Answer:
a. $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.
b. $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.
Explanation:
Note: This question is not complete as part 'a' of the requirement is omitted. The complete question with the part 'a' of the requirement is therefore provided before answering the question as follows:
Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses.
Year 1 $ (12,000) Net Section 1231 loss
Year 2 10,500 Net Section 1231 gain
Year 3 (14,000) Net Section 1231 loss
a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
Explanation of the answer is now provided as follows:
When section 1231 losses exceed section 1231 profits in the prior five years, the excess loss (unapplied loss) is applied against the current year's section 1231 gain.
The amount that is reported as ordinary income is the amount of the loss that is applied against the current year's section 1231 gain.
Long-term capital gain is the excess of the current year's section 1231 gain over the the recaptured section 1231 loss from the prior five years.
You have to start with the earliest year to apply section 1231 losses from the previous five years to the current year's section 1231 gain.
Therefore, we have:
a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
As a result of the loss from the previous year that is applied to the extent of $7,500, the whole of the $7,500 net Section 1231 gain will be recorded as ordinary gain.
Therefore, $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.
b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
Unapplied losses in previous years can be calculated as follows:
Details Amount ($)
Net Section 1231 loss in Year 3 (14,000)
Net Section 1231 gain in Year 4 7,500
Net Section 1231 loss in Year 1 (12,000)
Net Section 1231 gain in Year 2 10,500
Unapplied losses in previous years (8,000)
Because there are unapplied losses of $8,000 from previous years, $8,000 will be reported as ordinary gain.
Therefore, the amount to be reported as capital gain can be calculated as follows:
Amount to be reported as capital gain = Gain in Year 5 – Amount to be reported as ordinary gain = $9,000 - $8,000 = $1,000
Therefore, $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.
Answer:
11.2
Explanation:
Your formula would be I = Overall market increased * Beta
"I" being Fords increase
so just plug in and solve
So your volatility would be 11.2
Answer: $129,500
Explanation:
According to the Accrual Basis in Accounting, revenue and expenses should only be recognised when goods have been delivered.
On the December 31, 2020 Sandra's Boutique had 1,850 gift certificates outstanding but these had been sold already to people during the year for $70.
This means that they have been paid for a service that they have not given (they provide the service when the GIFT certificate is renewed).
They cannot therefore recognize the revenue as Revenue yet and have to defer it.
The amount to be Deferred will therefore be,
= 1,850 * $70
= $129,500
Answer:
Explanation:
check the file attached for full explanation
Answer:
According to the OECD the total expenditure of the US government, including state and local is about a 38% of the GDP.
Explanation:
The federal government expends almost the 55% of the total and the remaining 45% the state and local government.
B. a reduction of expenditures.
C.another financing source.
D. matured interest payments.
Answer: C. Another Financing source
Explanation:
The fund was received for the purpose of debt service. Debt service means repayment of loans. The funds were utilized for debt servicing. Hence, the amount should be reported as another financing source.
The objective of the funds was to repay loans and the amount was received for repayment. This amount was used to finance their debt service. So it was a financing source for the company.
Answer:
True
Explanation:
As long as the statement holds that ''each company's profit depends on whether Little Kona enters...'' and the response of the existing monopoly to charge a low price to keep its market share; then both little Kona and Big Brew have a dominant strategy in this game.
They both will become a duopoly which implies that there will be two players in the industry and the price of Big Brow will be greatly influenced by the presence of Little Kona. Big Brow could charge as high as $8 if Little Kona is absent but as low as $2 if Little Kona is enters the industry.
Obviously they both have a dominant strategy, considering further that the entrance of Little Kona changes the industry structure from monopoly to duopoly