This year, Barney and Betty sold their home (sales price $750,000; cost $200,000). All closing costs were paid by the buyer. Barney and Betty owned and lived in their home for 18 months. Assuming no unusual or hardship circumstances apply, how much of the gain is included in gross income
Answers
Answer: $550,000
Explanation:
From the question, we are informed that Barney and Betty sold their home (sales price $750,000; cost $200,000) and that all the closing costs were paid by the buyer.
Since no unusual or hardship circumstances apply and all the closing stocks were paid by the buyer, the amount of the gain that will be included in gross income will be:
= $750,000 - $200,000
= $550,000
Related Questions
Exercise 23-21 Emeric and Ellie’s Painting Service estimates that it will paint 15 small homes, 10 medium homes, and 3 large homes during the month of June 2017. The company estimates its direct labor needs as 40 hours per small home, 76 hours for a medium home, and 134 hours for a large home. Its average cost for direct labor is $29 per hour. Prepare a direct labor budget for Emeric and Ellie’s Painting Service for June 2017.
Type the correct answer in the box. Spell all words correctly.Which process does a court use to select a jury?The court selects a jury from a jury pool through a process known as _____.
In the current year, Tim sells Section 1245 property for $28,000 that he had purchased 6 years ago. Tim has claimed $7,000 in depreciation on the property and originally purchased it for $20,000. How much of the gain is taxable as ordinary income
Which of the following measures the percentage change in earnings before interest and tax(or operating cash flow) associated with a given percentage change in sales? A) Degree of financial leverage B) Degree of operating leverage C) Degree of total leverage D) Degree of weighted averageWhat does P/E Ratio of a 10 indicate?a. It would take 10 years for an investor to recover his or her initial investmentb. The firm will pay a dividend of $10 per share.c. The value of the stock will be 10 times the initial investment at the time of maturity.d. An investor would receive 10 percent of the total earnings of the firm, at the time of liquidation
Answers
The most significant constraint for a project is the availability of the right resources at the right time.
What are Resources?
A resource is an actual thing that people need and appreciate, including air, water, and property. A resource is classified as renewable or nonrenewable when it can replace at the pace it is utilized up, whereas an exhaustible resource seems to have a limited quantity. Timber, wind, and solar power are examples of renewable energy sources, whereas gas and coal are examples of non-renewable resources.
A resource can be Natural and Human-made. Also, natural resources can be .
1. Biotic and Abiotic
2. Renewable and Non-renewable
3. Potential, developed, and stock
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Answers
Answer:
(A) sales revenue: understated
gross profit: understated
(B) net income: understated
(C) Retained Earnings : understated
Unearned Services: overstated
Explanation:
(A) sales revenue will not represent the real sales attributable for the period. It will be 2,000 lower than it should be.
Ths will make gross profit be understated as well as is the difference between the sales and the COGS
(B) net income is understated as it do not include a revenue for 2,000 thus, is lower.
(C) unearned services is overstated has it should decrease by 2,000
RE is understate as will increase by the 2,00 additional net income.
Answers
Answer:
Cost of Equity 8.794%
Explanation:
We can solve for the cost of equity using the CAPM
risk free 0.0291
premium market = market rate - risk free 0.071
beta(non diversifiable risk) 0.88
Ke 0.09158 = 9.158%
Or using the gordon dividend grow model
D= 3.57
return = ?
growth 0.0325
stock = 68.91
we solve for return:
return = 0,08430670 = 8.43%
Now we have two diferent rates, so we can do an average to get the best estimate cost of equity
(9.158 + 8.43)/2 = 8.794%
Final answer:
The company's cost of equity, based on provided data points and the Capital Asset Pricing Model (CAPM), is calculated to be 9.14% annually.
Explanation:
Cost of equity is typically estimated using the Capital Asset Pricing Model (CAPM). Under the CAPM, the cost of equity is a function of the risk-free interest rate, the equity's beta, and the expected market risk premium. In this case, we can substitue the given values into the CAPM equation, which is: Cost of Equity = Risk-free rate + Beta * Market Risk Premium. Therefore, the company's cost of equity can be calculated as: Cost of Equity = 2.91% + 0.88 * 7.10% = 9.14%. As for the dividends, they are growing at a rate of 3.25% annually, but they are not directly contributing to the company's cost of equity.
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b. the ability to create a valued product or service
C. Skills that allow them to solve problems in life
d. all of the above
Answers
Answer: D. All of the above.
Explanation:
Answer:
its d
Explanation:
hope this helps
Answers
Answer:
September 11 2017
Dr Cash 600
Cr Sales revenue 600
(to record sales revenue on cash)
Dr Cost of good sold 370
Cr Inventory 370
(to record cost of good sold)
Dr Warranty expenses 54
Cr Warranty liabilities 54
(to accrue for warranty liabilities)
Jul 24 2018
Dr Warranty liabilities 42
Cr Inventory 42
(to record warranty services provided which was accrued)
Explanation:
11 Sep 2017:
- As sell of $600 is made on cash with the cost of good sold is $370, we Dr Cash 600 and Dr Cost of good sold 370 to record increase in cash and in Cost of good sold; and Cr Sales 600 and Cr Inventory 370 to record increase in sales and decrease in Inventory delivered.
- Warranty expenses should be recorded at the time to ensure matching of cost and revenue. Warranty expenses is estimated at 9% of sales, so it will be 9% x 600 = $54. Expenses is recorded and liabilities is accrued.
Jul 24 2018:
Warranty liabilities which was accrued actually occurs. So we Dr Liability by the expenses actually incurred and Cr Inventory consumed for the warranty services $42.
b. the incoming cash and outgoing cash
c. the assets purchased with cash contributed by the owner and the cash spent to operate the business
d. the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services
Answers
Answer: D) the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services
Explanation:
The profit is the difference between the income and the expenses as:
Profit = Income - expense
Income is money that one earn profit in their business and expenses are the money which we spend. And your total income is your revenue. And if the number is in positive value then, it makes profit. Therefore, (D) is the correct option.
Final answer:
Profit, in financial terms, is the monetary gain realized when the amount earned from a business activity (typically selling goods or services) exceeds the costs, overhead, and taxes necessary to sustain the activity. This is represented by option D in your query. The formula for profit is: total revenue - total costs.
Explanation:
In the context of business, 'Profit' is mentioned as the difference between the amounts received from customers for goods or services and the amounts paid for the inputs used to provide those goods or services. This definition is represented by option D in your question. To give an example, if you run a candy shop and you sell $500 worth of candies in a day, but the candies’ original cost is $200, and you have spent an additional $50 on operation costs, your profit for the day would be: $500 (amount received from sales) - $200 (cost of candies) - $50 (operation cost) = $250. This is known as Net Profit.
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