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Alenkasestr [34]
3 years ago
11

Charlotte purchases a residence for $105,000 on April 13, 2010. On July 1, 2018, she marries Howard and they use Charlotte's hou

se as their principal residence. On May 12, 2020, they sell their home for $390,000, incurring $20,000 of selling expenses, and they purchase another residence costing $350,000. What is their realized and recognized gain?
Realized Recognized
a. $265,000 $15,000
b. $265,000 $45,000
c. $265,000 $ 0
d. $285,000 $65,000
e. $285,000 $ 0
Business
1 answer:
Maru [420]3 years ago
6 0

Answer: A. $265,000 $15,000

Explanation:

Their realized and recognized gain will be calculated as:

Realized gain will be gotten as:

= Sale value of home - Purchase value of home - selling expenses

= $ 390,000 - $105,000 - $20,000

= $265,000

Also, the recognized gain equals to $15,000. Therefore, the correct option is A "$265,000 $15,000".

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A property contains 2.4 acres and is worth: A. $155,000 as single home site B. $85,000 per unit as a site for a duplex and C. $6
puteri [66]

Answer:

The best use is the duplex

Explanation:

The first possible use value, as a single home, is already given in the question: $155.000.

For the retail site, we have $60,000 per acre and 2.4 acres:

$60,000 x 2 + $60,000 x 0.4

=$144,000

A duplex has two units, and the value is $85,000 per unit:

$85,000 x 2 = $170,000

Therefore, the duplex gives the highest possible value of use to the 2.4 acres.

7 0
4 years ago
Suppose there are three factories in Macroland and the following occurred in 2019: Metal, plastic and a car factory. Metal facto
BARSIC [14]

Answer:

$1120

Explanation:

The computation of the GDP is shown below:

Y = C + I + G + X

Here Y denotes the GDP

C denotes the consumption = $500 - $80 - $20 = $400 and  700 - 50 = $650

I denotes the investment  = $

G denotes the government purchase = $20

X denotes the net exports = $50

So,  

Y = $400 + $650 + 0 + $20 + $50

= $1120

8 0
3 years ago
15. Your company contracted for a 30-second commercial (an advertisement) that aired during the Super Bowl at a cost of $1.2 mil
Diano4ka-milaya [45]

Answer: D) It increases liabilities and decreases stockholders' equity by $1.2 million each.

Explanation:

Even though the company has not paid for the advertisement, the expense has already been incurred and by the Accrual principle of accounting it needs to be recorded.

It will therefore be recorded as an expense which will reduce the Income for the year which is a Stockholder equity account so therefore it will reduce the Stockholder account by $1.2 million.

Because the company has not yet paid for the advert, the amount have to be recorded as a liability to the company so liabilities will increase by $1.2 million.

4 0
3 years ago
If an economy at full employment experiences a fall in aggregate demand, then what should the government do to restore the econo
Eddi Din [679]

Answer:

The government should engage in expansionary fiscal policy.

Explanation:

If there is a fall in the aggregate demand in an economy then this will restore by implementing the expansionary fiscal policy and the full employment level is achieved.

Expansionary fiscal policy states that a government of this nation should reduces taxes and increases its spending for inducing the aggregate demand to boost up. Lower taxes would increase the disposable income of the consumers and hence, the demand for goods and services increases.

These changes would increase the aggregate demand and shifts rightwards. This will maintain the full employment level in this economy.

6 0
3 years ago
Kevin is the CFO of Nana Inc. Kevin said the firm earned $13 million last year and maintains a 20% dividend payout ratio. The co
Svetlanka [38]

Answer:

Earnings per share  = $6.5

Explanation:

<em>Earning per share (EPS)</em><em> is calculated as the the value of earning available to shareholders divided by the number of shares outstanding. Earnings available to ordinary shareholders is the residual earnings after all other priority claims of other investors have been settled.</em>

Earnings per share (EPS)

= Total earnings available to ordinary shareholders / Number of shares outstanding

= $13,000,000/2,000,000 units

=$6.5

The amount of earnings per share generated by Nana Inc. =$6.5

6 0
3 years ago
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