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
ale4655 [162]
2 years ago
13

On February 24, 2020, Allison's building, with an adjusted basis of $2,986,000 (and used in her trade or business), is destroyed

by fire. On March 31, 2020, she receives an insurance reimbursement of $3,881,800 for the loss. Allison invests $3,493,620 in a new building and buys stock with the balance of insurance proceeds. Allison is a calendar year taxpayer. a. By what date must Allison make the new investment to qualify for the nonrecognition election
Business
1 answer:
astra-53 [7]2 years ago
6 0

Answer:

As a calendar-year taxpayer, Allison must make the new investment by December 31, 2020 to qualify for the nonrecognition election.

Explanation:

a) Data and Calculations:

Adjusted basis of building = $2,986,000

Insurance reimbursement = $3,881,800

Gain from loss = $895,800 ($3,881,800 - $2,986,000)

Investment in new building = $3,493,620

Purchase of stock = $388,180 ($3,881,800 - $3,493,620)

b) Allison is expected to make the election for the nonrecognition of the gain from loss in his Federal Tax return in the taxable year in which the gain with respect to the loss of the building is realized.  The return must set forth the computation of the gain and other required details.

You might be interested in
In the design of a chemical plant, the following costs and revenues (in the third year of production) are projected:
miss Akunina [59]

Answer:

A

Explanation:

6 0
3 years ago
PIRs (planned independent requirements) are calculated based on actual and forecasted sales.a) trueb) false
DochEvi [55]

Answer:

A. True

Explanation:

Option A is correct because PIRs (planned independent requirements) are calculated based on actual and forecasted sales.

In PIR, the independent requirement for final goods is calculated by the sales and the activities /operation for material planning process.

4 0
3 years ago
A faculty group wants to determine whether job rating (x) is a useful linear predictor of raise (y). Consequently, the group con
Studentka2010 [4]

Answer:

The answer is "D".

Explanation:

Since the value of b1 is negative, the regression line decreases as b1 increases

For a 1-point increase in an administrators rating, we estimate the administrators raise to decrease $2,000.

7 0
3 years ago
A performance obligation​ is: A. An enforceable promise in a contract with a customer to transfer a good or service to the custo
Bumek [7]

Answer:

The correct answer is D. A promise in a contract with a customer to transfer a good or service to the customer.

Explanation:

Performance obligations are those that the entity undertakes to carry out in the contract established with a client, performance obligations are related to the deliverables established or agreed upon in a contractual manner.

At the start of the contract, the entity must evaluate the goods or services promised in a contract with a customer and must consider as a performance obligation each commitment to transfer to the customer a good or service (or a group of different goods and services) or a series of different goods or services that are substantially the same and that have the same pattern of transfer to the client.

4 0
3 years ago
Read 2 more answers
The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 8,000 batte
grin007 [14]

Answer and Explanation:

The computation is shown below:-

a) raw-materials is

= (8,000 - 7,600) × $80

= $32,000

b) work in process 7,500 batteries x $80 x 10%

= $60,000

c) Finished goods = 7,500 batteries × $80 × 90% × 30%

= $162,000

d) cost of goods sold 7,500 batteries x $80 × 90% × 70%

= $378,000

e) selling expense is

= 100 × $80

= $8,000

Total 8,000 batteries purchased × $10 per battery is

$80,000

2. Specification is shown below:

a) rawmaterials  stock               $32,000  Balance Sheet

b) work inprocess                     $60,000   BalanceSheet  

c) Finishedgoods stock            $162,000   BalanceSheet

d) cost of goodssold                 $378,000   IncomeStatement

e) sellingexpense                     $8,000   IncomeStatement

7 0
2 years ago
Other questions:
  • What are the main government restrictions on sole proprietorships?
    15·2 answers
  • Metal Smelting, Inc., operates a plant¾a "major source"¾that emits hazardous air pollutants for which the Environmental Protecti
    15·1 answer
  • When using a(n) ____, is personnel time is freed up to focus on applications, such as customer relationship management and finan
    15·1 answer
  • A product that cannot be perceived by the senses is called an _____ product.
    14·1 answer
  • 1. What are consumer goods?
    7·1 answer
  • Tom elects the Life Income with 10-year Period Certain settlement option. Tom dies in year 6. The beneficiary receives payments
    12·1 answer
  • Lee is the executive of a car manufacturer. Lee decides the appearance of one of his car designs outweighs the desire to make th
    14·1 answer
  • A researcher wanted to determine the mean number of hours per week (Sunday through Saturday) the typical person watches televisi
    9·1 answer
  • This document outlines the rules and regulations with regards to developers using brokerage services to 'test the market' for a
    13·1 answer
  • When buying school clothes at her favorite store, Evie is offered a credit card that can only be used at that particular store.
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!