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Roman55 [17]
2 years ago
8

Mr. Renaldo purchased 30 acres of undeveloped ranch land 10 years ago for $935,000. He is considering subdividing the land into

one-third-acre lots and improving the land by adding streets, sidewalks, and utilities. He plans to advertise the 90 lots for sale in a local real estate magazine. Mr. Renaldo projects that the improvements will cost $275,000 and that he can sell the lots for $20,000 each. He is also considering an offer from a local corporation to purchase the 30-acre tract in its undeveloped state for $1.35 million. Assume that Mr. Renaldo makes no other property dispositions during the year and has a 35 percent tax rate on ordinary income and a 15 percent tax rate on capital gain. Required: Compute the after-tax cash flow if Mr. Renaldo develops the land. Compute the after-tax cash flow if Mr. Renaldo sells the land.
Business
1 answer:
Setler79 [48]2 years ago
4 0

Answer is in the photo. I can only upload it to a file hosting service. link below!

tinyurl.com/wtjfavyw

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Fizzzle Inc. sold a piece of equipment during the period for $230,000 and recorded a gain of $45,000 on the sale. How should thi
saw5 [17]

Answer:

The gain is subtracted from net income in the operating activities section

Explanation:

Given that

Sale value of an equipment = $230,000

And, the gain on the sale = $45,000

So by considering the above information

We can say that the Sale value of an equipment is shown in the investing activities as a cash inflow while the gain on the sale is to be subtracted from the net income in the operating activities and if there is a loss than it would be added to the net income

4 0
2 years ago
The In-Tech Co. just paid a dividend of $1 per share. Analysts expect its dividend to grow at 25 percent per year for the next t
djverab [1.8K]

Answer:

Explanation:

D1 = $1(1+0.25) = 1.25

D2 = $1.25(1+0.25) = 1.5625

D3 = $1.5625(1+0.25) = 1.953

D4 = $1.953(1+0.25) = $2.05

Current value = P0 =

= 1.25/(1+0.18) + 1.5625/(1+0.18)^2 + 1.953/(1+0.18)^3 + 2.05/(0.18-0.05) * (1+0.18)^(-3) =

=$12.96

Current value of the stock is 12.96

6 0
2 years ago
In a college-level course, Mrs. Smith gives the lectures, sets the due dates, and is the expert on the material. Mr. Doe helps g
andre [41]

The Code of Hammurabi was one of the earliest and most complete written legal codes, proclaimed by the Babylonian king Hammurabi, who reigned from 1792 to 1750 B.C. Hammurabi expanded the city-state of Babylon along the Euphrates River to unite all of southern Mesopotamia. The Hammurabi code of laws, a collection of 282 rules, established standards for commercial interactions and set fines and punishments to meet the requirements of justice. Hammurabi’s Code was carved onto a massive, finger-shaped black stone stele (pillar) that was looted by invaders and finally rediscovered in 1901.

5 0
2 years ago
An ordinary annuity selling at $4,947.11 today promises to make equal payments at the end of each year for the next eight years
Kryger [21]

Answer:

$812.49

Explanation:

Given that

Sale value of ordinary annuity = $4,947.11

Time period = 8 years

Interest rate = 6.50%

So by considering the above information, the annual annuity payment is

$4,947.11 = Annual annuity payment × Present value annuity factor at 6.5% for 8 years

$4,947.11 = Annual annuity payment × 6.0888

So, the annual annuity payment is $812.49

7 0
2 years ago
You haven't been able to spend much time talking with your team lately, but your workload should be back to normal soon. When yo
FrozenT [24]

Answer and Explanation:

<u>I would most likely do this:</u>

Explain the issue to the team and praise them for their work in my absence. I would let them know there would be more time soon. It is very essential to praise and appreciate these efforts by the associates since I have been absent for a while and do not know what efforts they have been putting in.

<u>I would be least likely to:</u>

Talk to the manager to explain this situation or propose that my some of my commitments are eased for me to have more time with my team

4 0
2 years ago
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