Alpha sold machinery that it used in its business to Beta, a related entity, for $40,250. Beta used the machinery in its business. Alpha bought the machinery a few years ago for $49,750 and has claimed $30,250 of depreciation expense. What is the amount and character of Alpha's gain?Alpha sold machinery that it used in its business to Beta, a related entity, for $40,250. Beta used the machinery in its business. Alpha bought the machinery a few years ago for $49,750 and has claimed $30,250 of depreciation expense. What is the amount and character of Alpha's gain?

Answers

Answer 1

The amount and character of Alpha's gain from the sale to Beta are $20,750 capital gains.

What is capital gain?

A capital gain is an excess realized from the sale of assets because of the increased value compared to the book value.

Capital gain is subject to capital gain tax.

Data and Calculations:

Cost of machinery = $49,750

Accumulated depreciation = $30,250

Book value = $19,500 ($49,750 - $30,250)

Sales to a related entity = $40,250

Capital gains = $20,750 ($40,250 - $19,500)

Thus, the amount and character of Alpha's gain from the sale to Beta are $20,750 capital gains.

Learn more about capital gains at https://brainly.com/question/9144560

#SPJ1


Related Questions

What is owner's equity?
Nonsense = Reported
Thank you ~​

Answers

Hii :))

Owner's equity is defined as the amount of money invested by the owner in the business minus any money taken out by the owner of the business.

~


20: What are some ways you can stay financially literate?

Answers

Ayuda porfabor necesito ayuda

Select the correct answer.
Which term describes the ability to use different types of reasoning for different situations and analyze the possible outcomes of a decision?
OA critical thinking
OB. goal setting
OC. decision making
OD. planning

Answers

Answer:

D.the answer is planning

Which of the following accounts would not appear in the post-closing trial balance? Interest Payable, Equipment, Depreciation Expense, Dividends, Unearned Service Revenue, Accumulated Depreciation Equipment, and Service Revenue.​

Answers

The accounts that would not appear in the post-closing trial balance are:

Depreciation ExpenseDividendsService Revenue.​

What is a post-closing trial balance?

A post-closing trial balance lists all non-zero balance sheet accounts.

The post-closing trial balance verifies that the total assets (debit balances) equal the total of all liabilities and equity (credit balances).

Thus, the accounts that would not appear in the post-closing trial balance are Depreciation Expense, Dividends, and Service Revenue.​

Learn more about post-closing trial balances at https://brainly.com/question/14274904

#SPJ1

Should firms require higher rates of return on foreign projects than on identical projects located at home? Explain.

Answers

Probably yes coming from s middle schooler yes because it will be good to work in you house because it’s a better and comfortable environment

INTERVIEW a business owner on the crisis experienced in the workplace attach an interview schedule as part of your oral presentation

Answers

An effective interview should contain a planned schedule and script, as well as questions that align with the research objective.

How to plan an interview?

It is essential that the questions developed are objective and directive, following a planned roadmap where the main solutions for the research are satisfied. It is essential to seek to reduce subjectivity and ambiguity in a structured interview.

Therefore, in an interview with an entrepreneur about a crisis in the workplace, some topics can be addressed, such as risk planning, personnel management and communication.

Find out more about interview here:

https://brainly.com/question/8846894

#SPJ1

After the price of a Wall Street Journal subscription increases by 5%, subscriptions among
people working in the technology sector declined by 10%, while subscriptions among people
working in the banking sector declined by 2%.
a. Calculate the price elasticity of demand for tech workers and bankers separately

Answers

Subscriptions among people working in the technology sector declined by 10%, After the price of a Wall Street Journal subscription increases by 5%. The price elasticity can be counted by the percentage change in quantity divided by the percentage change in price.

What is Wall Street?

Wall Street is used as an umbrella term to describe the financial markets and the companies that trade publicly on exchanges throughout the U.S. Wall Street has been the historic headquarters of some of the largest U.S. brokerages and investment banks, and is also the home of the New York Stock Exchange.

You'll find most major finance corporations on Wall Street and within the Financial District in Manhattan. Well-known companies include Goldman Sachs, Morgan Stanley, Deloitte, BlackRock.

Learn more about Wall Street here,

https://brainly.com/question/1298142

#SPJ1

Which type of interest can earn more money over the long term?
O savings interest
O compound interest
O simple interest
O complicated interest

Answers

Compound interest would be the correct answer.

A needs assessment conducted at McDonald's was presented in the text. Which of the following is NOT true of its needs assessment process?

Answers

A need assessment process comprises of Plan, Developing questions, Select data collection methods, Analyze and prioritize data.

What is Needs Assessment?

Simply put, a Needs Assessment can be defined as a process to find what is missing is a system that is meant to deliver a particular output.

