The equipment was uninsured

Assignment Help Financial Management

Reference no: EM13937234

Jin owned business equipment with a $16,950 adjusted basis and a $7,500 FMV that was destroyed by a tornado. The equipment was uninsured. As a result of this casualty, Jin

A) Recognizes a $7,500 Section 1231 loss.

B) Recognizes a $16,950 Section 1231 loss.

C) Is allowed to deduct a $16,950 ordinary loss.

D) Is allowed to deduct a $7,500 ordinary loss.

Reference no: EM13937234

Questions Cloud

What rate of return would robin earn from her investment : Robin wants to purchase 1,000 shares of Anatop, Inc., which is selling for $5 per share. Anatop does not pay dividends because all earnings are reinvested in the firm to maintain its successful R&D department. How much of her own money must Robin pro..

What is the portfolio weight of each stock : Stock J has a beta of 1.3 and an expected return of 13.66 percent, while Stock K has a beta of 0.85 and an expected return of 10.6 percent. You want a portfolio with the same risk as the market. What is the portfolio weight of each stock?

Calculate gain or loss on disposal : Genetic Insights Co. purchases an asset for $17,136. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, r..

About how cash flows are re-invested : What is the net present value's assumption about how cash flows are re-invested? a. they are reinvested at the IRR b. They are reinvested only at the end of the project c. They are reinvested at the SPR d. They are reinvested at the firm's discount r..

The equipment was uninsured : Jin owned business equipment with a $16,950 adjusted basis and a $7,500 FMV that was destroyed by a tornado. The equipment was uninsured. As a result of this casualty, Jin

Shares of common stock outstanding during calendar year : Ignatius Corporation had 7 million shares of common stock outstanding during the current calendar year. It issued ten thousand $1,000, convertible bonds on January 1. Each bond is convertible into 50 shares of common stock. Ignatius has an effective ..

Compute and characterize lockes gain on sale : Locke sold machinery used in his business for $50,000. He purchased the equipment three years ago for $55,000 and deducted $22,800 MACRS depreciation through date of sale. Compute and characterize Locke's gain on sale.

What can sales reach before they need to add fixed assets : XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are $2,100,000, interest expense $20,000 and depreciation 30,000. Tax rate 40%. XYZ is now evaluating the purchase of a new machine for $210,000 installed with no NWC chang..

The standard deviation on stock is expected return : Consider the following information on Stocks I and II: Rate of Return if State Occurs State of Economy / Probability of State of Economy / Stock I / Stock II. The standard deviation on Stock I's expected return Is ? percent and the Stock I beta is ?...

User Account

All Pages