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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.

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Which of the following statements regarding inventory costing methods is correct? Multiple Choice In periods of inflation, LIFO
Lynna [10]

Answer:

In periods of inflation, LIFO will result in the lowest reported net income, and therefore a company will pay less in federal income taxes ⇒ TRUE STATEMENT

Explanation:

Last in, first out (LIFO) uses the  price of the last units purchased in order to determine the cost of goods sold. When inflation is high, prices tend to increase continuously, therefore, the price of the last units purchased will always be higher than the price of the first units purchased. This doesn't mean that exactly the last units purchased will be the ones sold, it is just an accounting method.

3 0
3 years ago
All else equal, which of the following would tend to cause real GDP per person to rise? a. a change from inward-oriented policie
bagirrra123 [75]

Answer:

The correct option is D

Explanation:

GDP (Gross Domestic Product) is the monetary amount of all the finished goods and services which is made within a country during a particular period. It measures or evaluates the value of the economic activity within a country.

Rise in GDP could be because of the strengthening in the property rights, increase in the investment in human capital and change from inward oriented policies to the outward policies.

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8 0
3 years ago
Neptune Company produces toys and other items for use in bthe following and resort areas. A small, inflatable toy has come onto
Sergeu [11.5K]

Break-even point (in dollar sales):

Determine the monthly break-even point for the new toy in dollar sales as shown below:

Break-even point (in sales dollars) = Break-even point (in units) × Selling price per unit

=50,115 units $2.60 each

= $130,299

Thus, the break-even point (in sales dollars) is $130, 299.

The break-even point is the point at which total costs equal total sales. In other words, there is no loss or profit for small businesses. This means that we have reached a stage of production where the cost of production equals the revenue of the product. A breakeven point is used in multiple areas of business and finance.

Learn more about the break-even point at

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8 0
2 years ago
Simone is a 26-year-old who lost her job as a copy editor for a local newspaper. She has spent the past few weeks out of work an
AlekseyPX

Answer:

Simone will be considered unemployed.

Explanation:

Simone is 26 years old, this means that she is in the adult population. She used to work as a copy editor for a newspaper. She has lost her job and is actively looking for work. She will be considered an unemployed person and will be included in the labor force.  

Those workers who do not have a job currently but are actively looking for one are considered unemployed. Those who are without jobs but are not actively looking for one are considered discouraged workers and are not included in the labor force. The labor force includes only employed and unemployed workers.

5 0
3 years ago
Soda and pizza are complements because they are often enjoyed together. When the price of soda rises, what happens to the supply
almond37 [142]

Explanation:

In the case of the complements goods, if the price of the soda rises, the demand would be decreased and the supply would rises. Since the soda and pizza are complementary goods so the impact of one good would be the same for another good also

Moreover, we also know that the price and the demand has an inverse relationship but the price and the supply has a direct relationship

6 0
3 years ago
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