Hammond, Inc., sells a building that it purchased in 2002 for $1,500,000. The building cost $1,000,000 and had an adjusted basis of $700,000 on the date of the sale.
I.Hammond has an $800,000 Section 1231 gain on the sale.II.Hammond must report $300,000 of Unrecaptured Section 1250 gain.?
A. Only statement I is correct.
B. Only statement II is correct.
C. Both statements are correct.
D. None of the statements are correct.
Answer: D
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Westmoreland Company Following are selected data from Westmoreland Company's financial statements. 2017 2016 Current liabilities $230,000 $160,000 Long-term debt 120,000 320,000 Stockholders' equity 420,000 540,000 Cash payments for additions to plant and equipment 45,000 32,000 Net cash flow from operating activities 80,000 51,000 Interest and principal payments 12,000 8,000 Net operating cash
flows before interest and taxes 68,000 43,000 Net income 90,000 72,000 Interest expense 8,500 11,500 Income taxes 16,000 14,500 Dividends paid 15,000 30,000 Refer to the Westmoreland Company data. The company's debt-to-equity ratio was 0.83 to 1 in 2017 and 0.89 to 1 in 2016 . Which of the following statements is true concerning Westmoreland? a. The company has a smaller percentage of capital from owners at the end of 2017 than at the end of 2016. b. The company relied more on creditors for financing during 2017 than in 2016. c. The company is improving its debt-to-equity ratio. d. The company appears to be in a weaker position at the end of 2017 to finance capital expenditures from cash flow generated by operating activities.
Without authorization, Lars contracts on behalf of Mina to have Nemo paint Mina’s Boutique. If Mina decides to ratify the contract, she must affirm
A. all of the contract. B. any part of the contract, with Lars liable to Nemo for the difference. C. any part of the contract before performance begins. D. any part of the contract at any time.
Tess has talked with her boyfriend about her problems at work, and he has convinced her to take action instead of complaining to him. Tess texts her boss, Jim, a list of the issues that are causing her stress and dissatisfaction at work. She doesn’t understand why Jim seems extremely unhappy with her when she arrives at work the next day. What is likely the source of her boss’s displeasure?
a. Tess’s problems are not Jim’s problems, and he cares only about her work performance. b. Texting was an inappropriate channel for upward communication of this nature. c. Jim expects complaints to be communicated formally, via letter or memo. d. Tess is taking her work too seriously and creating a defensive work environment.
Vanguard Group is very careful about acquiring the right type of customer
Indicate whether the statement is true or false