In summary, it is an analysis of what is given and what is expected.

Learn more about  Needs Assessment here:

https://brainly.com/question/14618376

#SPJ1

How much would $7,550 due in 50 years be worth today if the discount rate were 7.5%?

Answers

If we were to receive $7,550 in 50 years, in today's value and at a discount rate of 7.5%, it would be worth $203.

What is the present value of $7,550?

You can find this out through the formula:

= Amount / (1 + rate) ^ number of periods

Solving gives:

= 7,550 / ( 1 + 7.5%)⁵⁰

= 7,550 / 1.075⁵⁰

= $203

Find out more on present value at https://brainly.com/question/20813161.

#SPJ1

Much of the information contained on a résumé is also requested on a(n)
O job application
OW-4
O W-2
new employee survey

Answers

The information mentioned in a resume is also written in the job application. Thus, the correct answer is option A.

What is a Job application?

A job application is a statement where a candidate fills the information about him to allow the employer to know about his experience and responsibility. A job application includes personal information, educational qualification as well as professional experience.

This will play important role in selection as it helps employers to compare two applications and select one that best fits the role. There are different types of job applications written as per job profiles.

Therefore, option A job application is appropriate answer as it contains similar information to a Resume.

Learn more about Job applications, here:

https://brainly.com/question/4101290

#SPJ1

Explain how consumer and business magazines differ, and give an example of each.

How do different types of radio stations affect your advertising decisions?

Answers

Answer:

Different radio advertisement examples work best at certain times a day or on specific stations, and this will affect how much end up paying. Sponsorship of a Radio Show or Segment A sponsored radio advertisement is an ongoing, repeating ad spot that accompanies a segment, or the intro or outro of an entire show.

A company purchased equipment for $ 2,000 cash. the seller stated that the equipment was worth $ 2,400. at what amount should the equipment be recorded? at $ 2,000 or $2,400? justify your answer​

Answers

2,400 is the correct answer

Stephi owns a footwear store. She wants to create a graph of the number of sneakers sold, by brand. She copies the SneakerSales query results from the database. What should be her next step?
pasting the query results into a spreadsheet
sorting the query results by brand
graphing the data
pasting the graph into a spreadsheet

Answers

Answer:

the answer is a

Explanation:

pasting the query results into a spreadsheet :)

brainliest/crown please :)

Answer:

a = pasting the query results into a spreadsheet

Explanation:

informal organizations arise spontaneously as people associate with one another

Answers

Answer:

If this is a true/false then I would say true.

Since online banking and mobile apps allow you to track your spending and
savings, they are really helping you __
,
make your money even safer
manage your money
O avoid using the services of your financial institution
reach higher interest rates

Answers

Option B, Manage your money

HELPED NEEDED !

David’s company has production plants set up in almost 20 countries. However, his company is experiencing low demand and its total exports are decreasing. Moreover, due to strong competition, David’s company has resorted to intensive marketing strategies. This focus has led to an increase in marketing costs. In which phase of the product cycle is David’s company?

A.
introduction
B.
decline
C.
maturity
D.
growth

Answers

Answer:

B. Decline

He has scaled his business, and the years have caused damage to his overall products hence the business is in decline.

Bank Reconciliation Statement is prepared
by:

Answers

Answer:

Customer of a bank or book keeper of the company

Explanation:

The statement belongs to the customer

Social Security is intended to be ______ once you retire.
A. a financial safety net
B. reduced
C. your main source of income
D. a match to your savings
once you retire.

Answers

Social Security can be a financial safety net in the period of an individual's retirement.

What are the Social Security benefits?

It provided assistance to retired workers aged 65 or over to be entitled to receive a monetary amount to generate greater income and health security, helping to improve the quality of life of individuals in this age group.

Therefore, social security is a system that generates security and increases equity among citizens.

Find out more about Social Security here:

https://brainly.com/question/5213237

#SPJ1

What are the copyrights that you encounter in your daily lives?

Answers

Copyright is something we often encounter in our daily lives. The songs we listen to, the movies we watch, and the social media posts we read are all protected by copyright.

What is copyright?

Copyright protects expressions of ideas by granting the copyright owner of the work a bundle of rights. This bundle of rights grants the copyright owner exclusive rights to reproduce, publish, perform, communicate and adapt his or her work.

Copyright does not protect inventions or a company’s brand. Those are protected by patents and trademarks, respectively.

Learn more about copyright here,

https://brainly.com/question/5470026

#SPJ1

Consider a project to supply 100 million postage stamps per year to the U.S Postal Service for the next five years. You have an idle parcel of land available that cost $750,000 five years ago; if the land were sold today, it would net you $1,125,000 aftertax. The land can be sold for $1,295,000 after taxes in five years. You will need to install $5.1 million in new manufacturing plant and equipment to actually produce the stamps; this plant and equipment will be depreciated straight-line to zero over the project’s five-year life. The equipment can be sold for $450,000 at the end of the project. You will also need $425,000 in initial net working capital for the project, and an additional investment of $50,000 in every year thereafter. Your production costs are .38 cents per stamp, and you have fixed costs $1.1 million per year. If your tax rate is 23 percent and your required return on this project is 10 percent, what bid price should you submit on the contract?

Answers

The bid price that should be submitted on the contract based on the information given about the project will be $0.030257.

How to calculate the bid?

Firstly, we simply need to calculate the annual depreciation. This will be:

= Investment - Salvage value / Useful life

= 5100000/5

= $1,020,000

Let's assume that the bid price is x, the operating cash flow will be:

= [Revenue - Variable cost - Fixed cost - Depreciation) × (1 - tax rate)

= (1000000000x - 380000 × -1100000 - 1020000) × (1 - 23%) + 1020000

= 77000000x - 1925000 + 1020000

= 77000000x - 905000

The bid price will now be:

NPV = Present value of investment + Present value of operating cash flow

0 = -5401174.1 + (77000000x - 905000) × PVIFA(10%, 5 years)

0 = -5401174.1 + (77000000x - 905000) × 3.79

77000000x = (5401175.09/3.79) + 945000

x = 2329816.38/77000000

= 0.03257

Learn more about projects on:

brainly.com/question/25009327

#SPJ1

Installing a security system is an example of this operating expense.
O insurance
O improvements
O inventory
O professional services

Answers

Installing a security system is an example of an improvement operating expense. Option B. This is further explained below.

What is security system?

Generally, a security system is simply defined as a system of security when someone attempts to break in, an electrical gadget sends off an alert.

inconclusion, An example of an improved operational expenditure is the installation of a security system.

Read more about security system

https://brainly.com/question/14605217

#SPJ1

You are watching a news report with your friend. It states that a certain troubled Caribbean nation generates a GDP per capita of $630. Your friend knows that U.S. GDP per capita is about $63,000, so he states that we are materially 100 times better off in the U.S. than in the Caribbean nation.

1. Is your friend’s statement accurate?

2) What are some examples of production not captured by GDP in both the United States and the Caribbean nation?

3) Would the exclusion of this type of production affect the measurement of Caribbean output more than U.S. output?

Answers

Answer:

GDP is $9200988

Explanation:

your friend and you are not interested

What helps a consumer determine the quantity of something to buy?
O marginal cost
O marginal error
O marginal benefit
Omarginal comparison

Answers

The Marginal cost helps a consumer determine the quantity of something to buy.

What is The Marginal Cost?

Marginal cost refers to the additional cost to produce each additional unit. The marginal cost of production is the change in total production cost that comes from making or producing one additional unit.

It represents the incremental costs incurred when producing additional units of a good or service. It is calculated by taking the total change in the cost of producing more goods and dividing that by the change in the number of goods produced.

Learn more about Marginal cost here,

https://brainly.com/question/1364007

#SPJ1

Wesley has asked his assistant to prepare an income and expense statement for a meeting. Which costs can the assistant include in the
operating expenses in the statement?
OA. loan payments
OB. taxes
OC. cost of land purchase
O D.
cost of the purchase of heavy machinery
OE inventory expenses

Answers

The cost that the assistant can include in the operating expenses in the statement include:

A. loan paymentsB. taxesD. cost of the purchase of heavy machineryE inventory expenses

What are operating expenses ?

An expense a business faces as a result of ongoing operations is referred to as an operating expense. Operating expenses, which are frequently referred to as OPEX, include rent, tools, inventory costs, marketing, payroll, insurance, step charges, and money set aside for R&D.

Operating expenses, which are frequently referred to as OPEX, include rent, tools, inventory costs, marketing, payroll, insurance, step charges, and money set aside for R&D.

Loan payments, taxes, and inventory expenses should therefore be included by Wesley's assistant.

Find out more on operating expenses at https://brainly.com/question/14697297

#SPJ1


Jamal runs a successful small business in the United States and has decided to expand internationally. When Jamal
attempted to obtain the necessary government permit in a developing country, he most likely learned that

Multiple Choice
The news media expert a kickback so Jamal won’t receive any bad publicity.

It’s easier to open a business without a permit

The uniform commercial code has streamlined the permit process

Corrupt public officials expect him to pay bribe money to get the permit.

