Inventory of property included a tract of undeveloped land

Assignment Help Financial Accounting

Reference no: EM13746026

Mike Beasley buys and sells real estate. On December 31, 2016, his inventory of property included a tract of undeveloped land for which he had paid $800,000. The fair market value of the land was $900,000 at that date. How much income should Beasley report for 2016 in connection with this land?

Hubbard Building Company signed a contract with a customer on November 1, 2016. The contract called for construction of a building to begin by December 31, 2016, and to be completed by December 31, 2017. The contract price was $8.0 million. Hubbard estimated that the building would cost $5 million. On November 15, 2016, the customer was required to make an advance payment of $1,000,000. No work was done on the project until January 2017. How much income from the project should Hubbard report in 2016?

Reference no: EM13746026

Questions Cloud

Calculate nikenniss net income : Nikennis Corporation has outstanding at December 31, 2012, 50,000 shares of $20 par value, cumulative, 8% preferred stock and 200,000 shares of $5 par value common stock. All shares were outstanding the entire year. Calculate Nikennis’s 2012 net inco..

Leadership issues through many lenses : Provide concrete examples to support your position along with a minimum of 5 academic sources. Your paper is to be 6-8 pages excluding cover and reference page.

What is the length of mitosis phase : the totall length of cell cycle is 1000 min , 96 % of cells are interphase, what is the length of mitosis phase

What are the effects on assets-cost of goods sold : If an entity overstates its ending inventory for the current year, what are the effects on assets; cost of goods sold, income before taxes, and retained earnings for the current year?

Inventory of property included a tract of undeveloped land : Mike Beasley buys and sells real estate. On December 31, 2016, his inventory of property included a tract of undeveloped land for which he had paid $800,000. The fair market value of the land was $900,000 at that date. How much income should Beasley ..

Minimizing risk video segment : Review the "minimizing Risk" video segment. In the Video segment, you will watch an interview with two great investors of the twentieth century. Imagine you are Harry Reasoner, and you are allowed to ask Peter Lynch one question about market risk,..

Restoring the ecosystems destroyed by the ice age : If it's true that North American earthworms were driven to extinction by the last glaciation, shouldnet we consider them to have been re-introduced? aren't they just restoring the ecosystems destroyed by the ice age

What is its approximate internal rate of return : Horowitz Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $332,168, has an estimated useful life of 12 years, a salvage value of zero, and will increase net ann..

Capital asset pricing model : 1. In the Capital Asset Pricing Model, the market risk premium can be thought of as:

User Account

All Pages