Reference no: EM133170052
Question - A businessperson is planning for retirement, and is winding down the business by selling the rental properties. By the end of 2020 there were two buildings left. During 2021 both of these last two buildings were sold. Here is information about the two buildings:
Building #1: original cost of $210,000; UCC $155,000; sales price $149,000
Building #2: original cost of $255,000; UCC $140,000; sales price $240,000
Given the above, what is the effect on net income for 2021?
A. Recapture $92,000, terminal loss $6,000, taxable capital gain $9,000.
B. Recapture $92,000, terminal loss $55,000, taxable capital gain $18,000.
C. Recapture $110,000, terminal loss $6,000, taxable capital gain $9,000.
D. Recapture $110,000, terminal loss $55,000, taxable capital gain $18,000.
E. None of the above
|
How much must it invest today to reach
: The International Monetary Fund is trying to raise $900 billion in 6 years for new funds to lend to developing countries. How much must it invest today to reach
|
|
What is the unit cost of product using the full cost method
: Of these, 3,000 units have been sold. The selling price per unit is $10. What is the unit cost of product using the full cost method
|
|
Determine the manufacturing cost per unit
: By 2021, K had produced 50,000 units and sold 44,000 units. The unit selling price was $40. Determine the manufacturing cost per unit
|
|
What effect would these items of have
: An individual investor received the following income during 2021: (1) interest income of $6,500; What effect would these items of have
|
|
What is the effect on net income
: Building #1: original cost of $210,000; UCC $155,000; sales price $149,000 - Given the above, what is the effect on net income for 2021
|
|
Compute the flexible-budget variances
: The following is total monthly budgeted cost and activity information for the four activity center - Compute the flexible-budget variances
|
|
What are the implications for accounting of a theory
: Theories of Accounting - Critical Perspectives in Accounting - What are the implications for accounting of a theory that focuses on objectivity and holds
|
|
Calculate the equipment beck value at the end
: The company estimates the equipment to have a useful life cf 5 years and a salvage value of $2,000. Calculate the equipment beck value at the end
|
|
Calculate the static budget and flexible budget
: Using the following information, calculate the static budget, flexible budget and sales-volume variances. Actual Budget Total Revenue $120,000 $110,000
|