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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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Jeri and Knute are members of Lighthouse Tours LLC, a limited liability company. With respect to Lighthouse Tours’s liability, a
slava [35]

Answer:

Personal liability

Explanation:

Jeri and Knute are shareholders in lighthouse tours LLC. As lighthouse tours LLC is a limited liability company, Jeri and Knute enjoy limited liability.

Legally, lighthouses LLC is independent of its shareholders. It has the right to own assets and incur liabilities. Should the company get to the dissolution stage, its assets will be used to settle its obligations. If the assets of the company are not sufficient, the shareholders' private properties cannot be used to pay the debts.  Jeri and Knute will be liable only to the extent of capital contribution.  

8 0
3 years ago
Ben is a successful salesperson with Victor International Inc.He sells capital goods to large industries.He is expected to give
Alex_Xolod [135]

Answer:

D) Situational Stress

Explanation:

It is a short term for of stress that occurs in temporary situations. It is a short term stress when the problem/concern has a solution and then the stress goes away

7 0
2 years ago
The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate
Bezzdna [24]

Answer:

Option B is the correct answer,1.05

Explanation:

Present value index can be computed using the below formula:

present value index=present value of cash inflows/initial amount invested

present value of cash inflows=annual net cash flow*present value factor of annuity

annual net cash flow=$93,750

present value factor of annuity=4.212

present value of cash inflows=$93,750*4.212=$394,875.00  

initial amount invested is $375,000

present value index=$394,875.00/$375,000 =1.053

The present value index of this project is approximately 1.05,which is the option B in the multiple choices

3 0
3 years ago
Benjamin, an Australian businessman, is assigned to represent his firm and manage a project in Japan. He has been learning about
Lorico [155]

Answer:

The answer is: A) cognitive and psychological dimensions of a global mind set

Explanation:

Global mindset can be defined as the ability to adjust to different cultural environments (e.g. traditions, norms, ways of doing business, etc.) and being able to deal with people from other backgrounds and styles.

In simple words, global mindset is the ability to think globally, the whole world is your home.

The main advantage of thinking globally is that you can develop better  relationships and communications with different customers and world partners.

The best possible example is how the Coca Cola Company works.

8 0
3 years ago
Back Bay Company is a price−taker and uses target pricing. Refer to the following​ information:Production volume602,000units per
kirill115 [55]

Answer: $30.10 per unit

Explanation:

Given that,

Production volume = 602,000 units per year

Market price = $34 per unit

Desired operating income = 17​% of total assets

Total assets = $13,800,000

Total income = 17% of Total assets

                      = 0.17 × $13,800,000

                      = $2,346,000

Total sales = Market price × Production volume

                  = $34 per unit × 602,000 units

                  = $20,468,000

Target full product cost in total for the year:

= Total sales - Total income

= $20,468,000 - $2,346,000

= $18,122,000

Target full product cost per​ unit = \frac{Target\ full\ product\ cost}{Production\ volume}

                                                      = \frac{18,122,000}{602,000}

                                                      = $30.10 per unit

4 0
3 years ago
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