Households play a role in the circular flow of goods

Kareem bought a rental house in March 2014 for $300,000, of which $50,000 is allocated to the land and $250,000 to the building.

Bingel [31]

Answer: See explanation

Explanation:

a. What is Kareem's realized gain or loss?

Amount realized from sale = $330,000

Less: adjusted basis for house and land = $269000

Less: tennis court adjusted basis = $6200

Realized gain = $54700

b. What is the adjusted basis of the rental house and land at the time of the sale?

Original land basis = $50000

Add: Original house basis = $25000

Less: Depreciation = $30900

Adjusted basis = $269100

c. What is the adjusted basis of the tennis court at the time of the sale?

Tennis court original basis = $7500

Less: Depreciation = $1300

Adjusted basis of the tennis court = $6200

d. If the buyer takes the property subject to the $80,000 mortgage, rather than assuming it, what is Kareem's realized gain or loss?

Amount realized = $330000 + $80000 = $410,000

Less: Adjusted basis for house and land = $269100

Less: Adjusted basis of tennis court = $6200

Realized gain = $134700

3 0

3 years ago

An entrepreneur takes a risk to create a new product or a better way to operate a 4.

Serhud [2]

It is true :) :) :) like if this helped <span />

6 0

3 years ago

What type of event would cause two separate journal entries to be made?

Lorico [155]

The answer is e i did the test too

8 0

3 years ago

a woman likes to draw she is very good at but also like photography and she is looking for a stable career which one should she

elena55 [62]

She should do photography.

4 0

3 years ago

Read 2 more answers

At Abendreg, a multinational law firm, only English-speaking trainers are given the opportunity to impart training to employees

geniusboy [140]

Answer:

Adverse impact

Explanation:

Adverse impact is the unpleasant effect of a bias segmentation of a particular group during selection procedures such as employment, hiring, training, layoff or appraisal processes. Adverse impact in a work place processes may give rise to discrimination directed to a particular group base on a given attributes such as qualifications, ability, age, gender etc.

In this question, the company has most of its branches in English-speaking countries hence they only gave preferences to English-speaking trainers to impart training to employees in different countries

7 0

3 years ago