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Varvara68 [4.7K]
3 years ago
15

Arthur owns a tract of undeveloped land (adjusted basis of $145,000) which he sells to his son, Ned, for its fair market value o

f $105,000. What is Arthur’s recognized gain or (loss) and Ned’s basis in the land?
Business
1 answer:
Dovator [93]3 years ago
4 0

Answer:

Arthur’s recognized gain or (loss) = $0

Ned’s basis in the land = $105,000

Explanation:

As the adjusted basis for Arthur was $145,000 and he sold it for $105,000 hence, there is no gain. Ned basis is the fair market value at which he purchased the tract of land.

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rick's pawn shop issued 11% bonds, dated january 1, with a face amount of $400,000 on january 1, 2022. the bonds sold for $370,0
geniusboy [140]

An unrealized gain of $5,412 from the change in the fair value of the debt.

<h3>How does general interest rate risk work?</h3>

Interest-rate risk (IRR) is the exposure of a financial institution to unfavorable changes in interest rates. Accepting this risk is common practice in the banking industry and can be a key driver of profitability and shareholder value.

Explanation:

Given that the bond's face value is $400 000

Bond selling price: $370,000

yield until maturity equals 12%

Bond has a fair value of $365,000.

Value shifted = $2,000

Net income and OCI are both included in comprehensive income.

To learn more about Interest-rate risk (IRR) refer to:

brainly.com/question/20715710

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6 0
1 year ago
Karen and Al obtained a 30-year fixed-rate, fully amortized loan when they purchased their home. Which statement is true
murzikaleks [220]

Based on the information given regarding the mortgage, the true statement will be that each of their payments is for the same amount.

A fully amortized payment simply means a payment where the individual makes every payment according to the schedule of the loan.

A fully amortized payment is a periodic repayment of a debt. Since Karen and Al obtained a 30-year fixed-rate fully amortized loan when they purchased their home, they'll pay the same amount monthly.

Learn more about mortgage on:

brainly.com/question/1318711

5 0
2 years ago
On August 1, our company purchases $1,000 worth of merchandise inventory on credit with the terms 2/10, n/30. What is the amount
vampirchik [111]

Answer:

a) $1,000

Explanation:

Early Settlement Discount

This form of quotation is common with suppliers offering their customers deferred payment arrangement in a sale contract. Usually, under this arrangement customers are allowed to purchase goods on credit and settle their acccount at a specified  later date.

However, to encourage customers to pay up their outstanding earlier than expected, suppliers do offer early settlement discount as incentives to induce prompt payment.

A quotation of 2/10, n/30

This implies that the customer is a given a 30-day period from the date of purchase within which he is expected to settle his account. However, if he does so within the next 10 days of purchase he will be given a 2% discount.

<em>Applying this to the question, the purchase date is August 1, the the latest date for which account is settle to qualify for early settlement discount will be 11 days i.e (1+10) .</em>

Since the payment will be made on August 12, no cash discount will received. Therefore, a payment of gross amount of $1,000 would be credited to the cash account.

7 0
3 years ago
SuperGroup has expressed the intention to begin selling in other countries, including China, while still protecting its Superdry
Paul [167]

Answer:

Marketing and sales segment.

Explanation:

  • A values chain consists of actions that a firm functioning in a public industry that performs in order to deliver a valuable product to the market.
  • The idea value chain is based on the process view of a manufacturing organization as a system of subsystems that transforms and processes money, labor, and materials, etc.
  • The marketing and sales is considered to be a primary function and include the creation of salesforce, advertising campaigns, and giving values to its customers, clients and partners.
5 0
3 years ago
The Green Machine Manufacturing Company has the option to make or buy a component part for one of its lawnmowers. The annual req
Korvikt [17]
B. What is the total cost at the break even point.
8 0
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