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vekshin1
3 years ago
14

This year, Barney and Betty sold their home (sales price $750,000; cost $200,000). 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?
a. $550,000
b. $300,000
c. $250,000
d. $50,000
e. None
Business
2 answers:
lutik1710 [3]3 years ago
4 0

Answer:

a. 550,000

Explanation:

The gain on the asset is calculated by the sales proceeds minus the original cost of the asset.

In this question the home' initial cost is $200,000 and it is sold on $750,000. In absence of any unusual or hardship circumstances, the direct gains is $550,000 ( $750,000 - $200,000) as all the closing costs are paid by the buyer, so, Barney ans Betty should include the whole gain of $550,000 in the gross income.

Rainbow [258]3 years ago
3 0

Answer:

The correct answer is option (a) $550,000

Explanation:

Given Data;

Sales price =$750,000

Cost price =$200,000

The profit is calculated as;

Profit = sales price - cost price

          = $750,000 - $200,000

          =$550,000

Assuming no unusual or hardship circumstances apply, all the profit will be included in the gross income.

Therefore, $550,000 is included in the gross income.

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Goodwill represents the excess of the implied value of an acquired company over the
Paul [167]

Answer: Option A

                                           

Explanation: In simple words, goodwill refers to the additional value that an organisation have from its identifiable assets due to its operations over a period of time.

In other words, it can be defined as an intangible asset which an organisation creates over a period of time while establishing the brand image. These assets are not depreciated but are tested for impairment every year. For example brands like apple, Reebok and McDonald have high goodwill in the market which attracts customers towards them

Thus, from the above we can conclude that the correct option is A.

6 0
3 years ago
Record the entry to close the income summary assuming the partners agree to use plan c and net income is $460,500
slava [35]

The entry is record in book as

Date Particular                L.F.     Dr. Amt.        Cr. Amt.

Income summary a/c             $460,500  

To Mo a/c                                          $69,300

To Lu a/c                                          $269,500

To Barb a/c                                          $431,200

What is net income?

The total amount of firm profit after deducting all taxes, costs, and interest is referred to as "net income."

Particulars                 Mo           Lu                 Barb

Capital invested        $69,300    $269,500  $431,200

Profit sharing ratio 20/100   40/100         40/100

Profit ($460,500)         92100    184200 184200

As a result,  Mo is  92100;  Lu is 184200; Barb is 184200 as profit.

Learn more about on net income, here:

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4 0
1 year ago
A politician attempts to gain support for her campaign for city mayor by releasing a poll showing that almost 70 percent of resi
Dafna11 [192]

Answer: consensus

                                   

Explanation: In simple words, it refers to the psychological phenomenon which states that the likelihood that an individual is going to perform an activity increases when he or she thinks that their potential act aligns with the willingness of others that are related to the outcomes.

In the given case, the politician is trying to persuade that majority of the voters are in his favor. This idea will generate a perception that majority are in his favor so there must be something positive in him.

Hence we can conclude that he is using consensus.

8 0
3 years ago
Shareholders of mutual funds have all of the following rights EXCEPT: A) the right to vote on the selection of specific securiti
trapecia [35]

Answer:

you do not obtain the right to vote on the selection of specific securities for the portfolio

Explanation:

As a shareholder of a mutual fund you have many rights available such as voting proxies, receiving semiannual reports, and voting rights. Unfortunately, you do not obtain the right to vote on the selection of specific securities for the portfolio. The only individual that can make this decision is the fund manager. This individual is the one that analyzes different securities and chooses the ones that will round out and diversify the mutual fund nicely while at the same time maximizing ROI potential.

5 0
3 years ago
Deitz Corporation is projecting a cash balance of $32,400 in its December 31, 2019, balance sheet. Deitz's schedule of expected
Anna71 [15]

Answer:

<u>Dietz corporation cash budget for the first quarter </u>

Total Receipts :

Collections from Customers                           $199,800

Receipts from Sale of Equipment                      $3,240

                                                                        $203,040

Total Payments :

Direct materials                                                 $46,440

Direct labor                                                        $75,600

Manufacturing overhead                                  $37,800

Selling and administrative expenses               $48,600

Purchase of securities                                        $15,120

                                                                         $223,560

Net Receipts/(Payments)                                 ($20,520)

Opening Balance                                              $32,400

Closing Balance                                                  $11,880

Required Balance                                              $27,000

Loan (Shortfall)                                                    $15,120

Explanation:

A cash Budget shows the future estimate of future cash incomes and cash expenditures.

3 0
3 years ago
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