Sphinxa [80]3 years ago
8 0

Answer:

a. The realized loss of Liza’s is $30000 (it is not recognized loss).

b.1    Alfred recognized gain is $8000 and realized gain is $38000.

b.2    Alfred recognizes loss of $20000.

Explanation:

a. Explanation

The sell of business property to his son at $100000 which has the market value $130000. Since Lisa incurring a loss of $30000 is considered as a realized loss. This loss can not be considered as the recognized loss because section 267 explains that sell or exchange of property between related parties is not considered as recognized.

b.1 Explanation

the recognized gain can be determined by subtracting the previously disallowed loss of $30000 from $38000 gain. However, the realized gain ($38000) can be determined by subtracting $100000 from $138000.  

b.2 Explanation

The recognized loss of $20000 can be calculated by subtracting the $100000 from $ 80000.

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Answer:

i=4.84%

Explanation:

the key to answer this question, is to remember the model of return for a perpeuity dividend calculation:

Value=\frac{1}{i-k}

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k=3.4/91

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and solving i for the previous formula:

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8 0
3 years ago
The impact of war and terrorism on U.S. business is that
N76 [4]

Answer:

A) fewer jobs will be created in the United States.

B) companies have increased organizational costs, including insurance costs.

C) there is less global trade.

Explanation:

When war and terrorism run rampant, there are a lot of economic sectors that would experience an increase in demand. Example of this would be tourism  And hospitality industry. Nobody really want to have a vacation during wars. So this will made companies in this industry forced to cut off a lot of their employees.

During war, there are also a threat of attacks to the countries that might destroyed a lot of properties owned by the companies. This is why the insurance costs tend to be increased.

War and terrorism tend to resulted in several alliances between different countries. This also could make relationships between countries that previously act as trading partners became strained.

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Pepper Company provided the incomplete financial statements shown below as well as the following additional information: 1. All
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The missing amounts on the company's financial statements include the current asset of $880000, quick asset is $400000 and an inventory of $480000.

<h3>How to calculate the asset?</h3>

Based on the information given, it should be noted that the current assets will be:

= Current liability × Current ratio

= $320000 × 2.75

= $880000

The quick assets will be:

= $320000 × 1.25

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Learn more about financial statements on:

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2 years ago
Keynesian economists believe that the economy needs to be influenced in order to correct itself from the effects of unemployment
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Answer: fiscal policy

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Fiscal policy simply means when the revenue and expenditure of the government is used to influence the economy of a particular country.

Keynesian economists believe that the economy needs to be influenced in order to correct itself from the effects of unemployment and inflation. This can be done through fiscal policies. According to the Keynesians, the demand from consumers has an effect on the aggregate expenditure.

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3 years ago
on a timeline, a milestone 14 years in the future will be to the ____ of a milestone 8 years in the future and to the ____ of a
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Answer:

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