1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Harlamova29_29 [7]
3 years ago
14

Janice bought her house in 2008 for $395,000. since then, she has deducted $70,000 in depreciation associated with her home offi

ce and has spent $45,000 replacing all the old pipes and plumbing. she sells the house on july 1, 2017. her realtor charged $34,700 in commissions. prior to listing the house with the realtor, she spent $300 advertising in the local newspaper. don buys the house for $500,000 in cash and assumes her mortgage of $194,000. what is janice's adjusted basis at the date of the sale and the amount realized
Business
2 answers:
Flauer [41]3 years ago
6 0

Answer:

Janice's adjusted basis = $370,000

Janice's amount realized = $659,000

Explanation:

Janice's adjusted basis = $395,000 (purchase price) - $70,000 (depreciation) + $45,000 (repairs) = $370,000

Janice's amount realized = $500,000 (cash) + $194,000 (mortgage) - $34,700 (realtor fee) - $300 (advertising expenses) = $659,000

bonufazy [111]3 years ago
5 0
At the time of sale, Janice's adjusted basis is $405,000 computed as follows: $405,000 = $395,000 (original price) + $45,000 (for replacing old pipes and plumbing) + $34,700 (realtor's commission) + $300 (advertising) - $70,000 (depreciated amount). The amount realized is $694,000 computed as: $694,000 = $500,000 (cash paid) + $194,000 (mortgage assumed by the buyer).
You might be interested in
What is an exchange rate? A. How much bonds are worth when they're exchanged with cash B. How much dollars are worth when they a
lidiya [134]

Hello!
The answer is

C. How much a currency is worth when it's exchanged with another country's currency.

Good luck!

6 0
3 years ago
To spur trade, four South American countries decide there will be no barriers to trade between the countries, agree on a common
Dmitriy789 [7]

Answer:

A free trade area

Explanation:

A free trade area comes to existence when two or more countries sign an agreement that eliminates or reduces trade barriers among themselves. Usually, nations in the same region sign a free trade agreement that encourages economic cooperation.  In a free-trade area, goods and services can move from one country to another with minimal or no government interference in terms of tariffs, embargo, quotas, or other prohibitions.

The four South American countries have formed a free trade area. They have agreed to economic cooperation that allows free flow of trade among the nations. The countries have established a trading block that will spur economic growth in each of them.

6 0
3 years ago
The employees of Carlofen, a cell phone manufacturer, raised a concern to their management about their poor pay and excess workl
a_sh-v [17]

Answer: Organization decline

Explanation: The organization inability to address the complain of its staff welfare and not being considerate with work load led to the resignation of her staff, this is known as organization decline. This affects the performance of the company especially when the company are not able to employ capable hands immediately after the resignation of it's employees for the main time, also the employees which are employed won't settle immediately for the job as it would take them time to understand their roles properly, all this factors would lead to organization decline.

5 0
3 years ago
Read 2 more answers
5. Consumers subconsciously screen out stimuli that they find psychologically threatening, even though exposure has already take
svetoff [14.1K]

Answer:

The correct answer is letter "E": Perceptual defense.

Explanation:

In psychology, perceptual defense refers to the suppression of a stimulus that represents a threat or an uncomfortable situation for an individual. Those inputs are distorted somehow by the individual to reject the unpleasant feeling so that the person does not feel that bad because of it. In such a way, the brain works as a defense mechanism able to distort information to mitigate the effects in the behavior produced by the stimulus.

5 0
3 years ago
Lancaster Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A h
levacccp [35]

Answer:

Explanation:

IRR is the discount rate point where NPV equal to 0. Given, both projects have same NPV at 8%, when discount rate is higher than 8%, NPV of project A will decrease faster than that of project B because project A's IRR is lower than project B's IRR. When discount rate is lower than 8%, NPV of project A will increase faster than project B's.

We will go through each of the answer options:

A. If the cost of capital is 9%, Project A's NPV will be higher than Project B's. False

<em>Explaination: Cost of capital here is higher than 8%, NPV of project A will be lower than that of project B.</em>

B. If the cost of capital is 6%, Project B's NPV will be higher than Project A's. False

<em>Explaination: </em>

C. If the cost of capital is greater than 14%, Project A's IRR will exceed Project B's. False

<em>Explaination: IRR is dependent on pattern of cashflows rather than cost of capital.</em><em> </em>

D. If the cost of capital is 9%, Project B's NPV will be higher than Project A's. True

<em>Explaination: This is an opposite answer to option A.</em>

E. If the cost of capital is 13%, Project A's NPV will be higher than Project B's. False

<em>Explaination: When the cost of capital is 13%, NPV of project A is negative and NPV of project B is positive.</em>

5 0
3 years ago
Other questions:
  • Outline the benefit of running a business
    12·2 answers
  • Ash company reported sales of $410,000 for year 1, $460,000 for year 2, and $510,000 for year 3. using year 1 as the base year,
    14·1 answer
  • The following selected transactions were completed during August between Summit Co. and Beartooth Co.: Aug. 1 Summit Co. sold me
    6·1 answer
  • A friend of Mr. Richards recently won a law suit for $30 million. They have the ability to either take the payments over 10 year
    12·1 answer
  • What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?
    15·1 answer
  • Using the information below for Sundar Company; determine the cost of goods manufactured during the current year:Direct material
    5·1 answer
  • Item 15Item 15If Beck's Bicycles, Inc.'s income statement shows gross profit of $350 million, with operating expenses of $120 mi
    6·1 answer
  • The trial balance of Mendez Company at the end of its fiscal year, August 31, 2022, includes these accounts: Beginning Inventory
    11·1 answer
  • A researcher submits a study to the irb that proposes
    14·1 answer
  • Even after a foreclosed property is sold at public auction, the defaulting borrower may be able to recover the property for a ti
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!