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saveliy_v [14]
3 years ago
12

This year, Barney and Betty sold their home (sales price $660,000; cost $180,000). All closing costs were paid by the buyer. Bar

ney and Betty owned and lived in their home for 18 months. Assuming no unusual or hardship circumstances apply, how much of the gain is included in gross income
Business
1 answer:
Contact [7]3 years ago
8 0

Answer:

The whole of the $480,000 gained

Explanation:

Barney and Betty are selling their home for $660,000 and the cost incurred is $180,000. Their net profit is 660,000-180,000= $480,000.

However Barney and Beth have lived in the house for 18 months, they have not stated for up to two years, so they do not meet the two year ownership and use test.

All of the gain on the sale will be included as gross income. That is the whole $480,000 gained.

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Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,050. The first bond is issued at a deep di
I am Lyosha [343]

Answer:

Explanation:

a)

The YTM of the bond at par value is equals to its coupon rate, 8.75%. Other things being equal, this 4% coupon rate bond will be more eye-catching as the coupon rate is lower than the current market yields, and its price is far below the call price. So, if yields drop, capital gains on the bond will not be restricted by the call price.

b)

If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.

c)

Implicit call protection is offered in the sense that any likely fall in yields would not be nearly enough to make the firm consider calling the bond. In this sense, the call feature is almost irrelevant

3 0
3 years ago
All of the following options are good tips for borrowing money EXCEPT...
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I would say B. Quick cash loans. Interest rates are very high & not a good idea in borrowing money. They are designed for people who have poor credit ratings & have no other means to borrow money.
5 0
3 years ago
Suppose that annual income from a rental property is expected to start at ​$ per year and decrease at a uniform amount of ​$ eac
Aloiza [94]

Answer and Explanation:

Year    Cash Inflow      Discounting factor 9%, 12 Years   Present Value

0        -$8,200                         1                                 -$8,200.00

1          $1,350                               0.8929                               $1,205.42

2          $1,295                              0.7972                               $1,032.37

3          $1,240                               0.7118                                $882.63

4          $1,185                                0.6355                              $753.07

5           $1,130                               0.5674                               $641.16

6           $1,075                               0.5066                              $544.60

7            $1,020                              0.4523                              $461.35

8            $965                                0.4039                              $389.76

9             $910                                 0.3606                             $328.15

10            $855                                0.322                               $275.31

11            $800                                0.2875                              $230.00

12            $745                                 0.2567                            $191.24

Net Present Value                                                                  -$1,264.95

Since the net presnet value comes in negative so it is not beneficial for a company as it is not able to cover the initial investment

6 0
3 years ago
Craigmont company's direct materials costs are $4,900,000, its direct labor costs total $8,710,000, and its factory overhead cos
goldenfox [79]

Craigmont company's direct materials costs are $4,900,000, its direct labor costs total $8,710,000, and its factory overhead costs total $6,710,000. its prime costs total:_Prime Cost = direct material cost + Direct Labor cost

= $ 4900000 + $ 8710000

= $ 13610000

A high price is the entire direct price of production, such as uncooked materials and exertions. indirect charges, along with utilities, supervisor salaries, and delivery costs, are not blanketed in top charges. corporations want to calculate the prime value of each product manufactured to ensure they are generating earnings.

Industry averages propose top charges need to be between fifty five% and 60%. Years in the past, that range might have been as high as sixty five%. however as the costs of a lease, coverage, and items have risen, it is grown to be extra vital to hold that percent quite tight within that variety.

Learn more about prime cost here:

brainly.com/question/26058632

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7 0
2 years ago
Even though Kelly did not actively post the leaked information on social media, Don and the rest of the management team decided
yuradex [85]

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2.In the case of Serena’s social media complaints about the company, Don says the key is that, though her comments did not put the company in a good light, there are important lines she did not cross. ________, racial bias, and foul language are the three examples he cites that would beinfringements on company social media policies.

a.Hate speech

3.What is Don’s response when Kelly tells him that the assistant manager labelled social media training a “low priority”?

a.He makes a note to make sure it’ll never happen again.

4.When Kelly continues to argue against the decision to let her go, Don tells her that he is sorry to see her go and that he will give her the best reference he can under the circumstances. Here, what is his strategy for managing this difficult confrontation?

a.showing empathy for the employee

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a.responsibility

Explanation:

6 0
3 years ago
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