Answer:
a. long-term capital gain.
Explanation:
A 1031 exchange allows investors to delay paying taxes when they swap like-kind properties. The basis of this property will start on January 1, 2019, the date the first property was acquired. If the investor sold the property on February 1, 2020, more than a year passed, so this should be taxed as a long term capital gain.
Answer:
C : accept the offer because it will produce net income of $12,600.
Explanation:
In this question we have to compare the cost which is presented below:
In the first case
The variable cost would be
= Number of units buys × variable cost per unit
= 4,200 units × $67
= $281,400
And, the selling cost would be
= Number of units sold × selling price per unit
= 4,200 units × $70
= $294,000
So, the difference would be
= $294,000 - $281,400
= $12,600
Answer:
b. As inherent risk goes up, audit risk goes down.
Explanation:
Inherent risk is the risk which is present before applying any control, and audit risk is the that the auditor expresses inappropiate audit opinion when the financial statements are materialy misstated.
Thus, when the inherent risk is <em>high</em>, the auditor keeps the audit risk at <em>low </em>level to perform more subtantative procedures.
Answer:
On or before April 15, year 2.
Explanation:
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
