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alexira [117]
2 years ago
14

Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart ha

s a marginal tax rate of 32 percent.
a1. What is the amount and character of Hart's recognized gain or loss if the asset is tangible personal property sold for $550,000?
a2. Due to this sale, what tax effect does Hart have for the year?
Business
1 answer:
katen-ka-za [31]2 years ago
5 0

Answer and Explanation:

The computation is shown below:

a. The amount and the character of the gain or loss is

Sale value of the property $550,000

Less: (Purchase value - depreciation) $400,000

Total gain recognized $150,000

Ordinary income recapture is $100,000

remaining 1231 gain or loss $50,000

b.

Section 1231 Gain = $50,000

, Rate of tax on $100,000 i.e. 32% = $32000

Rate of tax on $50000 i.e. 15% = $7500

So,

The Total tax liability is

= $32,000 + $7,500

= $39,500

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Analysts estimate that a bond has a 40 percent probability of being priced at $950 and a 60 percent probability of being priced
AnnZ [28]

Answer:

Explanation:

40% probability that bond will be priced at $950

60% probability that bond will be priced at $1050

Expected value of the bond in one year:

(Probability*Price of bond) + (Probability * Callable price bond)= (0.4*$950)+(0.60*$1010)=$986

So, expected value is $986

8 0
3 years ago
Horton Company purchased a building on January 2 by signing a long-term $480,000 mortgage with monthly payments of $4,500. The m
Ganezh [65]

Answer:

$479,500

Explanation:

To determine the interest due for the first payment we can solve the following:

interest due on payment 1 = total debt x interest rate x 1/12 = $480,000 x 10% x 1/12 = $4,000

Now we need to subtract the interest due from the first payment:

principal paid = payment - interest due = $4,500 - $4,000 = $500

remaining principal = $480,000 - $500 =  $479,500

8 0
2 years ago
Prepare a direct materials purchasing plan for January, February, and March, based on the following facts. Lana Gonzales owns a
larisa [96]

Answer:

January cost $702,200

February cost $812,200

March cost $950,400

Total Purchase cost    

Particulars                     January February  March

Purchase cost of blades $ 207,200.00 $ 227,200.00 $ 230,400.00

Purchase cost of motor $ 495,000.00 $ 585,000.00 $ 720,000.00

                                        $ 702,200.00 $ 812,200.00 $ 950,400.00

 

Explanation:

R.M budget - blades    

Particulars  January February March April

Planned production  11000 13000 16000 12000

Blades req. per unit  4          4                 4                      4

Material req. for prod. 44000 52000 64000 48000

Add: Desired ending inventory 20800 25600 19200 0

Less: Beginning inventory  13000 20800 25600

Net units of blades req. 51800 56800 57600

Cost per blade  $             4.00 $             4.00 $             4.00

Purchase cost of blades $ 207,200.00 $ 227,200.00 $ 230,400.00

R.M budget - motor    

Particulars  January February March April

Planned production  11000 13000 16000 12000

Motor req. per unit  1 1 1 1

Material req. for prod. 11000 13000 16000 12000

Cost per motor  $           45.00 $           45.00 $           45.00

Purchase cost of motor $ 495,000.00 $ 585,000.00 $ 720,000.00

6 0
3 years ago
​Electric, Inc. was incorporated on January​ 1, 2016. Electric issued 7 comma 000 shares of common stock and 1 comma 200 shares
marta [7]

Answer:

$48,000

Explanation:

The computation of the total amount paid to the preferred shareholder is shown below:

= Number of preferred stock shares × par value × dividend rate × number of years

= 1,200 shares × $100 × 10% × 4 years

= $48,000

Simply we multiplied with the number of preferred stock with the par value, its dividend rate and the time period so that the correct value can come

All other information which is given is not relevant. Hence, ignored it

7 0
3 years ago
According to John Kotter, which of the following actions will adversely influence refreezing efforts?A) the absence of a visionB
dedylja [7]

Answer:

D) declaring victory too soon

Explanation:

John Kotter in this theory of leadership explains the concept and importance of change. He basically believes that the company shall be currently functional.

By the term currently functional he means that the company shall be updated and working on with the current market trend. This means the company shall not be resistant to change and that the management shall take a note of it.

Further in the moving scenario there is no freezing point - the company shall constantly work on the new things which it can improve and excel.

Thus, final confirmation cannot be made soon as towards the change made.

6 0
3 years ago
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