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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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In 2018, Usher Sports Shop had cash flows from investing activities of ($2,150,000) and cash flows from financing activities of
marissa [1.9K]

Answer:

Usher Sports Shop's cash flow from operations for 2018: $5,414,000

Explanation:

Cash at the end of the year = Cash at the beginning of the year + Cash flows from investing activities + Cash flows from financing activities + Cash flows from operating activities

Therefore:

Cash flows from operating activities = Cash at the beginning of the year + Cash flows from investing activities + Cash flows from financing activities - Cash at the end of the year

Cash flows from investing activities of ($2,150,000) <0 and cash flows from financing activities of ($3,219,000) <0.

Cash flows from operating activities = -$980,000 + $2,150,000 + $3,219,000 + $1,025,000 = $5,414,000

3 0
3 years ago
What problem will result from even slightly higher global temperatures?
likoan [24]

The problems that may arise if there is a slight higher global temperature are the following;

-          Increasing of sea level due to the melting of ice caps

-          Presence of alteration in ecosystem in which is responsible of balancing the environment in the earth that we live in.

6 0
3 years ago
Arriving at a cost structure that is both profitable and hard for potential followers to match is called
MrRa [10]

Arriving at a cost structure that is both profitable and hard for potential followers to match is called a <u>Price Minus</u>.

<h3>What is a Price Minus?</h3>

A Price Minus is a pricing strategy that deducts some amount from the market price to attract more customers and increase profitability to the detriment of competitors.

A price minus can be used as a market penetration strategy.

Thus, using a price minus, a company can arrive at a cost structure that achieves profitability and deters potential competitors without instigating a price war.

Learn more about pricing strategies at brainly.com/question/27124956

5 0
2 years ago
A financial instation formed by a large organizacion for its members is a savings and loan
olganol [36]

Answer:

Credit Unions

Explanation:

Credit unions are non-profit making institutions established by large corporations or other entities to cater to their employee's financial welfare. They provide traditional banking services, although they operative like cooperatives societies. Credit unions are created, managed, and belong to their members.

Credit unions mainly offer credit facilities to its members. Because they are not for profits, they provide loans at very competitive terms compared to banks.

3 0
3 years ago
Jack Company owned 20,000 shares of King Company that were purchased in 2014 for $500,000. On May 1, 2018, Jack Company declared
Tom [10]

Answer:

$150,000

Explanation:

Jack will distribute 50,000 shares / 10 = 5,000 shares

to determine the amount by retained earnings should decrease we must multiply 5,000 times the market value on the sate of declaration = 5,000 shares x $30 = $150,000

Retained earnings accounts includes all the accumulated earnings after dividends have been distributed. Dividend distributions always lower retained earnings account since without any credit balance in that account, dividends cannot be distributed.

8 0
3 years ago
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