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Elis [28]
3 years ago
11

How much increase in net worth (equity) would a market basis balance sheet show over a cost basis if Land was purchased for $1,0

00,000, is currently valued at $5,500,000 and capital gains taxes are 10%
Business
1 answer:
Pachacha [2.7K]3 years ago
3 0

Answer: $4,050,000

Explanation:

Increase in net worth shows the after tax gain that the person got after the land in question increased in value.

= (Current value - Purchase price) * ( 1 - tax rate)

= (5,500,000 - 1,000,000) * (1 - 10%)

= 4,500,000 * 0.90

= $4,050,000

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Taxation of Business Entities, 2016 edition7-65.) Wolverine Corporation made a distribution of $500,000 to Jim Har Inc. in par-t
marusya05 [52]

Answer:

a. Dividend

b. $500,000

Explanation:

a. As in the given case, the character of any income or gain recognized is the dividend of $500,000 which eligible him to avail 100% deduction of the dividend amount

b. The reduced amount would be lower of the distributed amount or 50% of Total E&P

Distributed amount is $500,000

And, the 50% of total E&P is =  $8,000,000 × 50% = $4,000,000

So, the lesser amount is $500,000 which is reduced its total E&P

5 0
3 years ago
When banks provide information about savings accounts, they typically quote the interest rates they offer (e.g. 1%) on a...
ra1l [238]

Answer:

D. Annual basis

Explanation:

Banks and other financial institutions typically quote interest rates that they pay for deposits on an annual basis. This is to say, the quote the effective rate that is compounded annually, even if the interest is paid monthly, daily, quaterly, or semi-annually.

6 0
3 years ago
Suppose you are interested in studying whether scent affects spatial reasoning abilities. You decide to test spatial reasoning u
Brilliant_brown [7]

Answer: 1. c. There are no differences in the mean completion times among the scents compared

2. Scent; Completion Time

Explanation:

The Null Hypothesis of a research is that hypothesis which you aim to disprove because it holds that no significant relationship between the variables being researched exists.

In this scenario you are studying whether scent affects spatial reasoning abilities.

The Null Hypothesis will.be that which states that there is no relationship between scent and spartial reasoning therefore there will be no differences in the mean completion times among the scents compared.

The factor of interest is the variable that is being changed to examine a difference making it the SCENT in this scenario.

The dependent variable changes due to the Factor of Interest so it is the COMPLETION TIME.

6 0
3 years ago
What will you be least likely to be responsible of as part of the accounting team of your organization? A. reconciling accounts
riadik2000 [5.3K]

Accounting is <em>a field that is concerned with the processing, measuring, and communicating of financial information of a company.</em> If you worked in an accounting department, you would most definitely have to reconcile accounts, prepare financial statements, monitor accounting activities, and prepare an investment schedule for the organization.

You will not, however, be expected to (D) develop marketing and advertising strategies. This type of task is usually assigned to the marketing department of a company.  

5 0
3 years ago
Suppose that the market equilibrium price for a basic medical check-up is $50, in a market in which there is no health insurance
asambeis [7]

Answer:

The number of check-ups in this market would decrease.

Explanation:

This is an example of price ceiling.  

Price ceiling refers to a legal maximum price that is set by the government for a commodity to be sold.

Price ceiling set below the equilibrium price will result in a supply shortage as it will be effective and binding, while price ceiling set above the equilibrium price will not affect quantity supplied in the market as it will not be effective and binding.

Since the $40 price of heck-up is below $50 equilibrium price, it will result in shortage supply and the number of check-ups in this market would decrease.

5 0
3 years ago
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