Andrew Whiting (single) purchased a home in Boise, Idaho, for $300,000. He moved into the home on July 1 of year 1. He lived in the home as his primary residence until November 1, year 2, when he sold the home for $470,000. Andrew sold the home because he was changing jobs and his new job was in a different state. What amount of gain must Andrew recognize on the home sale in year 2?
What will be an ideal response?
$3,333 gain recognized.
$170,000 gain realized minus $166,667 exclusion. Under the hardship circumstances test, Andrew is allowed to exclude $250,000 × 16/24 = $166,667.
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For a company whose target capital structure calls for 50% debt and 50% common equity, which of the following statements is CORRECT?
A. The interest rate used to calculate the WACC is the average after-tax cost of all the company's outstanding debt as shown on its balance sheet. B. The WACC is calculated on a before-tax basis. C. The WACC exceeds the cost of equity. D. The cost of equity is always equal to or greater than the cost of debt. E. The cost of retained earnings typically exceeds the cost of new common stock.
What is one major way that Web-based social media is the same as publishing media?
A) They cost the same to publish. B) They have the same immediacy of updates. C) They require the same skill and training to publish. D) They can both reach a global audience.
Indicate which of the following general ledger accounts are temporary (T) or permanent (P). a.Cash b.Accounts Receivable c.Accounts Payable d.Prepaid Insurance e.Fees Earned f.Insurance Expense g.Accumulated Depreciation-Equipment h.Owner, Drawing i.Owner, Capital j.Income Summary
What will be an ideal response?
Network protocols fulfill all of the following objectives except
A. facilitate physical connection between network devices B. provide a basis for error checking and measuring network performance C. promote compatibility among network devices D. creation of inflexible standards