b. What is Grayson's net long-term gain or loss from these transactions? Net long-term capital gain or loss

Q: How are the Capital al losses deducted from capital gains?

A: When an asset such as property for investment purpose (not for personal use), cars and investment…

Q: wealth

A: Every person in his life makes asset and owe some liabilities. We try to maximize our wealth my…

Q: Which of the following is taxable compensation?  A. Commissions B. Honoraria C. Gains on exercise…

A: Taxable Compensation / Income - It is the amount of money earned during the particular period upon…

Q: A To adjust CAPEX for taxable income B To isolate changes due to buying or selling of CAPEX C To…

A: The net capital expenditures are the difference between capital investments and depreciation, and…

Q: How much is legal capital?

A: it's the nominal value of all the accumulative shares issued by the corporate. for example, if a…

Q: What are the Gain Taxes on Asset Disposals?

A: When a asset is disposed, if the value realised on such disposal is more than the carrying amount of…

Q: What capital gains are subject to capital gains taxation?

A: The  сарitаl  gаins  tаx  is  the  levy  оn  the  рrоfit  frоm  аn  investment  thаt  is  inсurred…

Q: What are arguments for and against preferential treatment of capital gains?

A: Capital gain defined as the increase in the value of the capital asset and it is realized when the…

Q: By what amount did working capital change?

A: Working capital is the excess of current assets over current liabilities. Working capital = Current…

Q: Describe the procedures for determining after-tax net cash flows in taxable situations?

A: Net cash flow after tax is an important measure used for the purpose of evaluation of company's…

Q: Why is the distinction between paid-in capital andretained earnings important?

A:

Q: What is the net effect of the foreclosing entries on the balance of the owner's capital account?

A: Owner’s capital account is the one that shows the net amount that the owner has invested in the…

Q: What types of assets produce capital gains income when sold for a profit? A) Inventory B) Realized…

A: Lets understand the basics.Capital gain arise when capital asset gets sold to other party. It is a…

Q: Discuss the accounting problems associated with interest capitalization.

A: Interest capitalization: Capitalization interest is the cost of funds that are used to finance for…

Q: Does the management of long term assets benefit the business in anyway? Are there tax benefits as…

A: Assets  is a resource which has economic value and gives benefit to the company directly and…

Q: What are the effects of depreciation on the profit and loss account and balance sheet?

A: INTRODUCTION: A depreciation plan or chart makes it easier for organizations to keep track of…

Q: When a taxpayer sells an asset, what is the difference between realized and regonized gain or loss…

A: Difference between complete and recognized gains and losses   Realized gains or losses for the…

Q: Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft…

A: Date Purchased Shares Basis Cost per Shares 7/10/2011 580 $27,840 $48.00 4/20/2012 480 $25,824…

Q: What is Capital Gains Tax and give examples?

A: Income tax:  It is the amount a person is liable to pay on the earned amount in an accounting year.…

Q: What are the capital assets subject to capital gains tax?

A: capital assets are significant piece of property which may be the home ,cars investment property…

Q: hat is the amount realized in a transaction? The gain on the sale of an asset The proceeds less the…

A: Capital gain is realized from the sale of fixed assets.

Q: Is taxable interest income generated via active or passive investments, or through a portfolio of…

A: The Answer

Q: would the return on as

A: Return on Assets is net income divided by the average total assets

Q: What are long-term capital gains? Are they taxed like other income? Explain.

A: A long-term capital gain or loss is the gain or misfortune coming about because of the selling of…

Q: what are direct and indirect investments in real estate?

A: Investment refers to payment which is made in order to acquire or purchase or hold the real estate…

Q: How can we determine ordinary gains and capital gains?

A: Answer: In the course of normal business, an ordinary gain is income. The gain or loss of foreign…

Q: Which of the following situations will result in a future deductible amount?  Carrying amount of…

A: Future taxable amount is the amount which increase tax liability in future and for that create…

Q: Why is share in a considered a is perpetuit

A: In finance a perpetuity refers to that financial asset or that financial security that goes on…

Q: How does the Paid-in capital consist primarily of?

A: Share capital of the company means all funds raised by the company in exchange of shares.  Shares…

Q: How do taxpayers determine whether they should deduct their itemized deductions or utilize the…

A: How do taxpayers determine whether they should deduct their itemized deductions or utilize the…

Q: Will taxable income (or losses) and capital gain (or loss) be shared in the same proportion that…

A: Taxes paid are reported as operating activities, even taxes related to investing and financing…

Q: To arrive at the accumulated taxable income, which of the following items does not represent a…

A: The Accumulated Adjustments Account (AAA) is a balance sheet account that contains the net…

Q: What is the difference between a ‘net capital gain’ and a ‘capital gain, and between a ‘net capital…

A: The question is related to Capital Gain head. Capital gain means any profit or gain arising out of…

Q: the purpose of grossing up of Interests in calculating taxable income from Int

A: Taxable income refers to the sum value of money gained by an entity on which the government implies…

Q: Under what conditions should investments be classified as current assets? As long-term assets?

A: A current asset is a cash and other assets that are reasonably expected to be converted into cash…

Q: What are those long-lived assets?

A: Long lived assets are those assets that a business retains for long periods of time for use in the…

Q: What are the deductibility of real property taxes

A: Property taxes and real property taxes are interchangeable terms. They are levied on the majority of…

Q: are dividends considered Capital Gain? Give Code Section

A: Dividend represents the profit distributed among the shareholders of the company. Its is reported in…

Q: Define capital gain (loss)

A: Whenever an asset is sold, the seller incurs either a profit or a loss. The asset may be a real…

Q: laxabie esent a positive adjustment? А. Capital loss carryovers В. Net operating loss deduction C.…

A: Here the question is regarding which is not a positive adjustment in computing the accumulated…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.