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serious [3.7K]
3 years ago
15

Bill and Brenda bought their home for $150,000. They made $50,000 of improvements. They sold the home for $450,000 and paid $30,

000 in selling expenses, including the broker's commission. On what amount will they pay capital gains tax?
Business
2 answers:
adell [148]3 years ago
6 0

Answer:

Explanation:

Capital gains tax is a tax that is levied on the profit made from the sale of a non-inventory asset. The most common sources of capital gains are through the sale of bonds, precious metals, stocks, property, and real estate.

The IRS typically allows an exclusion of up to: $250,000 of capital gains on real estate for a single person and $500,000 of capital gains on real estate for a married couple who are filing jointly.

To find the amount on which they pay capital gains:

The adjusted basis is $200,000 which is:

Initial cost of buying the house for $150,000, plus cost of improvements $50,000.

The sales price of $450,000 minus the selling expenses which cost $30,000.

The amount realized is therefore:

$450,000 - $30,000 = $420,000.

Note: They will receive an exclusion of $500,000 because they are filing jointly. So Bill and Brenda will not pay any capital gains tax.

Blababa [14]3 years ago
6 0

Answer:

Zero amount

Explanation:

Capital gain tax is a tax paid on the profit of a non- inventory asset such as stock bond and real estate.

Bill and Brenda will be taxed zero Capital gain Because the property they are selling out is theirs and as such the value can't be really determined, so it will be hard determining profit made in the sale if the product not to talk of calculating for capital gain.

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Rama09 [41]

Answer:

B. inform her divisional merchandiser manager of the proposal

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3 years ago
Preparation of a statement of cash flows involves five steps:
adelina 88 [10]

Answer:

Preparation of a statement of cash flows involves five steps

1. Compute net cash provided or used by operating activities.

This is the section where all the cash flow that belongs to the operating section are been added and subtracted according to the inflow and outflow of the transaction.

2. Compute net cash provided or used by investing activities.

This is the section where all the cash flow that belongs to the investing section are been added and subtracted according to the inflow and outflow of the transaction.

3. Compute net cash provided or used by financing activities.

This is the section where all the cash flow that belongs to the financing section are been added and subtracted according to the inflow and outflow of the transaction.

4. Compute the net increase or decrease in cash

This is the section where the cash-flow from operating, investing and financing activities is  been balanced.

5. Report the beginning and ending cash balances and prove that the ending cash balance is explained by net cash flows.

After the cash-flow from operating, investing and financing activities is  been calculated, Then, this section is also computed to derive the Closing/Ending cash balance

4 0
3 years ago
The total value of all goods and services produced annually in the united states is called
monitta
The GROSS NATIONAL PRODUCT(GNP)
its the market value of all the products and services produced in a given year
3 0
3 years ago
____________ are sometimes called brand identities, are trademarkable devices that serve to identify and differentiate the brand
Tatiana [17]

Answer:

Brand Elements.

Explanation:

Based on the information provided within the question it can be said that the term being described are called Brand Elements. Like mentioned in the question this refers to different trademarkable elements that are used to express or represent a specific brand and set it apart from the rest of the market.

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3 years ago
Valvano Corporation uses a job-order costing system with a single, plantwide, predetermined overhead rate based on machine-hours
alukav5142 [94]

Answer:

The estimated total manufacturing overhead is closest to $550,000

Explanation:

Total manufacturing overhead = variable + fixed overhead absorbed

Fixed overhead absorbed = Overhead absorption rate × machine hour

Overhead absorption rate = Estimated overhead/Estimated machine hours

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                              = 8.8  per machine hour

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Absorbed variable overhead= $2.20  × 50,000= $110000

Total manufacturing overhead = $440,000+ 110000 =$550,000

The estimated total manufacturing overhead is closest to $550,000

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