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Question - Angela, who is a single individual, rented an apartment on 72nd Street in New York City ("the apartment") on January 1 of Year 1. This was the only residence in which she lived. Two years later (January 1 of year 3) Angela purchased the same apartment from the owner for $1,200,00. 6 months later (July 1 of Year 3) Angela was told by her physician that she should move out of New York City permanently due to an underlying raspatory medical condition which made the New York City air quality and population density particularly dangerous for Angela. As a result, Angela put her apartment on the market and moved immediately to Arizona. The apartment sold on January 1 of Year 4 for $1,420,000 sale price, and Angela incurred $30,000 of selling expenses. How much income, if any, will Angela recognize from the sale of the apartment?
a. $0
b. $65,000
c. $95,000
d. $220,000
e. None of a-d is an amount Angela will recognize
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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Distinguish between liquidity and profitability.
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