Answer:
correct option is C. $250,000
Explanation:
given data
sold the home and gain = $300,000
to find out
amount of the gain allowed to exclude from gross income
solution
we know that Michael owned the property for the 10 years
so here Michael is not allowed to exclude the gain = 10 % that is $30,000
and The maximum gain exclusion permitted = $250000
so here Michael will recognize $50,000 because amount exceed $250,000 for a single taxpayer and exclusion of gain on sales of property tax payer need to own and occupy the property as principle residence for the 2 out of 5 year immediately preceding the sales
so here correct option is C. $250,000
Answer:
A) The account receivables turnover is 15, and B) the number of days sales in receivables is 24.3 days.
Explanation:
A) FORMULA FOR ACCOUNT RECEIVABLES TURNOVER =
NET SALES / AVERAGE ACCOUNT RECEIVABLES
Given information -
Net sales = $1500,000
Average account receivables = $100,000
Putting the values in formula -
= $1500,000 / $100,000
= 15
B) FORMULA FOR NUMBER OF DAYS SALES IN RECEIVABLES =
365 / ACCOUNT RECEIVABLES TURNOVER
= 365 / 15
= 24.3 DAYS
Solution:
Annual coupon payment of the bond is $80
At the beginning of the year, remaining maturity period is 2 years.
Price of the bond is equal to face value, i.e. the initial price of the bond is $1000.
New price of the bond = present value of the final coupon payment + present value of the maturity amount.
New price of the bond = 
where, r is the yield to maturity at the end of the year.
Substitute 0.06 for r in the above equation,
Therefore new price of the bond is = 
= 
= $ 1010.87
Calculating the rate of return of the bond as
= 0.09887
Therefore, the rate of return on the bond is 9.887%
≈ 10 %
Answer:
$6,689
Explanation:
As we know that the inventory should be recorded at cost or net realizable value which ever is lower
Particulars Item Units Unit Cost Net Realizable Value LCNRV
Minolta 7 $175 $157 $157
Canon 11 142 176 $142
Vivitar 14 130 111 $111
Kodak 17 120 132 $120
So, the amount of ending inventory is
= 7 units × $157 + 11 units × $142 + 14 units × $111 + 17 units × $120
= $1,099 + $1,562 + $1,988 + $2,040
= $6,689
<span>A corporate bond backed only by a company's promise to pay is called a debenture bond. There is no collateral offered and the parties are acting on faith and predictions in this transaction.</span>
