What is the result if randy elects out of the

Assignment Help Macroeconomics
Reference no: EM13314618

In year 1, Randy sells a parcel of land that he held as an investment for a number of years.

The land has a basis to Randy of $8,500. The buyer makes a $6,000 down payment in year 1 and will make a $7,000 payment in year 2 and a $7,000 payment in year 3. In addition, a reasonable rate of interest is charged on the year 2 and year 3 payments. How much income will Randy recognize in years 1, 2, and 3, assuming that he uses the installment method?

What is the result if Randy elects out of the installment method for this sale?

Reference no: EM13314618

Questions Cloud

What are the tax consequences of this loan to joshua and to : Joshua loans his son, Seth, $100,000 interest-free for five years. Seth uses the money for a down payment on his home. Assume that the applicable federal rate of interest is 5 percent.
Calculate her after-tax cash flow from each investment if : Jessica has $10,000 invested in corporate bonds with a stated interest rate of 8 percent and $10,000 in tax-exempt municipal bonds issued for governmental activities with a stated interest rate of 6 percent.
Explain the percentage light blue-green solid is collected : What is the molar concentration of chloride ion in the final solution? (assuming complete dissociation) 2) What is the percentage yield if 122.5 mg of a light blue-green solid is collected after 100.00 mL of this solution is combined with 25.0 mL ..
How much gross income must carl report for the year : Carl paid $40,000 to the City of Hollywood for general revenue bonds. During the current year, he receives $2,300 interest income from the bonds. Market interest rates drop causing the value of the bonds to increase so Carl sells the bonds for $43,00..
What is the result if randy elects out of the : The land has a basis to Randy of $8,500. The buyer makes a $6,000 down payment in year 1 and will make a $7,000 payment in year 2 and a $7,000 payment in year 3. In addition,
How much income should realty corporation report : Realty Corporation, an accrual-basis, calendar-year corporation, agrees to rent office space to Tenant Company for $3,000 per month beginning on January 1, year 2. On December 15, year 1, Tenant gives Realty Corporation a $3,000 deposit in addition t..
What choices does specialty training have as : At the end of October, year 1, Specialty Training, an accrual-basis, calendar-year taxpayer, was hired by Dunbar Company to provide a six-week training program for its employees. Specialty was paid its full training fee of $30,000 on the first day of..
What is beta corporation’s tax liability for its short tax : Beta Corporation received permission to change its tax year from a calendar year to a year ending August 31. Its income for the eight months ended August 31 is $96,000.
Explain number these in order of ease of hydrolysis : Number these in order of ease of hydrolysis. 1= easiest to hydrolyze 4=hardest to hydrolyze C6H5C(=O)OC66H5 C6H5C(=O)OCl C6H5C TRIPLE BOND N C6H5(=O)NHC6H5

Reviews

Write a Review

Macroeconomics Questions & Answers

  Best practices of government agencies

Choose one best practice from an organization or management that you are familiar with, and then whether that best practice can be implemented into the culture of a governmental entity and how it can improve service delivery to its citizens.

  Current status of real gdp and unemployment rate

Describe the current status of Real GDP and unemployment rate and inflation rate.

  Explain how to conduct an f-test of joint significance

In a multiple regression model using 310 students to explain college grade point average, the following explanatory variables are initially included in the regression: high school GPA, ACT score, number of credits completed, mother's years of educ..

  What must and entrepreneur do to earn a profit

What must and entrepreneur do to earn a profit? (2) How do the actions of firms earning profits influence the value of resources? (3) What happens to the value of reseources when losses are present?

  Elucidate how banks and individuals can use

Elucidate how banks and individuals can use "covered interest arbitrage" to protect themselves when they make international financial investments.

  Determine what choice the other prisoner will make

The classic prisoner's dilemma involves two suspects, A and B, who are arrested by the police. Because the police have insufficient evidence for conviction on a key charge, they place the prisoners in isolation and offer each.

  What will happen to markets for grapes-berries and grape

Suppose that an innovative way of picking grapes is being used and is much cheaper than doing it manually. Unfortunately, it does not work for berries, which are a substitute for grapes. Explain fully what will happen to the markets for grapes, be..

  Why has the price of sushi remained constant

Scorching heat and the worst drought in nearly a half-century are threatening to send food prices up, spooking consumers and leading to worries about global food costs. On Wednesday, the government said it expected the record-breaking.

  Question about marginal propensity to consume

The marginal propensity to consume equals 0.3, and the marginal propensity to import is 0.1. If Americans suddenly increase their desire for European cars and the MPm raise to 0.3,

  Explain what has happened to the price of drugs

A survey show an increase in drug use by young people. In the ensuing debate, two hypotheses are proposed: Reduced police efforts have increased the availability of drugs on the street. Cutbacks in educationefforts have decreased awareness of the dan..

  Calculate the profit-maximizing long-run supply

The Los Angeles retail market for unleaded gasoline is fiercely value competitive. Suppose situation faced by a typical gasoline retailer when the local market price for unleaded gasoline is $2.50

  Explain why do companies grant discounts to senior citizens

explain why do companies grant discounts to senior citizens and students

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd