Answer:
As in her worthless note,Sandy has a zero adjusted basis. Her bad debt deduction is Nil according to Section 166 (b).
Section 166(g)(1) states that her capital loss realized on the deemed sale of this stoke is also nil because of zero adjusted basis in her worthless stock.
According to Reg. Sec.1.1366-2(a)(5) if all of her stock is disposed by an S corporation shareholder and loss carryforward attributable to the Section 1366 (d) basis. Limitaitons are permanently disaalowed.
Hence, her $7,400 ordinary loss carryforward can never be deducted by Sandy.
Sandy has no 2012 tax consequences from worthlessness of her Lindlee investments
Answer:
$2800
Explanation:
To find the Gain or loss on the sell of shares we jus need to deduct cost of purchasing and brokerage fee from sale proceeds
12 DECEMBER 2019
Gain/loss = Sales proceeds- Total Cost to purchase - Cost to sell
Gain/loss= ($88 x 265) - $20,305 - $215
Gain/loss= $23,320 - $20,305 - $215
Gain/loss= $2800
WORKINGS
Purchase 1 Jan 2019
265shares x $76per share = $20,140
Total cost to purchase = $20,140 + $165(brokerage fee)
Total cost to purchase = $20,305
Cost to sell = $215(brokerage fee)
Answer:
<em>The current market price for the bond is $903.05</em>
Explanation:
<em>Steps taken to arrive at the current market price of the bond</em>
<em>Recall PV=present value</em>
<em>face value=$1000</em>
<em>percent bond=4.5,</em>
<em>A semiannual interest payments of 7 years, yielding a maturity rate of=6.23%</em>
<em>PV = [(.045 × $1,000)/ 2] ×{(1 - {1 / [1 + (.0623/ 2)]14}) / (.0623 / 2)} + $1,000 / [1 + .0623 / 2)]14
</em>
<em>PV = $903.05</em>
Answer:
B
Explanation:
Economic base are businesses that generate employment in a community or a geographical area.
Economic base analysis is a theory that posits that activities in an area divide into two categories:
1) Basic industries are those exporting from the region and bringing wealth from outside.
2)Nonbasic industries support basic industries.
The basic industries of a region are identified by comparing employment in the region to national norms.
Answer:
1. Going concern
2. Economic entity
3. Monetary unit
4. Periodicitys
Explanation:
1. Since Jumbo's Restaurant is planning to close, the assumption of continuity (going concern) is no more applicable. This should be disclosed. Instead asset was still recorded at historical price which is misleading.
2. Gorloks Tax Services is an economic entity, and the property and assets of owners are not considered to be for the business. In this case the boat Sam bought was wrongly reported as an asset of the company.
3. Claim Jumpers when reporting the 5 trucks purchased must include a monetary value for them. The assumption of monetary unit states that all items reported on the balance sheet must be expressed in monetary terms.
4. Cobbler's Etc violated the assumption of periodicity which states the financial position of the business must be declared in a particular accounting period. Accounting period can monthly, quarterly, biannually, and yearly. The business should choose and accounting period and ensure financial position is reported for each of them. In this case financial reporting is not consistent with reporting happening after 14 months and before that 18 months.