1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ryzh [129]
3 years ago
11

Beige Corporation, a C corporation, purchases a warehouse on August 1, 2007, for $1 million. Straight-line depreciation is taken

in the amount of $411,750 before the property is sold on June 11, of the current year, for $1.2 million. What is the amount and character of the gain recognized by Beige on the sale of the realty?
Business
1 answer:
olchik [2.2K]3 years ago
5 0

Answer and Explanation:

The computation of the amount and character of the gain recorded is shown below:

1. Recognized gain would be

= Sales - the cost of the property - recovery cost

= $1,200,000 - $1,000,000 - $411,750

= $611,750

2. Now as per the section 1245 the potential recapture is $411,750

3. Now extra section 291 ordinary income in the case when it is a corporation

= $411,750 ×20%

= $82,350

4. And finally $82,350 would be considered as an ordinary income under section 291 while the remaining balance i.e.

= $611,750 - $82,350

= $529,400

This amount would be considered as a gain under section 1231

You might be interested in
Mistor Co. amended its pension plan on January 2 of the current year. It also granted $600,000 of unrecognized prior service cos
vesna_86 [32]

Answer: $105,000

Explanation:

Given, unrecognized prior service costs granted = $600,000

service years in future = 2,000

service years this year = 350

Mistor's unrecognized prior service cost amortization for the year = (unrecognized prior service costs granted) ÷ (service years in future) ×(service years this year )

= $(600000÷2000×350)

= $105,000

Hence, Mistor's unrecognized prior service cost amortization for the year = $105,000

6 0
3 years ago
How long will it take an investment of $5,000 to grow to $7,500 if it earns simple interest of 10% per year?
Mariana [72]
5.69
What he said, I have to answer just to ask some, hope he correct
7 0
3 years ago
A company estimates that the appropriate discount rate (i.e., the cost of capital) for Project A, Project B, Project C and Proje
aliina [53]

Answer:

a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.

Explanation:

a.

The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.

b.

When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.

c.

The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.

d.

Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.

4 0
3 years ago
Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws?
VARVARA [1.3K]

Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws?

answer:

THE SEC

8 0
2 years ago
You're an entrepreneur and had a great idea to sell shoes that have springs installed in them to make walking easier. However, t
TiliK225 [7]

Answer:

B. There is an increase in income and "spring shoes" are a normal good.

Explanation:

To eliminate the disequilibrium in the market for shoes, spring shoes firstly needs to be seen as a normal product because if it is seen an inferior product then as people's Income rises they woudnt want to buy inferior products because they have the income to buy normal products. As people income rises, since spring shoes is seen as a normal product, then people will buy springshoes

6 0
3 years ago
Other questions:
  • Why do you earn more money using compound interest than you would using simple interest?
    5·1 answer
  • s late at night before your scheduled vacation. You are all packed and ready to go to bed.You get a phone call from the plant as
    7·1 answer
  • gain or loss on the disposal of assets is determined by comparing the disposed asset's book value to the value of any assets rec
    14·1 answer
  • It is common in large breweries for the long-run average total cost to decline as output increases. this indicates that many bre
    10·2 answers
  • Which domain requires annual security awareness training and employee background checks for sensitive positions to help mitigate
    7·1 answer
  • A small creek has flooded, requiring the rescue of one person from a stranded automobile. Electrical service was interrupted for
    15·1 answer
  • Boss Enterprises currently sells its products for per unit. Management is contemplating a ​% increase in the selling price for t
    7·1 answer
  • Sarah has investments in four passive activity partnerships purchased several years ago. Last year the income and losses were as
    13·1 answer
  • Gordon is a new divisional manager at AskSocrates. In reorganizing his division, he must make some decisions regarding the span
    12·1 answer
  • What is the term for an employer's obligation to do something to enable an otherwise qualified person to perform a job? Multiple
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!