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kupik [55]
3 years ago
14

Corporation Q, a calendar year taxpayer, has incurred the following Section 1231 net gains and losses since its formation in 201

6: 2016 2017 2018 Section 1231 gains $ 14,800 $ 5,700 0 Section 1231 losses (13,000 ) (9,000 ) $ (3,100 ) Net gain or (loss) $ 1,800 $ (3,300 ) $ (3,100 ) Required: In 2019, Corporation Q sold only one asset and recognized a $4,000 Section 1231 gain. How much of this gain is treated as capital gain, and how much is ordinary
Business
1 answer:
sp2606 [1]3 years ago
7 0

Answer: $4,000 is ordinary income. No Capital gain

Explanation:

In 2017 and 2018, total Section 1231 losses are:

= 3,300 + 3,100

= $6,400

The Section 1231 gain in 2019 falls below the combined losses from the previous years of 2017 and 2018 so will not be counted as a capital gain as those losses are not yet being recaptured.

The entire $4,000 is therefore ordinary income.

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A building acquired at the beginning of the year at a cost of $1,375,000 has an estimated residual value of $250,000 and an esti
BARSIC [14]

Answer:

a. 0.05

b. $68,750

a. $1,150,000

b. 0.1

c. $115,000

Explanation:

Depreciation expense using the double declining method = Depreciation rate x cost of the asset

Depreciation rate = 2 x (1/useful life)  = 2 / 40 = 0.05

The double-declining-balance depreciation for the first year = 0.05 x $1,375,000  = $68,750

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

The depreciable cost = Cost of asset - Salvage value = $1,450,000 - $300,000 = $1,150,000

The straight line rate = 1 / useful life = 1 / 10 = 0.1

The annual straight-line depreciation = $1,150,000 x 0.1 = $115,000

5 0
3 years ago
This model focuses on the practitioner as the agent of the occupational environment,
Ainat [17]

Answer: A) The practitioner incorporating the principles of therapeutic use of self.

Explanation: The therapeutic use of the self is the ability of the therapist to be aware of himself and the patient and take care of what he communicates. It is as important as the techniques and knowledge and often makes the difference between success and failure in a treatment. By intervening therapeutically using our "I", counselling appears as a valuable tool that helps the therapist work more effectively to achieve the ultimate goal with the lowest possible personal cost.

4 0
3 years ago
Midwest Water Works estimates that its WACC is 10.5%. The company is considering the following capital budgeting projects:
krok68 [10]

Answer:

Projects A,B,C,D and E should be accepted

Explanation:

Based on the fact that each of the itemized projects has the same of level of risk as the company's existing assets, we suggest that the firm undertake those projects that gives a return rate which is above the current weighted average cost of capital of 10.5%

In essence,projects A,B,C,D and E should be accepted as they 12%,11.5%,11.2%,11% and 10.7% returns on investment respectively.

Projects F& G would be rejected on the premise that their rates of return are lower than what is currently obtainable in Midwest Water Works.

7 0
2 years ago
Do you think it is possible for an outsider to accurately discern about the underlying cultural values of an organization by ana
Rudiy27

Answer:

From the given variables, an outsider might be able to understand roughly 35% of the organization's culture.

Explanation:

Culture is ultimately a state of mind, a mode of perception and a collective conscious.

Symbols, Ceremonies, dress and other observable aspects of culture reflects a certain degree of the internal culture, yet to understand it full, it is vital to observe the human behavior and the inter relationships within the organization.

Moreover, the power distance between ranks, distribution of authority and responsibilities, reward systems, means of communication and organizational goals  also influences  the culture within a company. These aspects are difficult for an outsider to see as they do not stay inside and get exposed to the internal environment of the organization.

5 0
3 years ago
Assume an economy is currently engaged in free trade but considering implementing a tariff on its main import, athletic shoes. W
UNO [17]

Answer:

Price - increase

Domestic production- increase

Import- reduces

Producer surplus- increase

Explanation:

A tariff is a form of tax on import or export.

When a tariff is imposed on a good , the price of the good increases.

As a result of the tariff , the amount of the goods imported falls as the imported good is now more expensive. The quantity produced by domestic producers increases as consumers would now start demanding for the domestic good. Tariffs are sometimes enacted to discourage importation and encourage domestic production.

As a result of the price increase, producer surplus increases. The increase in price also increases output. The producer surplus is the difference between the price of a product and the least amount the producer is willing to sell his product.

I hope my answer helps you.

7 0
3 years ago
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