Answer: Gwen should report a $3,000 long-term capital gain in her income tax return.
In this question the price paid by Gwen’s mother for the shares is irrelevant because of her death.
The stock’s fair market value ($20) when Gwen inherited the shares (21st October 2015) is Gwen stepped up value.
Gwen’s gain from selling the shares is:
![Gain / (Loss) = (Selling Price per share - Stepped up value per share) * Number of shares](https://tex.z-dn.net/?f=Gain%20%2F%20%28Loss%29%20%3D%20%28Selling%20Price%20per%20share%20-%20Stepped%20up%20value%20per%20share%29%20%2A%20Number%20of%20shares)
![Gain = (50 - 20) *100](https://tex.z-dn.net/?f=Gain%20%3D%20%2850%20-%2020%29%20%2A100)
![Gain = $3,000](https://tex.z-dn.net/?f=Gain%20%3D%20%243%2C000)
Gwen inherited the shares on (21st October 2015) and held the shares until (3rd july 2017), so she held the shares for more than one year after inheriting it. So, she will report a long-term capital gain on her income tax return.
Answer: Option B
<h3>
Explanation: This could be calculated as follows :-</h3><h3>
![Interest\:expense\:for\:nov\:30\:2018=\:\$288,000\times \frac{12\%}{12}](https://tex.z-dn.net/?f=Interest%5C%3Aexpense%5C%3Afor%5C%3Anov%5C%3A30%5C%3A2018%3D%5C%3A%5C%24288%2C000%5Ctimes%20%5Cfrac%7B12%5C%25%7D%7B12%7D)
</h3><h3> = $2880</h3><h3>Principal repayment for the month = $25,588 - $2880</h3><h3> = $22,708</h3><h3>similarly:-</h3><h3>
![Interest\:expense\:for\:dec\:31\:2018=\:(\$288000-\$22,708)\times \frac{12\%}{12} =\:$2653](https://tex.z-dn.net/?f=Interest%5C%3Aexpense%5C%3Afor%5C%3Adec%5C%3A31%5C%3A2018%3D%5C%3A%28%5C%24288000-%5C%2422%2C708%29%5Ctimes%20%5Cfrac%7B12%5C%25%7D%7B12%7D%20%3D%5C%3A%242653)
</h3>
therefore,
total interest expense = 2880 +2653 =$5,533
Answer: the quantity demanded of physicals decreases and the quantity of physicals doctors want to give increases.
Explanation:
Since the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price floor of $250 per physical, there will be a reduction in the quantity demanded of physicals decreases and the quantity of physicals doctors want to give increases.
This is because since the price is higher than the equilibrium price, the consumers will reduce their demand for the product while the suppliers will e willing to supply more in order to make more profit.
Answer:
(C) Product X = $880; Product Y = $2,240
Explanation:
The applied overhead will be calculate by the product of the cost diver and the overhead rate:
<u>Cost driver for each product:</u>
Product X 3MH and 1LH
Product Y 4MH and 8LH
<u />
<u>Overhead rate: </u>
240 per machine hour
and 160 per labor hour
Product X 3MH x $240 + 1LH x $160 = 880
Product Y 4MH x $240 + 8LH x $160 = 2,240