BUSINESS COLLEGE

Dorothea orginally sold her home for $92,000. At that time, her adjusted basis in the home was $95,000. Five years later, she repossessed the home when the balance of the note was $87,000. She resold it within one year for $100,000. Original sale expenses were $1,150 and reslae expenses were $1,350. Repossession costs were $2,900. She incurred $1,100 for improvements prior to the resale. What is Dorothea's recomputed gain?

Answers

Answer 1
Answer:

Answer:

$3,500

Explanation:

The computation of Dorothea's recomputed gain is shown below:-

Particulars                                                Amount

Initial Sale price                                        $92,000

Less: Adjusted Cost of Home                ($95,000)

Less: Original Sale Expenses                  ($1,150)

Loss from 1st-time sale                             $4,150

Resold sale price                                     $100,000

Less: Repossessed Cost                          ($87,000)

Less: Improvements Costs prior to

Resale                                                       ($1,100)

Less: Repossession Costs                     ($2,900)

Less: Resale Expenses                           ($1,350)

Gain from Resale of Home                      $7,650

Less: Loss from 1st-time sale                  ($4,150)

Gain from Resale of Home                      $3,500

Related Questions

The forecasting technique that pools the opinions of a group of experts or managers is known as: market survey. management coefficients. the expert judgment model. multiple regression. jury of executive opinion.
Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sales $ 605,000 Cost of goods sold 425,000 Salaries 115,000 ($25,200 is indirect) Utilities 14,500 ($5,800 is indirect) Depreciation 48,600 ($17,500 is indirect) Office expenses 28,200 (all indirect) 1. Prepare a departmental income statement for 2019. 2.
Feb 26- received $300 from a customer as a down payment on work to be undertaken on repairs to a cell. Is that unearned revenue.
Apex Company produces artificial Christmas trees. A local shopping mall recently made a special order offer; the shopping mall would like to purchase 200 extra-large white trees. Apex Company is currently producing and selling 20,000 trees; the company has the excess capacity to handle this special order. The shopping mall has offered to pay $120 for each tree. An accountant at Apex Company provides an estimate of the unit product cost as follows:Direct materials $50.00Direct labor (variable) $3.50Variable manufacturing overhead $1.00Fixed manufacturing overhead $4.00Total unit cost $14.50This special order would require an investment of $10,000 for the molds required for the extra-large trees. These molds would have no other purpose and would have no salvage value. The special order trees would also have an additional variable cost of $6.00 per unit associated with having a white tree. This special order would not have any effect on the company's other sales.Should Apex accept the order? What is the effect on net operating income of accepting the order?
The current exchange rate of dollars to euros is $18/€11.The risk free rate for dollars is r = 3%. The risk free rate for euros is re = 4%. The dollar denominated price of an option to purchase €22 for $32 in six months is $5.09. Determine the euro denominated price of a put option to sell $22 in six months using the given strike. (Hint: the strike comes from the statement €22 for $32.)

Find the account balance at the end of the second period for $3,000.00 invested at 9% compounded quarterly.

Answers

Answer:

A = $3136.51875

Explanation:

Given that :

The principal = $3,000.00

Rate = 9%

Time = 6 months

Since the amount is compounded quarterly;

r = 9/4 = 2.25 %

t = 6 months = 2 quarter

Using the formula:

A = P(1+r/100)^t

A = 3000.00(1+ 2.25/100)^2

A = 3000.00( 1+ 0.0225)^2

A = 3000.00 (1.0225)^2

A = 3000.00 (1.04550625)

A = $3136.51875

Which economic system has no formal government ​

Answers

Market economic system

Calculate the annual cash flows of a $100,000, 10-year fixed-payment deferred annuity earning a guaranteed 3.6 percent per year if annual payments are to begin at the end of year 4 (beginning of year 5). (Hint: Grow the original investment for 4 years and then all payments are paid at the beginning of the year.)

