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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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Answer:

b. supply of dollars in the market for foreign-currency exchange shifts left

Explanation:

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8 0
3 years ago
Accounts and Notes Payable On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approac
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Answer and Explanation:

The journal entries are shown below:

On Feb 15

Purchases     $800,000

      To Accounts payable    $800,000

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Accounts payable $800000

      To Notes payable  $800000

(Being the issuance of note is recorded)

On Sept 30

Notes payable    $800,000

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            To Cash  $840,000

(Being the payment of note and interest is recorded)

The interest expense is computed below:

= $800,000 ×  10% × 6 months  ÷ 12 months  

= $40,000

The six months is calculated from Mar 31 to Sep 30

Only these entries are passed

5 0
3 years ago
From the list​ below, select the variable that will cause the demand curve to​ shift: A. The number of firms in the market B. Th
butalik [34]

Answer:

Option (C) is correct.

Explanation:

Consumer income is one of the main determinant of demand. Consumer income is related with the demand of normal and inferior good.

If there is an increase in the income of a consumer then as a result the demand for a normal good increases and shifts the demand curve rightwards.

If there is a fall in the income of the consumer then as a result the demand for a normal good also decreases and shifts the demand curve leftwards.

Alternatively, the consumer income is inversely related with the demand for inferior goods.

4 0
3 years ago
A strategy is: Multiple Choice an action plan to maximize rewards in the current period in return for big risks. a procedure for
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Answer:

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3 years ago
Marilyn Simms died with a $200,000 life insurance policy. Her husband, Jack, was the primary beneficiary and their children, Mim
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Answer:

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Explanation:

Data provided in the question  

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The primary beneficiary = Jack

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8 0
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