Answer and Explanation:
The actual gain or loss from the investment, including any suspended losses, should be determined when the tax payer disposes of his or her interest in a passive activity. According to the passive activity law, any gain realized on passive activity transition is viewed as passive and is initially compensated by suspended passive active losses from that activity.
If latest and suspended losses of passive activity exceed the gain accomplished, any loss from the activity for the tax year exceeding the net gain for the tax year from all passive activities shall be allowed to treat as a loss not arising from passive activity.
The computation of total gain and current deductible is shown below:-
Total gain = Net sales price - Adjusted basis amount
= $330,000 - 305,000
= $25,000
And Current deductible amount is
= Total gain earned - Suspended losses suffered
= $25,000 - $28,000
= $3,000
This amount represents the non passive amount
b. Deductible loss that may offset profit from passive investment that is realized in passive activity on the selling of partnership interest. The benefit realized in passive activity on selling of interest is regarded as passive.
Answer:
Lowered throughout 1990 s; labor force participation rate
Explanation:
The recession of 1990-1991 which lasted for 8 months elevated unemployment rate to 8.1% in 1992, but following 1990 s expansion fell to 4.6% in 2001. Increase in labor force participation, mainly with Baby Boomers generation, which was in its prime ( ages between 37 and 55 in 2001) lead to positive growth in the 90 s. There were numerous other reasons like:
- significantly lower oil prices between mid-to-late 1990 s
- reform of welfare system, which significantly reduced the time users can receive aid
- more egalitarian tax structure
- job growth associated with informational technology revolution
Answer:
c. cost approach
Explanation:
The cost approach is a real estate valuation method in which the price estimated regarding the buyer that have to pay for the property and the same is equivalnet to the cost for creating a buidling.
Here the property value should be equivalent to the land cost also add the construction cost and minus the depreciation expense
So as per the given situation, it is the cost approach that determined the market value of the property
Answer:
<u>Uniform delivered pricing</u>
Explanation:
<u>Uniform delivered pricing:</u> In business or management, the term "uniform delivered pricing" is determined as one of the pricing methods whereby every customer tends to pay a similar amount of money or freight costs to the seller irrespective of their distance from the seller's dispatch point. Uniform delivered pricing is also denoted as "postage stamp pricing".
<u>In the question above, the given statement represents the "uniform delivered pricing".</u>
Answer:
the opportunity cost of the land purchase is $34,050
Explanation:
The computation of the opportunity cost of the land purchase is shown below;
= Cash outlay × return percentage
= $227,000 × 15%
= $34,050
Hence the opportunity cost of the land purchase is $34,050
We simply multiplied the cash outlay with the return percentage so the same would be calculated