What is the character of abel income

Assignment Help Accounting Basics
Reference no: EM132796035

Problem 1: Abel is an active player in the real estate market. He buys and sells properties frequently, typically holding a property for no more than one year. He buys fixer-uppers, does the fixing himself, and then puts the newly-improved property back on the market. During the taxable year, Abel was involved in 6 real estate transactions, which netted him a profit of over $1,000,000. What is the character of Abel's income -- capital or ordinary? Why?

Reference no: EM132796035

Questions Cloud

Determine break-even price for the option : Assume the current spot rate is $1.1201/€, and U.S. Dollar ($) is the home currency. A PUT option on Euro (€) has a strike price
How do compute julie and jennifer share of net income : Compute Julie's and Jennifer's share of net income if Julie invested $40,000 and Jennifer invested $24,000 at an 8% interest rate, with the remainder
What is the equity value of the operating cash flows : The Gossman Guitar Company is trying to determine the current value its equity. As of its last financial statements, it had net income of $18,000
What is the book value of the bond liability as of June : On January 1, 2017, Simmons Company issued $100,000 of 10-year, 6% bonds. What is the book value of the bond liability as of June 30, 2017
What is the character of abel income : Abel was involved in 6 real estate transactions, which netted him a profit of over $1,000,000. What is the character of Abel's income -- capital or ordinary? Wh
What is the current price of the bond : Now the bond has a yield to maturity of 14.43 percent, compounded semi-annually. What is the current price of the bond?
Prepare equity section on statement of financial position : Oregano Co uses cost method to account for treasury share. Prepare the Equity Section on the Statement of Financial Position Oregano Co as of 31 December 2022.
Calculate the nzd-yen cross-rate : The company needs to determine its net open position to the yen. Calculate the NZD/Yen cross-rate if the current wholesale FX bid and ask quotes are:
How much tax should be payable from Monster Inc : Scarem receives a dividend refund of $21,000. From these transactions, how much tax should be payable from Monster Inc

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare journal entries to record tashas income tax expense

at the end of the prior year tasha inc. had a deferred tax asset of 21000000 attributable to its only timing

  What is the total value assigned to the new piece

The new piece of equipment is expected to have a 10 year life and a salvage value of $15,000. What is the total value assigned to the new piece of equipment

  What amount will Clancey receive when it issues the bonds

The current market rate of interest for bonds of similar risk is 8%. What amount will Clancey receive when it issues the bonds

  Find whether buying or leasing is preferable

Determine whether buying or leasing is preferable. Yamrot Company, a small machine shop, is contemplating acquiring a new machine tool costing Br. 24,000.

  What is the value of jenna capital account at the end

At the end of the accounting period after paying off all its expenses. What is the value of Jenna's capital account at the end of the accounting year?

  Clinton poultry farms has used the declining balance method

Briefly describe the way Clinton should report this accounting change in the 2010-2011 comparative financial statements.

  The tobacco companies have paid billions

The tobacco companies have paid billions because of smoking-related illnesses. In particular, Philip Morris, a leading cigarette manufacturer, paid more than $3,000,000,000 in settlement payments in one year.

  Fixed asset depreciation-cisco and funseth farms examples

Funseth Farms, purchased a tractor in 2008 at a cost of $30,000. The tractor was sold for $3,000 in 2011. Depreciation recorded through the disposal date totaled $26,000.

  Discuss property the importance of earnings management

Discuss property the importance of earnings management. What policies and internal procedures would you consider to be the minimum necessary to instill

  What is the contribution margin ratio

Fatt Choo Sdn Bhd's sales are RM820, 000, variable costs are 62% of sales, and operating income is RM260, 000, what is the contribution margin ratio

  What is the Unrealized Gain or Loss to be reported

There was no change during 2022 in the composition of Calhoun's portfolio of equity investments. What is the Unrealized Gain or Loss to be reported

  What is the average issue price of the preferred stock

The following information is from the December 31, 2017 balance sheet of Jackson Corporation. What is the average issue price of the preferred stock shares

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd