Answer:
Capital gains distribution is treated as long term
Capital gain from from redemption is treated as short term
Explanation: Capital gains may be explained as the profit made from the sale of a property or investment. Depending on the holding duration of the stock or bond, a capital gain may be classed as short term is held for below one year or long-term, of held for more than 1 year. However, According to the Internal Revenue service regulation, Capital gains are taxed as long term irrespective of the holding period in which the owner has possessed the fund.
Capital gains redemption however, follows the usual time-line and in this case would be taxed as short-term because the holding period is between July to May, which is a 10 months. Since it hasn't exceeded a year, then, it is classed as short term.
Answer:
$480
Explanation:
Data provided in the question:
Machine Hours Repair Costs
2,400 $6,385
1,200 $3,480
2,000 $5,285
3,400 $8,980
Now,
Machine Hours Repair Costs
Highest 3,400 $8,980
Lowest 1,200 $3,480
Difference 2,200 $5,500
Unit variable cost = $5,500 ÷ 2,200
= $2.5
Total cost at high level = $8,980
Machine hours highest level = 3,400
Also,
Total cost at high level = Fixed cost + Variable cost at highest level
or
$8,980 = Fixed cost + [ $2.5 × 3,400 ]
or
Fixed cost = $8,980 - [ $2.5 × 3,400 ]
= $8,980 - $8,500
= $480
Answer:
the labor rate variance and labor efficiency variance is $2,000 favorable and $3,500 unfavorable
Explanation:
The computation of the labor rate variance and labor efficiency variance is given below;
For Labor rate variance
= $12,000 - (2000 × 7)
= $2000 F
And, the Labor efficiency variance is
= 7 × (2000 - 3000 × 0.5)
= $3500 U
Hence, the labor rate variance and labor efficiency variance is $2,000 favorable and $3,500 unfavorable
Answer:
because no nation's economy can produce all of the goods and services that it needs.
Explanation:
In simple words, International trade refers to the exchange of goods and services that occurs between the nations around the world for over all welfare and development of world economy.One of the major reasons behind such exchange is the opportunity cost of producing the same good differs among nations significantly.
For instance, a product that belongs to the labor intensive industry could be produced in India easily while as technology intensive good is feasible in America.Also due to difference of availability in natural resources some economies might not be able to produce some goods altogether.
Answer: $4,000 is ordinary income. No Capital gain
Explanation:
In 2017 and 2018, total Section 1231 losses are:
= 3,300 + 3,100
= $6,400
The Section 1231 gain in 2019 falls below the combined losses from the previous years of 2017 and 2018 so will not be counted as a capital gain as those losses are not yet being recaptured.
The entire $4,000 is therefore ordinary income.
