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stellarik [79]
3 years ago
14

Ivan and Olga own a duplex. They collect the rents and make repairs to the property when necessary. That is, they are active par

ticipants in the rental property. During the current year, the duplex has gross rents of $16,000 and total allowable deductions of $31,000.What is the effect of the duplex rental on their taxable income if their AGI is
a) $87000? b)$122000? c) $155000? d)$139000?
Business
1 answer:
Rom4ik [11]3 years ago
4 0

Answer:

A. $155,000

Explanation:

The $25,000 rental real estate deduction is reduced when an individual's adjusted gross income exceeds $100,000. The amount of the reduction is $.50 for every $1 of adjusted gross income in excess of $100,000. Thus, the special rental real estate deduction is not available to taxpayer's whose adjusted gross income exceeds $150,000. Because Ivan and Olga have $155,000 of adjusted gross income, they are not allowed to deduct any of the $15,000 rental loss. The $15,000 loss is suspended as a passive loss and can be deducted in the following year against either passive income or under next year's $25,000 limit.

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Turnbull Co. is considering a project that requires an initial investment of $1,708,000. The firm will raise the $1,708,000 in c
Anna35 [415]

Answer:

11.06%

Explanation:

Calculation to determine What will be the WACC for this project

First step is to calculate the Weight of Debt

Weight of Debt = $750,000 / $1,708,000

Weight of Debt = 0.4391

Second step is to calculate the Weight of Preferred Stock

Weight of Preferred Stock = $78,000 / $1,708,000

Weight of Preferred Stock = 0.0457

Third step is to calculate the Weight of Equity

Weight of Equity = $880,000 / $1,708,000

Weight of Equity = 0.5152

Fourth step is to calculate After Tax Cost of Debt

After Tax Cost of Debt = 11.1% * (1 – 0.40)

After Tax Cost of Debt = 6.66%

Now let calculate WACC using this formula

WACC = (Weight of Debt * After Tax Cost of Debt) + (Weight of Preferred Stock * Cost of Preferred Stock) + (Weight of Equity * Cost of Equity)

Let plug in the formula

WACC = (0.4391 * 0.0666) + (0.0457 * 0.1220) + (0.5152 * 0.1470)

WACC = 0.02924406+0.0055754+0.0757344

WACC =0.1106*100

WACC =11.06%

5 0
2 years ago
In Lean/JIT systems the burden of ensuring quality of production inputs from vendors shifts from the _____________ to the ______
irina [24]

Answer:

Buyer/seller

Explanation:

In the case of lean system it focused on the customer side while on the other hand the JIT i.e. Just in time focused on the manufacturing process i.e. efficiency

So in the case of lean or JIT system the burden for ensuring the production quality from vendor shifts is from the buyer to the seller

Therefore the above represents the answer

6 0
2 years ago
The Maroon & Orange Gym, Inc., uses the accrual method of accounting. The corporation sells memberships that entitle the mem
SashulF [63]

Answer:

c. $180 in 2019

Explanation:

The company uses the accrual method of accounting. Under the method, revenues are reported on the income statement when they are earned, regardless of when the money is actually received or paid.

On July 1, 2017, the company sold a one-year membership and a two-year membership. In 2017, The Maroon & Orange Gym, Inc. has provided service for 6 months of each contracts.

Gross income of one-year membership in 2017 = $40 x 6 = $240

Gross income of one-year membership in 2017 = $30 x 6 = $180

Total income = $240 + $180 = $420

In 2018, the company continued to provide service for 6 months remaining of one-year membership and 12 months remaining of two-year membership.

Gross income of one-year membership in 2018 = $40 x 6 = $240

Gross income of one-year membership in 2018 = $30 x 12= $360

Total income = $240 + $360 = $600

In 2019, the company completed providing service for 6 months remaining of two-year membership.

Gross income in 2019 = $30 x 6= $180

4 0
2 years ago
Its best if you share details of a personal appointment when you need time off work. True False
Reika [66]
I would say false because 'personal' is in the name. Your work doesn't really need to know the exact details (might depend on the business tho). 
7 0
3 years ago
Supporters of rent control say that it _____ the price of renting an apartment. raises lowers does not change
denis23 [38]

Answer:

The answer is lowers.

Explanation:

Supporters of rent control say that it <u>LOWERS</u> the price of renting an apartment.

Rent control is an administration program that puts a limit on the sum that a landowner can charge for renting a home or for renewing lease  

Rent control laws are typically established by regions and the subtleties differ broadly. All are planned to continue living costs reasonable for lower-salary occupants.

Rent control laws mostly limit the amount a landlord can increase rents on existing tenants.  Therefore Rent control is controversial. In fact, 37 states have laws that forbid local governments from enacting such measures.

6 0
3 years ago
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