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omeli [17]
1 year ago
15

In the current year, Keyaki Construction Company exchanged a building, which cost $530,000 and had accumulated depreciation of $

160,000, for a new building having a fair market value of $650,000. In connection with the exchange, Keyaki paid $280,000 in cash. What is the tax basis of the new building?
Business
1 answer:
wariber [46]1 year ago
4 0

Answer:

The tax basis of the new building amounts to $650,000

Explanation:

The tax basis of the new building is computed as:

Tax basis = Old building - Accumulated depreciation + Cash paid

Where

Old building is $530,000

Accumulated depreciation is $160,000

Cash paid is $280,000

Putting the values above:

= $530,000 - $160,000 + $280,000

= $370,000 + $280,000

= $650,000

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S) Barkley and James cannot attend training during the exercise. They must attend before 4 May or after 25 May. Identify the con
KengaRu [80]

Answer:

Revealed by

Explanation:

The revealed by is the concept that is applied in the case when the classification of the derivatives for the new document is inbuilt and get the authorized source for classification into a new document plus the same is to not seen in the source document

Therefore the concept i.e used to determine the classification of derivatives is revealed by concept

4 0
2 years ago
Bill Mitselfik has purchased a bond that was issued by Acme Chemical. This bond has a face value of ​$1 comma 000 and pays a div
Vlad [161]

Answer:

The correct answer is $1,114.64

Explanation:

According to the scenario, the given data are as follows:

Rate (Semiannual) = 6% ÷ 2 = 3%

Time period = 5 years

Time period (semi annual) (Nper) = 5 × 2 = 10

Face value (PV) = $1,000

payment (pmt) = $1,000 × 4%/2 = $20

We can calculate the FV by using financial calculator,

The attachment is attached below.

So, the Price = $1,114.64

8 0
2 years ago
Depreciation Methods On January 2, 2018, Skyler, Inc. purchased a laser cutting machine to be used in the fabrication of a part
Studentka2010 [4]

Answer:

Part A  

1. Straight-line.    

Year   Depreciation expenses ($)  

2018  228,750  

2019  228,750  

2020  228,750  

2021  228,750  

2. Double-declining balance.  

Year   Depreciation expenses ($)  

2018  460,000  

2019  230,000  

2020  115,000  

2021  110,000  

3. Units-of-production. (Assume annual production in cuttings of 200,000; 350,000; 260,000; and 110,000.)    

Year   Depreciation expenses ($)  

2018  198,913  

2019  348,098  

2020  258,587  

2021  109,402  

Part B  

1. Straight-line.    

Year   Depreciation expenses ($)  

2018  114,375  

2019  228,750  

2020  228,750  

2021  228,750  

2022  114,375  

2. Double-declining balance.  

Year   Depreciation expenses ($)  

2018  230,000  

2019  345,000  

2020  172,500  

2021  86,250  

2022  81,250  

3. Units-of-production. (Assume annual production in cuttings of 200,000; 350,000; 260,000; and 110,000.)    

Year   Depreciation expenses ($)  

2018  99,457  

2019  273,505  

2020  303,342  

2021  183,995  

2022  54,701  

Explanation:

Note: See the calculation in the attached excel file.

Download xlsx
8 0
2 years ago
Read 2 more answers
A large open economy has desired national saving of Sd = 1200 + 1000rw, and desired national investment of Id = 1000 - 500rw. Th
exis [7]

Answer: 10%

Explanation:

The Equilibrium real interest rate would be the interest rate that equates the Desired savings to the desired investment for both the National and foreign economy.

Desired national saving + Foreign desired national saving = Desired national investment + Foreign desired national investment

1,200 + 1,000rw + 1,300 + 1,000rw = (1,000 - 500rw) + (1,800 - 500rw)

2,500 + 2,000rw = 2,800 - 1,000rw

2,000rw + 1,000rw = 2,800 - 2,500

3,000rw = 300

rw = 0.1

rw = 10%

7 0
2 years ago
You are considering two independent projects. Project A has an initial cost of $125,000 and cash inflows of $46,000, $79,000, an
Harrizon [31]

Answer:

b. Accept Project A and reject Project B.

Explanation:

To verify project viability at a required return rate of 16%, simply calculate the project's net present value at a rate of 16%. If the NPV is positive, then the project should be accepted, otherwise it should be rejected.

Project A:

NPV = -\$125,000 +\frac{\$46,000}{(1+0.16)} +\frac{\$79,000}{(1+0.16)^2} +\frac{\$51,000}{(1+0.16)^3}\\NPV =\$6,038.58

Project A should be accepted.

Project B:

NPV = -\$135,000 +\frac{\$50,000}{(1+0.16)} +\frac{\$30,000}{(1+0.16)^2} +\frac{\$100,000}{(1+0.16)^3}\\NPV =-\$5,535.89

Project B should be rejected.

6 0
2 years ago
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