Clarise bought a building three years ago for $180,000 to use in her business. The straight-line method of depreciation was used and $15,000 of depreciation deductions were allowed. During the current year, Clarise sells the building to her wholly owned corporation for $235,000. The tax results to Clarise are
A. $70,000 of Sec. 1231 gain.
B. $55,000 ordinary income and $15,000 Sec. 1231 gain.
C. $70,000 ordinary income.
D. $15,000 of ordinary income and $55,000 Sec. 1231 gain.
Answer: C
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After a valid deed is delivered from a grantor to grantee, the:
A. title is still not effectively conveyed till witnessed by two people. B. grantee should immediately record the deed. C. interest of a grantor cannot be defeated by third parties. D. grantee should post a "legal notice" in the newspaper.
South Bay Manufacturing began business on January 1. During its first year of operation, South Bay worked on five industrial jobs and reported the following information at year-end:
South Bay's allocation of overhead costs left a debit balance of $1400 in the Manufacturing Overhead account, which was adjusted to zero at year-end. What was the amount of gross profit earned during the year?
A) $26,700
B) $2400
C) $28,100
D) $22,900
Profit center service desks are under increasing pressure to analyze and control their costs, market the value of their services, and without alienating customers, charge a premium for "customized" services; however, cost center service desks are not under these same pressures.
Answer the following statement true (T) or false (F)
_______ captures the perceived continuity or growth in the relationship between two firms
It entails a desire to develop a stable relationship, a willingness to make short-term sacrifices to maintain the relationship, and a confidence in the stability of the relationship. a. Bridging b. Trust c. Commitment d. Guarantee