Answer:
<u>$485,000</u>
Explanation:
Initial cost of home= $270,000+$45,000= $315,000.
Recognized gain= $800,000 - $315,000 = $485,000.
Remember, it was mentioned that Abigail and Darcy immediately purchased another home for $800,000. Very likely this money was derived from the first and only home they ever sold.
Therefore, their recognized gain after substracting the cost is $485,000.
Answer:
$679,700
Explanation:
I believe Mickelson is the person preparing the books for Indigo Inc.
This question tests your knowledge of revaluation and its application to financial statements. It indirectly checks your knowledge of depreciation also.
A quick definition of terms would make it clearer.
Depreciation is the systematic allocation of the price of an asset over its useful life. That is once an asset (non-current) is purchased, it cannot be used up immediately in one financial year, hence accountants usually want to spread the use of the asset and match it with whatever revenue they get from the use of the asset (an application of prudence concept).
But land does not depreciate, rather it appreciates over time. Due to the fact that land appreciates over time, it would be misrepresentation on the part of Mickelson to report the value of the asset in December 2017 at the price in which the land was purchased in 2000.
Because land appreciates over time, a revaluation is more appropriate. this revaluation compares the carrying value of the land with the fair value on the land as at the date of revaluation (comparing $418,200 with $679,700) and the higher is used.
Hence to faithfully represent the current details of the status of the land, the IFRS (International Financial Reporting Standards) states that the entity should record the value of land at fair value.
I hope this is clear and easy to understand.
Other concepts you might want to check out are;
depreciation
carrying amount
revaluation surplus
fair value
Answer:
Break-even point in dollars= $36,364
Explanation:
Giving the following information:
A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25, and bar stools $20. The fixed cost for the firm is $20,000.
To calculate the break-even point in dollars for the firm, we need to use the following formula:
Break-even point (dollars)= Total fixed costs / [(weighted average selling price - weighted average variable expense)/ weighted average selling price]
weighted average selling price= (selling price* weighted sales participation)= $50
weighted average variable cost= (variable cost* weighted sales participation)
weighted average variable cost= (25*0.5 + 20*0.50)= $22.5
Break-even point in dollars= 20,000/ [(50 - 22.5)/ 50]= $36,364
Considering the situation described above, the applicable threshold for the A 199A pass-through deduction is "<u>$326,600</u>."
This is according to the IRS (Internal Revenue Service), which stated that for the taxable year 2021, the amounts is given as:
Married Filing Jointly Threshold: $326,600;
Phase-in Range: above $326,600 up to $426,600;
All others Threshold: $163,300;
Phase-in Range: above $163,300 up to $213,300.
Therefore, given that Bill and Edna are filing jointly as a married couple, then the applicable threshold for the A 199A pass-through deduction is "<u>$326,600</u>."
Hence, in this case, it is concluded that the correct answer is "<u>$326,600</u>."
Learn more about tax returns here: brainly.com/question/2135349
Answer:
Correct Answer:
c. joint tenancy with rights of survivorship
Explanation:
The property Jay owes on Gatsby Island belongs to him but he wishes to share th ownership with his 2 good friends. His conveyance of the message to both which reads <em><u>"tenants by the entirety"</u></em> <em>shows that he and his friends has equal ownership and rights to the Gatsby Island property.</em>
<em>In the event that either him or one of the friends dies, the full title of the property automatically passes to the surviving person.</em>
