4-25 Billy Dent‚ as the owner of an apartment building‚ receives and makes the following payments during 2011: How much rental income must Billy Dent include on his 2011 income tax return? 5‚000+4‚000= $9‚000 4-32 Arnold and Barbara Cane were divorced in June 2011. Pursuant to the divorce decree‚ Arnold is obliged to perform as follows: a. Transfer title of their personal home to Barbara. They purchased the house in 1998 and their basis today is $400‚000. The fair market value of
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delays. Assuming that Canary Wharf is able to get the necessary transportation approvals‚ Canary Wharf ’s projected cash flows should be discounted at 12.5% in order to mitigate risks to be faced. Given this discount rate‚ as well as considering all taxes‚ debt obligations‚ rents and rent-free periods‚ and all construction costs‚ an appropriate bid on the developable sites at Canary Wharf is ₤809‚000 (the Net Present Value of the cash flows‚ discounted at 12.5%). Please see Exhibit 1 for a detailed
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National Railroad Passenger Corporation (“Amtrak”): Acela Financing Teaching Note In the late 1990s‚ the National Railroad Passenger Corporation (Amtrak) faced a rude awakening as the U.S. Congress stipulated that Amtrak eliminate its reliance on federal subsidies by 2002. In response‚ Amtrak drew up a plan for self-sufficiency‚ the centerpiece of which was a new‚ high-speed passenger service that it hoped would boost revenue enough to make Amtrak self-sufficient by 2002. To run this new service
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raw material 3‚900 Total 6‚010 2) Calculate indirect production costs d) indirect labor costs 2‚900 e) other selling and administrative 400 f) Deprecation on factory building 380 g) Rental for space for managing 170 h) Rental for ware house space to 310 i) Insurance on factory and 360 j) Indirect material used 490 k) Depreciation on factory 210 l) Electricity for factory 600 m) Electricity for sale and adult
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States branch (Note 2) 37‚500 Interest income from Canadian sources (Note 3) 58‚750 Dividends from taxable Canadian corporations (Note 4) 81‚250 Taxable capital gains 25‚000 Recapture of CCA (Note 5) 66‚250 Rental income from United Kingdom (Note 6) 43‚750 Division B income $635‚600 Deductions: Donations $18‚750 Dividends from taxable Canadian corporations 81‚250 Non-capital losses 56‚250 Net capital losses 12‚500 168‚750 Taxable
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which accounts for the majority of property tax. Many live in apartments or in some sort of rental house. Therefore‚ property tax should be taken out of the picture as it is the most unfair and is significantly targeted towards retirees and homeowners. Also‚ if once the owners of houses pass away and ownership of property is handed down to the next generation and they are unable to pay the property taxes due to the increase then ultimately the property will be loss. Another factor to consider is
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server room and a kitchen area.12 The current rental was HK$970‚000 per annum. Office space with similar characteristics was widely available in the territory‚ although average rents varied from location to location. Central‚ Wanchai and Causeway Bay were the traditional homes of business on Hong Kong Island. In addition‚ a significant cluster of Grade A offices had been developed in North Point. For the same grade of office space‚ however‚ average rentals in Central were relatively expensive [see
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such as food‚ clothes and other living necessity but also the housing services included in the market value. By measuring GDP this way‚ many business activities like market rental housing reflect the market value and become indicators of the market. Moreover‚ volume of owner-occupied housing can be used to measure the market rental value of a country. Nevertheless‚ according to Abel et al (2008)‚ although this measurement of GDP encompasses a number of goods and services‚ it still does not cover some
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One of the intentions was to lower the dependence on trade taxes‚ which reduced incentives for production‚ and to rely instead on indirect taxes on goods and services. Indirect taxes provided an average of 79.8 percent of total revenue between 1990-1998. Taxes on income and profits have steadily increased from 9.8 percent of total revenue in 1989 to 15.2 percent in 1998. Yet‚ of total taxes‚ about 50 percent still emanates from indirect taxes on only 4 products—petroleum‚ cigarettes‚ beer‚ and soft
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Microeconomics Week 4 Homework Chapter 6: #4 An explicit cost is the monetary payment a firm must make to an outsider to obtain a resource. An implicit cost is the monetary income a firm sacrifices when it uses a resource it owns rather than supplying the resource in the market. Say you owned a deli shop. Examples of explicit costs would be the salaries of your employees‚ the cost of the building (electricity‚ plumbing‚ etc.) and all the different ingredients and foodstuffs you need to
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