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
During August 2018​, Bingham Company recorded the​ following: bullet Sales of $ 68 comma 900 ​($ 55 comma 000 on​ account; $ 13
Paraphin [41]

Answer:

Explanation:

Direct Method  

Aug

a

Dr Accounts Receivable 55,000

Dr Cash 13,900

   Cr Sales  68,900

b

Dr Cash 45,100

    Cr Accounts Receivable  45,100

c

Dr Bad Debt Expense 1,680

    Cr Accounts Receivable  1,680

d

Dr Accounts Receivable 300

    Cr Bad Debt Expense  300

Dr Cash 300  

   Cr Accounts Receivable  300

Allowance Method  

a

Dr Accounts Receivable 55,000

Dr Cash 13,900  

    Cr Sales  68,900

b

Dr Cash 45,100

    Cr Accounts Receivable  45,100

c

Dr Allowance for Doubtful debts 1,680  

   Cr Accounts Receivable      1,680

d

Dr Accounts Receivable 300  

   Cr Allowance for Doubtful debts  300

Dr Cash 300  

    Cr Accounts Receivable 300

8 0
3 years ago
The main job of an editor is to do
Kobotan [32]

Answer:

b assign stories to be covered

3 0
3 years ago
Knowing yourself is the basis for all steps in career planning. is this statement true or false?
Fynjy0 [20]

Of course, the answer for this is <u>TRUE!</u> Career planning needs basis and the best basis you could have is knowing yourself.

How to know yourself as a basis for career planning? You must answer these questions about you:

- Who are you and what do you want to become?

- What are your skills and talents?

- What is your educational background?

- What are your dreams and ambitions?

Among the steps in career planning are:

  1. Assessing your abilities, interests, values, and personality to learn more about yourself.

  2. Knowing what you desire by determining where, how, and how much money you need to live and survive.

  3. Making preparations for an interest-based career will help you get ready for a career.

  4. Discovering job trends, transferrable skills, and professional growth will help you maintain your career.

Learn what mentors should teach a recent graduate about career planning if the recent graduate's mentor is explaining the importance of career planning: brainly.com/question/28275628

#SPJ4

3 0
1 year ago
After a prolonged period of high inflation the government of Atlantia decides to set a target of 0% inflation going forward. As
s2008m [1.1K]

The best support against a 0% inflation target given by the economic literature is c. A 0% inflation target could lead to deflation.

<h3>Why is a 0% inflation target risky?</h3>

If 0% inflation is targeted, the policy might be so effective that inflation becomes negative and deflation happens.

When deflation happens, the economy will experience hardships with lower production levels that will impact other sectors of the economy.

Options for this question include:

a. It is undisputed that too little inflation interferes with the downward adjustment of real wages.

b. Moderate to high inflation is popular among consumers.

c. A 0% inflation target could lead to deflation

Find out more on deflation at brainly.com/question/13562161.

#SPJ12

6 0
2 years ago
Depreciation expense is added back to net income when preparing the cash flow from operating activities section because deprecia
luda_lava [24]

Answer:

Depreciation expense is added back to net income when preparing the cash flow from operating activities section because depreciation represents a non cash reduction to net income. Depreciation is a non cash reduction because it notes down the the reduction in the value of an asset due to use as an expense and because the company isn't making any cash transactions due to depreciation of assets therefore it is a non cash expense and this is why it is added back to net income when preparing cash flow from operating activities.

Explanation:

4 0
3 years ago
Other questions:
  • Anticipating the outcome of a peg, economists believe the stable condition is a situation in which combinations of investor beli
    14·1 answer
  • If during the signing appointment the borrower divulges that the property being financed is an investment property, while the lo
    13·1 answer
  • What is Pangaea? Please explain!
    8·2 answers
  • Among United States' major trade partners in 2014, a trade ______ occurred only with _____. The United States also had the large
    7·1 answer
  • The U.S. dairy cow industry produced milk from just over – million cows in 1924. Today, it relies on just under – million. And y
    7·1 answer
  • You have recently accepted a position with Vitex, Inc., the manufacturer of a popular consumer product. During your first week o
    11·1 answer
  • Edwards is the head of the procurement department at FreshDelights, a frozen yogurt chain. Anticipating a reduction in the deman
    11·1 answer
  • Shrimp Galore, a shrimp harvesting business in the Pacific Northwest, has a 30-year loan on its shrimp harvesting boat. The annu
    12·1 answer
  • Your credit card as a credit limit of $1,000 in your credit card company reviews your credit line every six months they will not
    9·1 answer
  • The delta of a call option on a non-dividend-paying stock is 0.4. What is the delta of the corresponding put option?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!