Answer: open listing
Explanation:
Open listing simply refers to situation whereby a property owner uses several real estate agents when he or she wants to sell a property so that there will be many potential buyers.
In this situation, the agent who eventually brings the person who purchases the property will collects the commission assigned to the property.
Answer:
correct option is b. $4,500 long-term capital loss
Explanation:
given data
assets = $50,000
fair market value = $60,000
basis = $65,000
adjusted basis before distribution = $34,500
liquidation in cash = $30,000
to find out
amount and type of loss should Cadwallader recognize on tax return
solution
we know here adjusted basis before distribution and liquidation in cash so we will get here amount and type of loss that is
amount and type of loss = adjusted basis before distribution - liquidation in cash
amount and type of loss = $34,500 - $30,000
amount and type of loss = $4500 long term loss
so correct option is b. $4,500 long-term capital loss
Answer:
The multiple choices are as follows:
a.
25.40%
b.
29.03%
c.
39.25%
d.
33.98%
e.
27.38%
The correct option is C,39.25% federal tax rate
Explanation:
In determining the federal tax that one would be indifferent in choosing between the two bonds, we equate the yield of the two bonds as follows with tax element being deducted from corporate bond yield:
6.50%=10.70%*(1-t)
The t is the tax rate which is the unknown
divide both sides by 10.70%
6.50%/10.70%=1-t
0.607476636
=1-t
t=1-0.607476636
t=0.392523364
=39.25%
Answer:
$816,000
Explanation:
Little company's income was for 864,000
We also have, amortization related to Little company for 48,000
we will decrease the income from Little company by this amount
giving a net result of 816,000
The dividends do not impact net income.
The Big Company transactions do not impact on the Little company net income unless we are provided otherwise.
We are not given any information of rtansactions intra-entity so we can conclude thats the consolidades earning for Little Company.
<span>Potential investment of the Tackle shop = $750000
Depreciation Tax Shield = $35000
Tax Rate for 2016 = 20% => T = 0.2
So we have a equation for depreciation, which goes like
Depreciation Tax Shield = T(Depreciation )
=> 35000 = 0.2(Depreciation)
So the Depreciation = 35000/0.2 which gives $175,000
Depreciation = $175,000
So C is correct.</span>
