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anzhelika [568]
3 years ago
11

A worthless security had a holding period of six months when it became worthless on December 10, 2020. The investor who had owne

d the security had a basis of $20,000 for it. Which of the following statements is correct?
a. The investor has a long-term capital loss of $20,000.
b. The investor has a short-term capital loss of $20,000.
c. The investor has a nondeductible loss of $20,000.
d. The investor has a short-term capital gain of $20,000.
Business
1 answer:
mariarad [96]3 years ago
6 0

Answer: B. The investor has a short-term capital loss of $20,000.

Explanation:

A short-term loss occurs when a deficit is realized when there's a sale of an asset which has been held by the person for a period of one year or less.

In this case, since the security was worthless, it's a loss and was also help for six months which is less than one year, then it's a short term capital loss.

Therefore, the correct option is B

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Pharoah Company purchased a new machine on October 1, 2019, at a cost of $138,000. The company estimated that the machine will h
andre [41]

Answer:

A. $29,000

B. $19,720

C. $69,000

$34,500

Explanation:

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

($138,000 - $22,000) / 4 = $29,000

Unit of activity = Cost of asset - Salvage value) / Total working hours

= ($138,000 - $22,000) / 10000 = $11.6

$11.6 × 1700 = $19,720

Double declining method = Depreciation factor × net book value

Depreciation factor = 2 × (1/useful life)

2(1/4) = 0.5

0.5 × $138,000 = $69,000

Net book value = $138,000 - $69,000 = $69,000

Depreciationexpense for the second year = 0.5 × $69,000 = $34,500

I hope my answer helps you

5 0
3 years ago
One difference between services in the production of goods is that the services are consumed blank where as good as can be blank
Blizzard [7]

One difference between services in the production of goods is that the services are <u>consumed by the consumer instantly </u> where as good as can be<u> stored  by the consumer </u>

Explanation:

Goods and services are two important types of purchases that people make.

A good is termed as  tangible or physical product that people can  buy, tangible meaning something you can touch,and store for later use

A service is said to be  intangible, which can't be physically touched or stored.You can only pay for a service

The term Perishability means that services cannot be stored for later sale or use. In other words, services cannot be inventoried. This is one of the most significant characteristics of services, and it has a major impact on financial results of a company

One difference between services in the production of goods is that the services are <u>consumed by the consumer instantly </u> where as good as can be<u> stored  by the consumer </u>

8 0
2 years ago
The real costs of quality:A. are incurred in the quality control department. B. are frequently overstated in an organization. C.
mars1129 [50]

Answer:

E. rise significantly as defects increase in the finished product.

Explanation:

Real Cost of Quality

This cost is concerned with preventing, finding and correcting product issues relating to quality. It is the total amount used is solving quality related defects. It is the extent to which resources are used to prevent poor quality that are below the standards of the organization. The cost tend to rise whenever there's a rise in the defects found in finished products. This is because it is the cost that is used in correcting or remediating the defects.

5 0
3 years ago
How do you send pictsher to frinds<br>​
BaLLatris [955]
Go to photos, press “select” and then press the picture you want to send then press the button that looks like a box that has an arrow coming out of it. After that, press “messages” and then type in the person that you want to send it to.
3 0
3 years ago
Customers arrive at a common queue at the coffee station with two identical coffee machines in a busy mall at the rate of 48 per
lutik1710 [3]
I am going to say b but idk
7 0
3 years ago
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