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ozzi
3 years ago
15

Moss exchanges a warehouse for a building he will use as an office building. The adjusted basis of the warehouse is $ 600,000 an

d the fair market value of the office building is $360,000. In addition, Moss receives cash of $ 150,000. What is the recognized gain or loss and the basis of the office building
Business
1 answer:
Tanya [424]3 years ago
5 0

Answer:

Moss

The recognized loss and the basis of the office building are:

Recognized loss = $90,000

Basis of office building = $360,000

Explanation:

a) Data and Calculations:

Adjusted basis of warehouse = $600,000

Fair market value of the office building = $360,000

Cash received in exchange = $150,000

Total value of assets received in exchange of the warehouse = $510,000 ($360,000 + $150,000)

Recognized loss = $90,000 ($600,000 - $510,000).

b) From the above transactions, Moss will recognize a loss of $90,000.  This is the difference between the adjusted basis of the warehouse and the fair market value of the office building and the cash that Moss received in exchange for the warehouse.

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Michelle is attending a university where tuition for one year costs $17,300. She has a scholarship worth $5,000 per year. She ea
Dmitry_Shevchenko [17]

Answer:

$41,400

Explanation:

Tuition will increase by $500 each year

Year 1 tuition = $17,300

Year 2 tuition = $17,800

Year 3 tuition = $18,300

Year 4 tuition = $18,800

Total = $72,200

Scholarship per year = $5000

Total scholarship for 4 years = 4 * $5000

= $20,000

Earnings per year = $2,700

Total earnings for four years = 4 * $2,700

= $10,800

She plans to take out a loan to cover the remaining tuition costs

Loan = Total tuition - (Total scholarship for 4 years + Total earnings for four years)

= $72,200 - ( $20,000 + $10,800)

= 72,200 - (30,800)

= 72,200 - 30,800

= 41,400

Loan = $41,400

Michelle need to borrow $41,400

6 0
3 years ago
Ferret boy names NO HUMAN NAMES (chase, rick, bob, george, etc)
DaniilM [7]

Answer:

jimmy

Explanation:

just bc i said so its funny and cute

8 0
2 years ago
Read 2 more answers
Government programs that compensate farmers for not planting crops on all their land : hurt farmers by lowering their total reve
Zolol [24]

Answer:

Help farmers by increasing total revenue in the market but hurt consumers by raising food prices

Explanation:

Farm subsidies are expensive for taxpayers while also harming the economy and the environment. These government programs restrict farmers from wanting to innovate, cut costs, diversify their use of the land, and perform other necessary actions that bring them economic prosperity. This affects customers by raising food prices.

3 0
3 years ago
Westchester Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A
inn [45]

Answer:

d. If the WACC is 9%, Project B's NPV will be higher than Project A's.

Explanation:

The internal rate of return is the return in which the NPV is zero i.e cash inflows equal to the initial investment

While the WACC refers to the cost of capital by considering the capital structure i.e cost of equity, cost of preferred stock and cost of debt by taking their weightage

Now if the WACC is 9% so project B NPV would be higher as compared to project A as we can see that project B IRR is greater than the project A IRR

Therefore option d is correct

5 0
3 years ago
Wesimann Co. issued 12-year bonds a year ago at a coupon rate of 7.2 percent. The bonds make semiannual payments and have a par
strojnjashka [21]

Answer:

$1,138.92

Explanation:

Current bond price can be calculated present value (PV) of cash flows formula below:

Current price or PV of bond = C{[1 - (1 + i)^-n] ÷ i} + {M × (1 + i)^-n} ...... (1)

Where:

Face value = $1,000

r = coupon rate = 7.2% annually = (7.2% ÷ 2) semiannually = 3.6% semiannually

C = Amount of semiannual interest payment = Face value × r

C = $1,000 × 3.6% = $36

n = number of payment periods remaining = (12 - 1) × 2 = 22

i = YTM = 5.5% annually = (5.5% ÷ 2) semiannually = 2.75% semiannually  = 0.0275 semiannually

M = value at maturity = face value = $1,000

Substituting the values into equation (1), we have:

PV of bond = 36{[1 - (1 + 0.0275)^-22] ÷ 0.0275} + {1,000 × (1 + 0.0275)^-22}

PV of bond = $1,138.92.

Therefore, the current bond price is $1,138.92.

4 0
3 years ago
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