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IgorC [24]
2 years ago
10

In 2017, Holly received a gifted land from her aunt (donor's adjusted basis was $98,000) and the fair market value was $112,000

on the date of gift. This year, Holly sold this land for $102,000. What is Holly's basis in the land and her recognized gain or loss?
A. $98,000, and a gain of $4,000B. $112,000, and a loss of $10,000C. $102,000, and a gain of $4,000D. $102,000, and no gain and loss is recognized.E. None of these.
Business
1 answer:
ra1l [238]2 years ago
5 0

Answer:

Correct answer is A.

<u>Holly's basis is $98,000</u>

<u>Recognized Gain is $4,000</u>

Explanation:

Holly's basis = Carryover basis = $98,000

Recognized gain = Sale value - Basis

= $102,000 - $98,000

= $4,000

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Tatiana [17]
WHAT is the question???????? idk how to answer
6 0
2 years ago
Woodcarving Co. incurred the following costs during May: Conversion costs $ 476,500 Prime costs 403,750 Manufacturing overhead 3
faust18 [17]

Answer:

The correct answer is C

Explanation:

With the following information, we need to calculate the direct materials and direct labor:

Woodcarving Co. incurred the following costs during May:

Conversion costs $ 476,500

Prime costs 403,750

Manufacturing overhead 320,500

We know that:

Conversion cost= direct labor + Manufacturing overhead

476500= direct labor + 320500

direct labor= $156000

Prime costs= direct materials + direct labor

403750= direct materials + 156000

direct labor= $247750

7 0
2 years ago
If you deposit $100 of currency into a demand deposit at a bank, this action by itself
Dahasolnce [82]

Answer:

A) Does not change the money supply.

Explanation:

Demand deposits change the monetary base, because the monetary base equals currency plus demand deposits.

However, in itself, a demand deposit does not change the money supply. For the change in the money supply to occur, the bank must loan out some of the money in the deposit.

8 0
2 years ago
Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own bus
ohaa [14]

Answer: $4,000

Explanation: Economic profit can be defined as the difference between the total revenues generated from operations and cost incurred plus any opportunity cost taken.

Opportunity cost is the cost of next best alternative foregone, that is loss of profits that occurred due to choosing one alternative over other. In the given case loss of interest and loss of highest salary are opportunity cost for Jacqui .

Hence,

economic profit = revenues - (interest + salary)

                        =  $50,000 - ($1000 + $45,000)

                        = $4,000

7 0
1 year ago
Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $175,846, net annual cash flows
Luba_88 [7]

Answer:

11400

the investment should be made because NPV is positive

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV =( Net annual cash flows x present value factor)  - cost

(37300 x 5,02 ) - $175,846 = 11400

5 0
2 years ago
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