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Marizza181 [45]
3 years ago
7

On July 1 of year 1, Elaine purchased a new home for $665,000. At the time of the purchase, it was estimated that the property t

ax bill on the home for the year would be $13,300 ($665,000 × 2%). On the settlement statement, Elaine was charged $6,650 for the year in property taxes and the seller was charged $6,650. On December 31, year 1 Elaine discovered that the real property taxes on the home for the year were actually $14,300. Elaine wrote a $14,300 check to the local government to pay the taxes for that calendar year (Elaine was liable for the taxes because she owned the property when they became due). What amount of real property taxes is Elaine allowed to deduct for year 1? (Assume not married filing separately.)
Business
1 answer:
tamaranim1 [39]3 years ago
5 0

Answer:

The amount of real property taxes that Elaine is allowed to deduct for year 1 is $7150.

Explanation:

Elaine started living in the new home from July, which means that she has been living there for 6 months ( as per current date). But at the time when she purchased the house the total amount of property tax was $13,300 and now it is $14,300.

Since last 6 months she has been living in that home, and current property tax is $14,300 , that means now she is allowed a 50% deduction on the property taxes ,

$14,300 / 2 = $7150

Therefore Elaine is allowed $7150 as amount of deduction on property tax.

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3 years ago
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Which of the following comes after a period of recession in the business cycle? A. Stagflation B. A drought C. A boom D. Recover
morpeh [17]
<h3>Hello there!</h3>

Your question asks what comes after the period of recession in the business cycle.

<h3>Answer: D). Recovery</h3>

The reason why answer choice "D). Recovery" is correct because this comes after the period of recession in the business cycle.

Recession is like a "slow down" in the activity of a business. Which means that they aren't receiving any income, GDP, investments, and etc. This would cause a business to decrease while a lot of expenses that the business is getting are increasing. By expensive, I mean the cost to keep the business running and things of that sort.

Businesses go through a time of recession; therefore, they need to "recover" from that. And that's why recovery is the next stage. A business must recover from the "recession" period if they want to keep the business up and running. If the business doesn't recover, then the business will fail.

Once the business can recover from the recession period, then the business can succeed in their plans and execute them, while seeing the profits that they expected to make.

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7 0
3 years ago
Which of the following bonds would have the lowest interest rate? All of the bonds have 10 years to maturity
Rashid [163]

Answer:

C. Mortgage bond rated AAA is the correct answer.

Explanation:

4 0
3 years ago
On January 1, 2017, Sheridan Company had a balance of $417,000 of goodwill on its balance sheet that resulted from the purchase
Thepotemich [5.8K]

Answer:

patent      301,350 debit

       cash                 301,350 credit

franchise 633,600 debit

        cash               633,600 credit

development expense   189,000 debit

         cash                                    189,000 credit

year-end adjustment:

amortization expense   50,225 debit

         patent                                  50,225 credit

amortization expense   31,680‬ debit

         patent                                  31,680‬ credit

Explanation:

The patent and franchise will be activate as there is a certain possibility to produce positive cashflow in the future.

They will be adjusted at year-end for amortization:

301,350 / 6 = 50,225 amortization on patent

633,600 / 10 = 63,360 amortization on franchise

As it was concede on July 1st then, we will do half-year

63,360 / 2 = 31,680‬

The development cost will be treated as expense as there is no precise information that can determined the development cost which yield a positive outcome.

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