Solution-Basis was destroyed in an accident

Basis was destroyed in an accident

Reference no: EM131772831

A business consultant's computer equipment with a $5,000 adjusted basis was destroyed by a flood. In the same year, his business car with a $4,000 adjusted basis was destroyed in an accident. The computer equipment was notcovered by flood insurance. The auto was covered for collision; the insurance recovery was $6,000. Which of the following is true?

A. The consultant has a $1,000 capital gain.

B. The consultant has a $3,000 capital loss.

C. The consultant has a $3,000 ordinary loss

D. The consultant has a $5,000 ordinary loss and a $2,000 capital gain

Reference no: EM131772831

Questions Cloud

Develop and implement procedures : Develop and implement procedures and or/improvements to help Wal-mart in their supply chain security?

Determining case-boost the immune system of hiv : An article in Time magazine (Gorman, 6 February 1995) reported that an advisory panel recommended that the Food and Drug Administration.

Class-ethics are important for all companies and people : Class: ethics are important for all companies and people. What is telling is if the company is truly ethical or just shows a facade of being so.

Make sense to go with a simple moving average : We need our forecasts to be very accurate, so it just doesn't make sense to go with a simple moving average."

Basis was destroyed in an accident : A business consultant's computer equipment with a $5,000 adjusted basis was destroyed by a flood. In the same year, his business car with a $4,000 adjusted.

Predict what major issues the program will be addressing : Business Admin Capstone Discussion 1: Looking Ahead- Predict what major issues this program will be addressing 10 years from now. Explain your rationale.

Calculate the cost per equivalent unit for labor : Calculate the cost per equivalent unit for labor assuming that labor is added uniformly throughout the production process

Discuss what is the shareholders tax basis in the abc corp : After the distribution takes place, what is the shareholder's tax basis in the ABC Corp. stock after the distribution

Traditional structured techniques discussed previously : What do you think that UML will become more popular than the traditional structured techniques discussed previously? If yes then why or why not?

User Account

All Pages

Basis was destroyed in an accident

Reference no: EM131772831

Reference no: EM131772831

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT