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-Dominant- [34]
3 years ago
14

Mr. Slake sold 1,580 shares of publicly traded DDL stock (tax basis $49,240) for $40,000 cash on February 13. He paid $43,000 ca

sh to purchase 1,600 DDL shares on March 2. Compute Mr. Slake's loss recognized on the February 13 sale and determine his tax basis in the 1,600 shares. Multiple Choice No loss recognized; $52,240 basis No loss recognized; $40,000 basis $9,240 loss recognized; $43,000 basis No loss recognized; $49,240 basis
Business
1 answer:
garik1379 [7]3 years ago
5 0

Answer:

$9,240 loss recognized

$43,000 basis

Explanation:

Tax basis of share purchase is the cost of share together with any tax related to this purchase.

Mr. Slake's loss recognized on the February 13 sale is $9,240 = total cost of 1,580 share purchased in the past - total amount collected from sales of these share =  $49,240 - $40,000 = $9,240

His tax basis in purchase of 1,600 shares on Mar 2 is  $43,000, the total cost he paid to acquire 1,600 shares

You might be interested in
Marv Company's direct labor costs for manufacturing its only product were as follows for October: Standard direct labor hours pe
Sonbull [250]

Answer:

$30,000 unfavorable.

Explanation:

Calculation for what The direct labor efficiency variance for October was

Using this formula

Direct labor efficiency variance = (Standard hours for actual production - Actual hours) × Standard rate per hour

Let plug in the formula

Direct labor efficiency variance=(5,000 × 2 - $207,000 ÷ $18.00) × $20

Direct labor efficiency variance= (10000 - $11,500) × $20

Direct labor efficiency variance= $1,500 × $20

Direct labor efficiency variance= $30,000 unfavorable

Therefore The direct labor efficiency variance for October was $30,000 unfavorable

3 0
2 years ago
If you are willing to purchase a house for $500,000 and you purchase the house for $500,000, this transaction will generate:
wel

Answer:

c. $0 worth of buyer surplus and unknown amount of seller surplus

Explanation:

Given that

Selling price of house = $500,000

The purchase value of house =$500,000

By considering the above information,  the purchase and sales value are the same which reflects that the buyer surplus is zero and there is no definite amount or unknown amount of seller surplus as the data is not given.

Hence, the correct option is c.  

4 0
3 years ago
Let’s say your friend wants to invest all of her saved money into ONE individual stock. Is this a good idea? Why or why not?
OverLord2011 [107]

This is not a good idea as stocks are volatile.

Explanation:

One must never invest a lot of money in only one stock as the stocks are wont to change over time and gain or lose value.

If one wants a long term investment with at least some amount of safety they must be investing in stocks that grow consistently and then to break up the capital in small chunks and then invest them.

All of these can be invested in different shares in the market and then the shares would be more safe.

Even if one or two shares fall the others will be safe.

3 0
3 years ago
Jerome Jones delivers pizza for Papa’s Pizza. He earns $7.80 an hour plus time-and-a-half for every hour over 40. Last week he w
Serga [27]

His net pay is $328.16.

The first step is to calculate Jerome’s salary.

Regular time - 40 x $7.80 = $312

Overtime - 5 x $7.80 x 1.5 = $58.50

Total Salary = $312 + 58.50 = $370.50

The next step is to calculate the deductions:

Social security = 370.50 x .062 = $22.97

Medicare = 370.50 x .0145 = $5.37

Federal Income Tax = $14

Total Deductions = 22.97 + 5.37 + 14 = $42.34

$370.50 - $42.34 = $328.16

8 0
3 years ago
If your uncle borrows $56,000 from the bank at 10 percent interest over the eight-year life of the loan. Use Appendix D for an a
Elan Coil [88]

Answer:

a. Annually equal instalment = Principal x rate x ( (1+rate)n / (1+rate)n -1 )

Explanation:

Accrding to the following formula, we calculate the anually equal instalment.

So, instalment = 56000 x 0.10 x ( (1.10)8 / (1.10)8 -1) = $10496.86498 ~ $10496.86

7 0
3 years ago
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