Answers

Answer:

It’s easier to open a business without a permit

Explanation:

it just is. until somebody finds out. it is more difficult to get a bussiness permit than not

While Jamal attempt to get a govt license in a developing country then he comes to know that it is easy to set up a business even without a license.

Option B is the correct answer.

What is a license?

A license is a record or a document that signifies permission to an individual to do something.  

Small businesses are the entities set up in the small-scale economy of a country. The business can be set up by Jamal very easily in the developing nation as it requires no license in the beginning but can require them for further growth in the business.

Therefore, the explanation provided in Part B is something that is being learned by Jamal while trying to get a license.

Learn more about the small business in the related link:

https://brainly.com/question/13424073

#SPJ2

The potential benefits a person or business gives up when making an
economic decision is called the
O A. profit margin
B. capital investment
C. opportunity cost
O D. production possibility

Answers

The potential benefits a person or business supplies when getting an

economic decision is called the opportunity cost.

What is an opportunity benefit in economics?

Opportunity cost is the decision that one takes in order to get something. The benefit is the decision that a person gives in personal or professional life.

If the outcome of the decision is in favor than the opportunity cost is in benefit and if the decision has consequences than the opportunity cost is in loss.

Thus, option C is correct.

For more details about Opportunity cost, click here:

https://brainly.com/question/20446148

#SPJ1

Substantive law can best be described as:

Answers

substantive law is a set of known and defined laws which govern how members of the society behave. it also have a relationship with procedural law which is a set of procedures for making and enforcing substantive law.

Substantive law defines rights and responsibilities in civil law, and crimes and punishments in criminal law. It may be codified in statutes or exist through precedent in common law.

i hope this helps..

Judi Janson wishes to accumulate $8,000 by the end of 5 years by making equal, annual, end-of-year deposits over the next 5 years. If Judi can earn 7% on her investments, how much must she deposit at the end of each year to meet this goal?

Answers

Answer: 1,391.13

Explanation:

What is the distinction between debtor and creditor?

Answers

Answer:

A creditor is a person who lends money or extends credit to another person.  A debtor is a system or person that owes money to another orginization or party (AKA a company or individual who owes money.)

Explanation:

Hope this helps you! Good luck :)

Debtor → A company or individual who owes money.

Creditor → A person to whom a debt is owed especially.

Basically the debtor is the borrower and the creditor is the lender.

[tex]\large{\red{\bold{ { \underline{\overline{{ \purple{hope \: this \: helps \: you \: \:}}}}}}}}[/tex]

Other Questions
I need help with number 35 The post-WWII Theater of the Absurds use of parody and surrealism was a means of depicting what societal element?a war-ravaged societys need for humora desire to better understand human psychologythe quest for truth and meaning in a culture of lonelinessa return to melodrama inspired by nineteenth-century Western theater solve the equation by completing the square. x+6x-4=0 Ms. Wimbley surveyed the middle school and found out that 70 students want to go to sky zone for the end of the year field trip. This represents 14% of the middle school. How many students are in the middle school? Select the reason that best supports statement 5 in the given proof. (See Image) A distributive property B substitution C reflective property D subtraction property of equality Please help with this question. difference between odd strange and bizzare 3 x 5/6 = ? x 1/6those are fractions btw and what number makes the equation true?PLEASE NO LINKS how do i do this?? thanks in advance! How many baby formula plants are in the united states?. what is the value of...4x - x + 5, when x = 3??? Social Security and Medicare taxes are two types oftaxes.O A. employmentO B. salesO C. propertyD. income BRAINLIEST AND LOTS OF POINTS! Help please, and quickly!!!!! Determine the CM of the uniform thin L-shaped construction brace shown in (Figure 1) . Suppose that a = 2.20 m and b = 1.63 m Determine the x coordinate of the CM Where was the scaffold located? Group of answer choices Beneath the eaves of the church On the outside of town In front of the store In the forest How can citizens act as gatekeepers for the criminal justice system?by reporting to police if they suspect a crime has been committedby participating in a grand jury that indicts defendantsby making citizens arrests on people who commit crimesby voting for judges and prosecutorshelp! i'm just confused about what gatekeepers mean in this context... this is for a criminology class btw! The measures of two angles of a triangle are 39 and 49. Find the measure of the third angle. A taxi charges a flat rate of $2.00, plus an additional $3 per mile. If Erica has at most $20 to spend on the cab ride, how far could she travel? Write an inequality and solve SOMEONE PLEASE HELP WILL MARK BRAINLIEST The following diagram shows two meteors with masses of 1,000 kilograms and 3,000 kilograms spaced 10 meters apart. What is the magnitude of the gravitational force exerted by the 1,000 kg meteor on the 3,000 kg meteor? 2 10-9 N, 2 10-6 N, 7 10-10 N, 2 10-2 N