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FromTheMoon [43]
2 years ago
8

Carey, a single taxpayer, purchased a rental house in 2018, which he actively manages. During 2018, Carey had a loss of $14,000

from the rental house. If Carey's adjusted gross income for 2018 is $138,000 before the rental loss, what is the amount of Carey's allowable deduction for the rental activity for 2018?
Business
1 answer:
noname [10]2 years ago
7 0

Answer:

$6,000

Explanation:

First, Carey's allowable deductions repersents 'real estate loss allowance. The real estate loss allowance is an allowance or tax reduction made available to taxpayers who are also owners of rental properties in the U.S.

The specific allowance states that if the adjusted gross income of the owner of the rental property  is $100,000 or less, then the taxpayer is allowed a deduction of $25,000. However, this begins to reduce as the adjusted gross income approaches $150,000 and the allowance is completely eliminated when the income exceeds $150,000

Based on this explanation, Carey's Adjusted Gross Income= $138,000, higher than $100,000 but less than $150,000

The calculation= 50% ($150,000- maximum allowable adjusted gross income- $138,000 - Carey's reported adjusted gross income)

=0.50 ($12,000)

= $6,000

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If your risk-aversion coefficient is A = 4.4 and you believe that the entire 1926–2015 period is representative of future expect
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Answer:

=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.

=> fraction to equity = 0.5518 = 55.18%.

Explanation:

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The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;

The first step is to determine or Calculate the value of fraction to equity.

Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.

= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.

Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .

8 0
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The process of first creating and then developing and strengthening capabilities internally
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Answer:

B. requires first developing the ability to do something, however imperfectly or inefficiently perform their assigned activities in a tightly-prescribed manner developed by the company's foremost technical experts second, translating this ability into a tried-and-true competence and/or capability by learning to do the activity consistently well and at an acceptable cost, and then continuing to polish, refine, and sharpen their performance of the competence or capability, striving not just for ongoing improvements but, ultimately, for best-in-industry or best-in-world proficiency

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If a company chooses to develop it's competencies and capabilities internally and not externally by maybe choosing to outsource experts or merging or collaborating with companies with required competence and expertise, then they would have to follow through with the process of developing and nurturing internal capability and competencies. To proceed with internal competence, a company would need to hire experts if there are none in the company, these experts would train staff who follow through with the process in the option chosen above.

6 0
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Choose all the scenarios below that would cause a decrease in the supply of labor in the agricultural industry.
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Answer:

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With workers getting older and being unable to be as productive as they used to be, they will have to drop out of industries that require physical strength including farming. This will therefore reduce people working in agriculture.

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New machinery reduces the need for workers in agriculture so the more they are bought, the less workers are needed. This will therefore directly reduce the number of people working in agriculture.

7 0
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