contrad intotity coestimt theJake sued an unscrupulouscostsperson for derogatory remarksat amwhich he considered to haveemberonbesmirched his reputation. Thecourt awarded him an250,0050,00050,00050,000indemnity of P1,000,000inclusive of P200,000reimbursement for Attorney'sfees and P10O,000 exemplarydamages. Compute Henson'stotal return on capital.lem 4g 2020he BIRed thattimateas P650a. P1,000,000O b. P800,000O c. P700,000he 2020d and aO d. POmounter 31, 22 noints00An olion rogovod D200 0

Given information, Total indemnity awarded = P1,000,000 attorney's fees = P200,000 exemplary damages…

Answered: Jake sued an unscrupulous person for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

In the current year, Erin had the following capital gains (losses) from the sale of her investments: $2,900 LTCG, $24,100 STCG, ($9,900) LTCL, and ($15,900) STCL. What is the amount and nature of Erin's capital gains and losses? Multiple Choice $1,200 net short-term capital gain. $1,200 net long-term capital loss. $3,100 net short-term capital gain. $3,100 net long-term capital loss. None of the choices are correct.
Bill received $100,000 in insurance proceeds to compensate him 3budiness equipment destroyed by a fire. The adjusted basis of the equipment was $80,000. Bill reinvested $95,000 of the insurance proceeds in replacement business equipment within the time allowed. He wants to defer gain to the maximum extent allowed. Bill must recognize how much gain? A. 2,500 B. 5,000 C. 25,000 D. 450,000
Morris a single taxpayer earns wages of $350,000. In tax year 2021 he also owns a sole proprietorship with $210,000 of income and $480,000 of allowed deductions ( 270,000 dollar loss). Boris has enough tax basis to cover the loss as and is considered at risk for the loss amount and he materially participates in the activity. What is the amount of excess business loss he will carry forward $10,000 $80,000 $260,000 $270,000
On July 11, 2020, Ted purchased a small software company for $200,000. He paid $120,000 for the fixed assets of the company and $80,000 for goodwill. How much amortization may Ted deduct on his 2020 tax return for the purchased goodwill? a. $5,750 b. $2,667 c. $80,000 d. So Xin e. $5,333
29. Brenda filed suit against her insurance company for deceptive trade practices. She seeks $5,000 in damages; $12,000 for mental anguish; and $10,000 for attorney fees. Her insurance company countersues for slander and seeks $10,000. If the court awards both parties what they are asking, how much would Brenda receive in most jurisdictions? a. $10,000 ob. $17,000 OC. $28,000 Od. $30,000
In July 2021, Cassie purchases equipment for $55,000 to be used in her business. Assuming Cassie has a small net loss from her business prior to the deduction, what is the maximum amount of cost recovery Cassie can deduct? a. $55,000 b. $7,860 c. $27,500 d. $31,430
Greg Grotto exchanged an eight-unit apartment building for a four-unit apartment building. His adjusted basis for the eight-unit building was $320,000 and the fair market value was $400,000. The fair market value of the four-unit building he received, which was subject to a $40,000 mortgage, was $440,000 on the date of the transaction. How much gain does Greg need to recognize? a. $120,000 b. $80,000 c. $48,000 d. $40,000 e. $0 Please do not give solution and formulae in image format.. thanku
Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following alternative scenarios? c. Rafael received $20,000 cash, a parcel of land worth $50,000, and marketable securities of $10,000. Rafael also paid a commission of $8,000 on the transaction.
Lisa sells business property with an adjusted basis of $132,000 to her son, Alfred, for its fair market value of $105,600. If an amount is zero, enter "0". a. What is Lisa's realized and recognized gain or loss? Lisa has a $__________ realized loss of which $___________is recognized. b. What is Alfred's recognized gain or loss if he subsequently sells the property for $145,200? For $85,800? If Alfred sells the property for $145,200, he has a recognized gain of $_______________. If Alfred sells the property for $85,800, he has a recognized loss of $_______________.
Q1 Decker has a $1,000 loss from an activity in which he materially participates. He has $500 of basis in the activity and his at risk basis is $300. How much of the $1,000 loss may Decker deduct against ordinary income ?
Bernstein invests office equipment with a fair market value of $62,000, delivery equipment with a fair market value of $75,000, and cash of $30,000. He owes $27,000, represented by a note on the delivery equipment. The amount of Bernsteins' capital would be a.$140,000. b.$30,000. c.$167,000. d.$137,000.
Mf6. 1. Debtor purchased a home in 2007 for $100,000. Acme Savings and Loan obtained a first mortgage in the property in exchange for an $80,000 loan. In 2010 Debtor's former business partner Smith obtained a judgment lien against Debtor for $40,000. In 2013 Debtor made home improvement by a $10,000 loan from First Financial in exchange for a second mortgage. Upon default, foreclosure proceedings forced a sale of Debtor's home in December 2022. At the time debtor owed Acme $70,000, Smith $30,000 and First Financial $8,000. The house was sold for $90,000. Selling expenses were $5,000. a. How much would each creditor receive from the proceeds of the sale? b. How much is the deficiency?

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