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
Lorico [155]
3 years ago
14

Pedro sells investment land on September 1, 2019. Information pertaining to the sale follows: Adjusted basis $25,000 Selling pri

ce 90,000 Selling expenses 1,500 Down payment 12,000 Four installment payments 15,000 Mortgage assumed by the buyer 18,000 Required: Each installment payment is due on September 1 of 2020, 2021, 2022, and 2023 (ignore interest). Determine the tax consequences in 2019, 2020, 2021, 2022, and 2023. (Do not round intermediate calculations. Round your final answers to nearest whole dollar value.)
Business
1 answer:
bearhunter [10]3 years ago
8 0

The tax consequence in 2019 is $10584 while the tax consequence from 2020 to 2023 will be $13229.

Bases on the information given, the realized gain will be:

= $90000 - $25000 - $1500

= $63500

The gross profit percentage will be:

= 63500/(90000 - 18000) × 100

= 63500/72000 × 100

= 88.19%

The tax consequence in 2019 will be:

= $12000 × 88.19% = $10584

The tax consequence in 2020 will be:

= $15000 × 88.19% = $13229

The tax consequence in 2021 will be:

= $15000 × 88.19% = $13229

The tax consequence in 2022 will be:

= $15000 × 88.19% = $13229

The tax consequence in 2023 will be:

= $15000 × 88.19% = $13229

Read related link on:

brainly.com/question/25301019

You might be interested in
When a company sells multiple products, an increase in total sales always results in an increase in total profits.
nevsk [136]

Hindsight is a wonderful thing in any business, or in life in general. We could make the best business decisions and maximise earnings if we had access to a crystal ball that could tell us exactly how many people would buy our goods.

<h3>What Is Cost-Volume-Profit (CVP) Analysis?</h3>

An approach to determining how changes in variable and fixed expenses impact a company's profit is through cost-volume-profit (CVP) analysis.

Companies can utilise CVP to determine how many units they must sell to attain a specific minimum profit margin or break even (pay all expenditures).

CVP analysis makes a number of presumptions, among them the constancy of the sales price, fixed costs, and variable costs per unit.

Learn more about Cost-Volume-Profit refer:

brainly.com/question/26711135

#SPJ4

5 0
2 years ago
Which of the following statements is correct regarding compensation expense for employers in publicly traded corporations?
Sliva [168]

Answer:

d. Deductible compensation expense must be considered reasonable under the facts and circumstances of the employment.

Explanation:

Elon Musks collected billions of dollars due to the excellent performance of Tesla's stocks. The compensation awarded to the CEO, CFO and maximum three other executives must be reasonable. Performance based compensation is not limited in an amount, instead they are limited on the number of people that receive them.

3 0
3 years ago
In business, which of the following tones should be part of every written communications? a. Funny b.Vague c.Sarcastic d.polite​
dlinn [17]

Answer:

Polite

Explanation:

8 0
3 years ago
Which type of third party plan covers prescriptions for anyone eligible for medicare benefits, including senior citizens?
Citrus2011 [14]
The third party plan that covers prescriptions for those eligible for medicare is usually an insurance plan that has extended health so that after paying a small deductible like $25 then the medicine costs will be reimbursed at the rate of say 80% of their costs.
7 0
3 years ago
Diversification is important and investing because
Lelechka [254]
You don't want all of your eggs in one basket. If one stock and/sector of the market sinks, hopefully it will be offset by your diversification.
6 0
3 years ago
Other questions:
  • You can offer investment products and services only if you are a registered representative of Northwestern Mutual Investment Ser
    6·1 answer
  • Becka borrowed $420 from her cousin at the rate of 8% per year. If the inflation rate was 2.5% that year, what is her cousin's a
    15·1 answer
  • Sheffield Corp. determines that 53000 pounds of direct materials are needed for production in July. There are 3100 pounds of dir
    5·1 answer
  • In general, trademark protection prevents another firm from using the same or a similar name, logo, or other identifying charact
    14·1 answer
  • An aircraft factory manufactures airplane engines. The unit cost (the cost in dollars to make each airplane engine) depends on t
    7·1 answer
  • Tomasini Corporation has provided the following data from its activity-based costing accounting system:
    14·1 answer
  • Prepare the Statement of Cash Flows for Smart Touch Learning for the month ended December 31, 2016 from the provided information
    8·1 answer
  • Self-confident people tend to be willing to take more ________, which helps build more relationships.
    6·1 answer
  • Why do you think Starbucks has been so concerned with social responsibility in its overall corporate strategy
    5·1 answer
  • Read the following statements and decide in which one you think it is ?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!