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Kay [80]
3 years ago
13

Sean and Jenny own a home in Boulder City, Nevada, near Lake Mead. During the year, they rented the house for 40 days for $3,000

and used it for personal use for 18 days. The house remained vacant for the remainder of the year. The expenses for the house included $14,000 in mortgage interest, $3,500 in property taxes, $1,100 in utilities, $1,300 in maintenance, and $10,900 in depreciation. What is the deductible net loss for the rental of their home (without considering the passive loss limitation)
Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
8 0

Answer:

Sean and Jenny

The deductible net loss for the rental of their home is:

= $18,241.

Explanation:

a) Data and Calculations:

Number of days for rent of $3,000 collected = 40 days

Number of personal use of house = 18 days

Total number of days that the house was in use = 58 days

House Expenses:

Mortgage interest $14,000

Property taxes          3,500

Utilities                       1,100

Maintenance             1,300

Depreciation          10,900

Total expenses  $30,800

Proportion of house expense:

Rental use =       $21,241 (40/58 * $30,800) 69%

Personal use =   $9,559 (18/58 * $30,800)   31%

Total expense $30,800

The deductible net loss for the rental of their home is $18,241 ($3,000 - $21,241).

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Which of the following items are normally classified as current liabilities for a company that has a one-year operating cycle? (
sukhopar [10]

Answer:

The correct answer are D, E and F

Explanation:

Current liabilities are the short-term obligations of the company or the business which are due within the period of one year or within a operating cycle. An operating cycle states the cash conversion cycle, which is the time taken by the company to purchase the inventory and then convert the inventory into cash through sales.

The items which can be classified as Current Liabilities are portion of the long term note which is due in 1 month, wages payable due in 7 days and  portion of the long term note which is due in 10 months.

7 0
3 years ago
When Padgett Properties LLC was formed, Nova contributed land (value of $358,500 and basis of $89,625) and $179,250 cash, and Os
lawyer [7]

Answer:Amount of Nova and Oscar's gain=$492,937.50

Explanation:

a)According to  Land recorded for   § 704(b) book capital account purposes, Land is  recorded at fair market value. With this, the Padgett properties should record the land at $358,500

b)From the question, it is given that the  basis of land is  $89,625. Therefore, the Padgett Properties LLC's tax basis in the land is $89,625.

c)Amount of Nova and Oscar's gain.

Fair market value of Land         $358,500

Basis of land                                  $89,625  

total                                              $ 448,125

but Gain =  Selling price of land - Fair value of Land  x interest in partnership profits and capital  

= $537,750 - ($358,500+$89,625 )

=($537,750 - $448,125 )  x 50% =$44,812.50

Total gain                   $448,125 + $44,812.50 =$492,937.50

4 0
2 years ago
The ABC Company expects stock prices to decrease. The current stock price is $96. The company purchases a put option, with exerc
Talja [164]

Answer:

Payoff = $2 per share.

Explanation:

In a put option, the long (the party that buy the put) will have gain on the option when the underlying asset price is lower than the excercise price of that asset <em>(imagine the advantage that you can sell a chicken at $12 when it market price of is is only 10)</em>.

Because the stock price is $91, lower than exercise price of 93, so the company should exercise the put. Total payoff per share is 93 - 91 = $2.

<em>Note: We dont include premium to buy the put here because the question asking about payoff. We on include premium in calculations when the question is about profit.</em>

6 0
3 years ago
Which systems are worth sharing on a transnational​ basis, from a cost and feasibility point of​ view? .
Hoochie [10]

Answer:

The systems that support functions that are absolutely critical to the organization

Explanation:

Only the systems that support functions that are absolutely critical to the organization. Critical in such that it no organization can do without them, I.e they are very important to for their survival.

4 0
3 years ago
When discussing time-value-of-money it is necessary to understand some key terminology. Which of the following terms refers to a
Elanso [62]

Answer:

C. Ordinary annuity

Explanation:

The ordinary annuity is the sequence amount of an equivalent lump sum containing a fixed amount of money to be paid or earned at the end of each term. Periods here can be in weekly, monthly, semi-annual or semi-annual, or annual. The number should be the present value

Thus, the appropriate choice is c.

Therefore, all the remaining options are wrong

5 0
2 years ago
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