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AURORKA [14]
3 years ago
9

Paula inherits a home on July 1, 2019 that had a basis in the hands of the decedent at death of $290,000 and a fair market value

of $500,000 at the date of the decedent's death. Paula decides to sell her old principal residence, which she has owned and occupied for nine years, with an adjusted basis of $125,000 and move into the inherited home. On September 16, 2019, she sells the old residence for $600,000. Paula incurs selling expenses of $30,000 and legal fees of $2,000. She decides to add a pool, deck, pool house, and recreation room to the inherited home at a cost of $100,000. These additions are completed and paid for on November 1, 2019. What is her recognized gain on the sale of her old principal residence and her basis in the inherited home?
Business
1 answer:
Airida [17]3 years ago
4 0

Answer:

her recognized gain on the sale of her old principal residence is $193,000 and her basis in the inherited home is $600,000.

Explanation:

Recognized gain on sale of old house

= ($600,000 - $125000) - $30,000 - $2000

= $443,000

Paula's recognized gain = $443,000 - $250,000

                                         = $193,000

Her basis in the inherited home = $500,000 + $100,000

                                                      = $600,000

Therefore, her recognized gain on the sale of her old principal residence is $193,000 and her basis in the inherited home is $600,000.

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oee [108]

Answer:

C- you have a large monthly car payment

Explanation:

Financial reserve of an individual is the money an individual keeps to be able to cater to short-term and emergency needs.

Short-term investments are important for financial reserve because it helps individuals to recover thier money back even though it may produce low rates. Having significant cash reserves gives an individual the ability to make a large purchase while having reserve to cater for other pressing bills immediately. Individuals are advice to have financial reserve especially when they are constantly paying large monthly bills so as not to affect thier primal needs eg an individual having large monthly car payments should have enough reserve to pay for his car and also for his needs because it can come in handy when there financial problems and money is required for something immediately.

5 0
3 years ago
Rotonga Manufacturing Company leases a vehicle to deliver its finished products to customers. Which of the following terms corre
Anton [14]

Answer:

b.) fixed cost

Explanation:

Fixed cost is a cost which has incurred and does not varies with change in the amount of goods being produced or being sold in the market.

These are expenses are paid by the company

Fixed costs are independent of any business related activities.

Here,

the lease amount is paid once for a vehicle and the lease amount of this truck does not varies with the amount of products company produces.

3 0
3 years ago
The nation of Newbie is establishing its monetary system and is designing its currency. The first proposal is to issue the Newbi
aliya0001 [1]

Answer:

The answer is yes, it will function as a medium of exchange.

Explanation:

Money has three functions, store of value, unit of account and medium of exchange. Money that can be used as a medium of exchange is money that is accepted as such by both buyers and sellers, and that is comfortable, or convenient enough, to be carried and exchanged

In this example, the nation of Newbie will issue a currency that can be easily transported. While heavy stock cardboard is a little bit heavier than the paper in which most modern-day currencies are printed, the weight is still light, and does not impede easy transportation and exchange of the currency bills.

Besides, the new Newbie Nugget will be what is know was the legal tender of the nation. The legal tender is the currency that a specific country accepts to collect taxes. This gives more legitimacy to Newbie Nugget and makes it a classical example of a medium of exchange.

3 0
3 years ago
Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The follo
RUDIKE [14]

Answer:

The correct option is C,$2.25 and $0.00.

Explanation:

The annual preferred shares dividends=20,000*$100*2%=$40,000

In the first year ,dividends of $10,000 paid would go to preferred stockholders while the common stockholders receive nothing.

In the second year,it is imperative to note that the balance of unpaid preferred stock dividends of $30,000 ($40,000-$10,000) would be paid alongside this year preferred dividends.

preferred stock dividends=$30,000+$40,000

However the $45,000 paid is not enough to settle the preferred stockholders,again,the total dividends of $45,000 would be paid to preferred stockholders

preferred stock dividend per share=$45,000/20,000=$2.25

common stock dividend per share is $0

Option C is the correct answer.

5 0
2 years ago
Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Pro
Black_prince [1.1K]

Answer:

$28,600

Explanation:

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

As such, the net operating income/loss is the difference between the sales and the total costs.

The company's net operating income (loss)

= $42,300 + $94,700 -  $108,400

= $28,600

8 0
2 years ago
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