Answers

Answer:

$13,437.53

Explanation:

Calculation for the annual cash flows

First step is to calculate the value of annuity after 3 years from today

Using this formula

Value of annuity = Present value*(1+Rate)^Time

Let plug in the formula

Value of annuity = $100,000*(1 +0.036)^3

Value of annuity = $100,000*1.111934656

Value of annuity = $111,193.4656

Second step is to calculate the present value annuity factor

Using this formula

PVIFA = [1 – (1 + Rate)-Number of periods]/ Rate

Let plug in the formula

PVIFA = [1 – (1 + 0.036)-10]/ 3.6%

PVIFA = 8.27484404349

Last step is to calculate the annual cash flows

Using this formula

Annual cash flows = Value of annuity/ Present value annuity factor

Let plug in the formula

Annual cash flows = $111,193.4656/ 8.27484404349

Annual cash flows = $13,437.53

Therefore the annual cash flows will be

$13,437.53

Lyons Company deducts insurance expense of $210,000 for tax purposes in 2018, but the expense is not yet recognized for accounting purposes. In 2019, 2020, and 2021, no insurance expense will be deducted for tax purposes, but $70,000 of insurance expense will be reported for accounting purposes in each of these years. Lyons Company has a tax rate of 40% and income taxes payable of $180,000 at the end of 2018. There were no deferred taxes at the beginning of 2018. Reference: Ref 19-5 What is the amount of income tax expense for 2018? A. $180,000 B. $210,000 C. $264,000 D. $252,000

Answers

Answer:

The total income tax expense for 2019 =152.000. Is not available in the options given by the exercise.

Explanation:

  • Tax on insurance expense deductible for accounting purposes in 2019= 70000*40%=28.000

  • Income tax expense for 2019 = 180.000-28.000=152.000

If you earn an annual interest rate of 8.9 percent, how many years will it take to double your money

Answers

Answer:

Every 7.86 years the investment doubles.

Explanation:

Giving the following information:

Interest rate= 8.9% compounded annually

To determine the number of years to double the money, we can use the rule of 70:

The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double.

Number of Years to Double= 70/Annual Rate of Return

Number of Years to Double= 70/8.9

Number of Years to Double= 7.86 years

Every 7.86 years the investment doubles.

Denver company uses a job costing system. The work in process inventory on december 31 consisted of job no. 173 with a balance of​ $66,200. Job no. 173 has been charged with manufacturing overhead costs of​ $20,000. Denver allocates manufacturing overhead costs at a rate of​ 50% of direct labor cost. What was the amount of direct materials charged to job no.​ 173?

Answers

Calculation of amount of direct materials charged to job no. 173:


It is given that the work in process inventory on December 31 consisted of job no. 173 with a balance of $66,200.

Job no. 173 has been charged with manufacturing overhead costs of $20,000. Denver allocates manufacturing overhead costs at a rate of 50% of direct labor cost. It means the direct labor cost would be 20,000/50% = $40,000


Now we can calculate the amount of direct materials charged to job no. 173 as follows:

Direct material Cost =   Total Cost allocated to Job – Direct Labor Cost – Manufacturing Overhead Cost

= 66200-40000-20000

= 6200


Hence, the amount of direct materials charged to job no. 173 is $6,200

Final answer:

The Denver company's job costing system showed that job no. 173 in the work in process inventory had a balance of $66,200. Direct labor was calculated by dividing manufacturing overhead of $20,000 by 50% to arrive at $40,000. The direct materials cost, which is obtained by subtracting direct labor and manufacturing overhead from the total job cost, amounted to $6,200.

Explanation:

The Denver company's problem involves understanding their job costing system, particularly regarding job no. 173. They have a working process inventory at a balance of $66,200. The manufacturing overhead costs, which are 50% of the direct labor costs, have been charged at $20,000 for this job. To find the direct materials costs, we first need to calculate direct labor cost. Given that manufacturing overhead is 50% of direct labor, it means that direct labor costs would be $20,000 divided by 50% or $40,000. The total job cost is composed of direct labor, direct materials, and manufacturing overhead. So, to determine the direct materials charged to this job, we subtract the known costs (direct labor and manufacturing overhead) from the total job cost; $66,200 (total cost) - $40,000 (direct labor) - $20,000 (manufacturing overhead) equals $6,200. Therefore, the amount of direct materials charged to job no. 173 is $6,200.

Learn more about Job Costing System here:

brainly.com/question/32819749

#SPJ6
Other Questions
Define and explain SMART?
With regard to a futures contract, the long position is held by a. the trader who plans to hold the contract open for the lengthiest time period. b. the trader who commits to delivering the commodity on the delivery date. c. the trader who bought the contract at the largest discount. d. the trader who has to travel the farthest distance to deliver the commodity. e. the trader who commits to purchasing the commodity on the delivery date.
A company plans to enclose three parallel rectangular areas for sorting returned goods. The three areas are within one large rectangular area and yd of fencing is available. What is the largest total area that can be​ enclosed
Consumption expenditures $800Investment expenditures 200Government purchases 300Exports 100Imports 200Wages 800Refer to Table above. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equalsA) $2,200.B) $1,600.C) $1,400.D) $1,200