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Neko [114]
4 years ago
8

Bob and April own a house at the beach. The house was rented to unrelated parties for eight weeks during the year. April and the

children used the house 12 days for their vacation during the year. After properly dividing the expenses between rental and personal use, it was determined that a loss was incurred as follows:
Gross rental income $4,000
Less: Mortgage interest and property taxes $3,500
Other allocated expenses 2,000 (5,500)
Net rental loss ($1,500)
1. What is the correct treatment of the rental income and expenses on Bob and April’s joint income tax return for the current year assuming the IRS approach is used if applicable?
A. A $1,500 loss should be reported.
B. Since the house was used less than 50% personally by Bob and April, all expenses allocated to personal use may be deducted.
C. Since the house was used more than 10 days personally by Bob and April, the rental expenses (other than mortgage interest and property taxes) are limited to the gross rental income in excess of deductions for interest and taxes allocated to the rental use.
D. Only the mortgage interest and property taxes should be deducted.
2. Olaf was injured in an automobile accident and received $25,000 for his physical injury, $50,000 for his loss of income, and $10,000 punitive damages. As a result of the award, the amount Olaf must include in gross income is:
a. $60,000
b. $10,000
c. $50,000
d. $85,000
Business
1 answer:
Ivahew [28]4 years ago
4 0

Answer: The answer is provided below

Explanation:

Gross rental income = 4,000

Less: mortgage interest = (3500)

Less: Allocated Expense = (2000)

= 4000 - 5500

Net loss = (1500)

Since the house has been used for more than 10 days by April and Bob, the rental expense will be limited to the gross rental income that are in excess of deductions for the interest and taxes that are allocated to the rental use.

Therefore, option C is correct

2. Amount of only 10000 should be included in gross total income as the punitive damage recived.

Therefore, option B is correct.

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Your assistant wants to use secondary data exclusively for the current marketing research project. You advise him that the use o
Rudik [331]

Answer:

D) It is generally more expensive to obtain than primary data.

Explanation:

A) It may not exist.

Problem. Primary data may not yet be available due to its sensitivity of the primary data.

B) It may not be relevant

Problem. Published data may not be applicable to your region. For example published data for Asia might not be applicable to Africa.

C) It may not be impartial.

Problem. Primary data used to create the secondary data might not treated all rivals equally.

D) It is generally more expensive to obtain than primary data.

Not a problem. Secondary data is not expensive as compared to primary data.

E) It may not be current.

Problem. Primary data collected might be out of date thus can not be used recent decisions as many things would have changed.

7 0
3 years ago
George Jefferson established a trust fund that provides $170,500 in scholarships each year for worthy students. The trust fund e
Aleonysh [2.5K]

The returns of a capital amount to a compensation rate for depositing the money, to calculate these returns an interest rate is used by which the deposited capital is multiplied, in this case the rate is 4%.

As the money distributed is only the product of interest, then that money is the result of multiplying the capital by the interest rate, to obtain how much money Mr. Jefferson contributed, the reverse process will have to be done.

Answers

let <em>C</em> be the capital, then :

C\times4 \%  = 170500\\C\times\frac{4}{100}= 170500\\C=170500\times\frac{100}{4}\\C=4262500

The capital contributed by Mr. Jefferson was <em>$4,262,500</em>

3 0
4 years ago
Read 2 more answers
Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $350 and has a unit cont
grandymaker [24]

Answer:

Break-even point in composite units = 811 units

Explanation:

Number of modal;

5 Youth models

9 Adult models

6 Recreational models

Annual fixed costs total = $6,550,000

Find:

Break-even point in composite units

Computation:

Mixed contribution margin = 5[130] + 9[475] + 6[525]

Mixed contribution margin = 650 + 4275 + 3150

Mixed contribution margin = $8075

Break-even point in composite units = Annual fixed costs total / Mixed contribution margin

Break-even point in composite units = 6,550,000 / 8075

Break-even point in composite units = 811 units

3 0
3 years ago
Which would be an example of sustainable development? a. Current use of fossil fuels in the U.S. b. Heap-leach extraction of gol
Setler [38]

Answer:

The correct answer is letter "D": Development of brownfields in urban areas.

Explanation:

In urban planning, sustainable development refers to continuous activities that can be performed during extended periods of time. They are the result of repeated patterns of individuals who, sometimes unconsciously, provoke more and more individuals to repeat their actions.

Under such a scenario, <em>the development of brownfields in urban areas is the result of building more department complexes in the cities because of the increasing need for renting and selling houses as a result of the increasing population growth.</em>

5 0
4 years ago
Read 2 more answers
Elizabeth Kennedy sells beauty supplies. Her annual demand for a particular skin sparkle is 17,000 units. The cost of placing an
elena-s [515]

Answer:

The minimum cost will be "$214085".

Explanation:

D = 1700 units \\\\S =  \$ 50 \\\\H=  20%\\

i) When quantity = 1-1500,  price = $ 12.50 , and holding price is $12.50 * 20 %= $2.50.

ii) When quantity = 1501 -10,000,  price = $ 12.45 , and holding price is $12.45 * 20 %= $2.49.

iii) When quantity = 10,0001- and more,  price = $ 12.40 , and holding price is $12.40 * 20 %= $2.48.

EOQ= \sqrt{\frac{2DS}{H}} \\\\EOQ1= \sqrt{\frac{2\times 17000\times 50}{2.50}} \\\\EOQ1=824.62 \ \ \ or \ \ \ 825\\

EOQ2= \sqrt{\frac{2\times 17000\times 50}{2.49}} \\\\EOQ1=826.2T \ \ \ or \ \ \ 826\\

EOQ3= \sqrt{\frac{2\times 17000\times 50}{2.48}} \\\\EOQ3=827.93 \ \ \ or \ \ \ 828\\

know we should calculate the total cost of EOQ1 and break ever points (1501 to 10,000)units

total \ cost = odering \ cost + holding \ cost + \ Annual \ product \ cost\\\\total_c  = \frac{D}{Q} \times S +  \frac{Q}{2} \times H + (p \times D) \\\\T_c  = \frac{17000}{825} \times 50+  \frac{825}{2} \times 2.50 + (12.50 \times 17000)\\\\T_c = 1030 .30 +1031.25+212500\\\\T_c =$ 214561.55\\\\

T_c  = \frac{17000}{1501} \times 50+  \frac{1501}{2} \times 2.49 + (12.45 \times 17000)\\\\T_c = 566.28 +1868.74+211650\\\\T_c =$ 214085.02 \ \ \ or \ \ \  $ 214085\\\\

T_c  = \frac{17000}{10001} \times 50+  \frac{10001}{2} \times 2.48 + (12.40 \times 17000)\\\\T_c = 84.99+ 12401.24+210800\\\\T_c =$ 223286.23 \\

The total cost is less then 15001. So, optimal order quantity is 1501, that's why cost is = $214085.

5 0
3 years ago
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