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pshichka [43]
3 years ago
9

Loc Nguyen sold his personally owned boat for $6,000. Loc is not self-employed and he did not have any outstanding loans on the

boat. He opened a savings account at his bank with the $6,000. Loc's original basis in the boat is $1,000 which is the amount that he originally paid for the boat. How should Loc classify the $5,000 gain from the sale of his boat
Business
1 answer:
lesantik [10]3 years ago
3 0

Question Completion with options:

Select one:

a. Include the $5,000 in total income on Form 1040

b. Include the $5,000 as a capital gain on Schedule D

c. Include the $5,000 as self-employment income on Schedule C

d. Include the $5,000 as interest income on Form 1040

Answer:

Loc Nguyen should:

b. Include the $5,000 as a capital gain on Schedule D.

Explanation:

Both long-term and short-term capital gains and deductible capital losses are reported on Schedule D of Form 1040.  If the gain from the sale of the boat is a long-term capital gain, it will be subject to the lower capital gain tax rate of up to 20%, unlike the short-term capital gain that attracts a rate of up to 37%.

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Which field of economics deals primarily with the problems faced by​ low-income countries?
Marta_Voda [28]

Answer:

Development economics

Explanation:

Development economics is a field which deals with the problems dealt by low-income countries and low-middle income countries. The focus of development economics is to solve the development problems by using economic tools and to push these low-income countries to start trade with developing or developed countries. Development economics gained popularity, especially after globalisation, because it provided low-income countries with an opportunity to interact with other countries.

3 0
3 years ago
Crane Company adopted the dollar-value LIFO method of inventory valuation on December 31, 2019. Its inventory at that date was $
guajiro [1.7K]

Answer:

See below

Explanation:

Crane corporation

Ending inventory

2019 $1,120,000

2020 $1,271,000/1.08 = $1,176,852

Ending inventory [$1,120,000+ (1,176,852 - $1,120,000)× 1.08]

= [$1,120,000 + $61,400]

= $1,181,400

2021 $1,417,000/1.26 = $1,124,603

2022 $1,623,000/1.31 = $1,238,931

Ending inventory [$1,124,603 + ($114,328 × 1.31)]

= $1,124,603 + $149,770

= $1,274,373

Therefore, the cost of the ending inventory at December 31, 2020 under dollar value LIFO would be $1,274,373

5 0
3 years ago
What happens if the amount of Bad Debt Expense is overstated at year end? A : Net income will be overstated. B : Allowance for D
Yuri [45]

Answer:

D. Net Accounts Receivable will be understated

Explanation:

5 0
3 years ago
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $28,000. The estimated useful life was
jeyben [28]

Answer:

You get the highest net income in year 2 with  <u>Units-of-production  method.</u>

Explanation:

Schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods is attached.  

<u>Straight-line </u>

Depreciation expense 2nd year=$5.000=(Original Value -Residual Value)/Useful life

<u>Units-of-production </u>

Units of Production Rate=2.5=(Original Value -Residual Value)/estimated productive life

Depreciation expense 2nd year= 7250

<u> Double-declining-balance. </u>

Depreciation rate        20,00%        1/useful life *100

Depreciation expense 2nd year= 6720

Download xlsx
6 0
3 years ago
According to maslow, employees motivated by a strong need for recognition and continuously seek credit for contributions to the
Viefleur [7K]
<span>The answer to this question is letter C.
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</span>=> physiological needs are describes as the most basic human physical needs, including food, water and oxygen.
=>belongingness category of need is when there is a  desire to be accepted by one's peer, have friendships, be part of a group, and be loved.<span>
=></span><span>self-actualization is considered as the highest order of needs.</span>
8 0
3 years ago
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