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2 years ago

Compare and contrast different ways in which a taxpayer triggers a realization event by disposing of an asset.

Business

1 answer:

aniked [119]2 years ago

8 0

Answer:

There are many ways a taxpayer can trigger a realization event. She can trigger it through a sale or trade by receiving a value greater than the disposed asset. She can also trigger a realization event by making a gift to charity. Other ways include disposal, for example, to a landfill and destruction through natural disaster. In the latter cases, there is a loss to the taxpayer. With a natural disaster, the taxpayer can only obtain a realization gain if reimbursed by the insurance company.

Explanation:

A realization event happens when there is a sale or a disposal of an asset or a discharge from a liability. There is usually an increase in the value realized from the disposal, which is greater than the asset's value before disposal. It also happens when the taxpayer receives a relief from a liability or completes a profitable transaction.

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Amazon creates many utilities for its customers, but perhaps the most valuable utility for consumers is ____________, the utilit

Anna007 [38]

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3 years ago

Jake wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacati

In-s [12.5K]

Answer:

1. Jake can easily determine that the price of the computer is more than the price of the vacation. ⇒ UNIT OF ACCOUNT

2. Jake has $1,574 in his checking account. ⇒ STORE OF VALUE

3. Jake writes a check for $1,299. ⇒ MEDIUM OF EXCHANGE

Explanation:

The four functions of money are:

unit of account: since money is a common denominator, it helps to assign value to different goods and services.
store of value: you can save money in order to purchase gods and services in the future.
medium of exchange: you can purchase and sell goods and services using. money
standard of deferred payment: money allows loans that require future payments of both principal and interest.

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2 years ago

Which of the following statements is NOT true concerning the Other Dependent Credit

omeli [17]

Answer:

The incorrect statement is letter "B": Residents of Canada meet the definition as a qualifying person.

Explanation:

Credit for Other Dependent is a tax credit taxpayers can claim for every qualifying dependent that is not considered as a Child Tax Credit (17 years or older and elderly parents). The taxpayer can get up to $500 nonrefundable credit for each of those qualifying dependents. Residents of Canada and Mexico do not meet the definition of qualifying dependent.

8 0

2 years ago

Read 2 more answers

Kenji has had an illness and an accident during the year. His combined out-of-pocket expense for both incidents was $1,000. The

AfilCa [17]

Answer:

b. Deductible

Explanation:

Since in the question it is mentioned that Kenji who had an illness and had an accident during the year also the combined out of pocket expenses is $1,000.

So this $1,000 represent the deductible

hence, the correct option is b.

And the other options are wrong

Therefore the same is to be considered

7 0

2 years ago

on august 1, paid $72,000 cash to purchase houtte's 9%, six-month debt securities ($72,000 principal), dated august 1.

Kitty [74]

Here short term investment is debited as it increased the asset and credited the cash as decreased the asset.

here cash is debited as it increased the asset and credited the interest revenue as it also increased the revenue.

What Are Short-Term Investments?

Marketable securities, commonly referred to as temporary investments or short-term investments, are financial investments that can be quickly converted to cash, usually within five years.
After only three to twelve months, many short-term investments are sold or turned into cash. CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills are a few typical examples of short-term investments.
Short-term investments, also known as marketable securities or temporary investments, are financial investments that can be easily converted to cash, typically within 5 years.
Typically, these investments are high-quality and highly liquid assets or investment vehicles.
Short-term investments may also specifically refer to financial assets of a similar kind, but with a few additional requirements, that are owned by a company.

To know more about Short-term investment visit:

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1 year ago