Central City, Inc. has incurred a $50,000 loss on property due to an earthquake. Earthquakes have...

Central City, Inc. has incurred a $50,000 loss on property due to an earthquake. Earthquakes have occurred in this region. What amount will be reported for this loss on company's income statement, assuming a 30% tax rate?

A) $50,000

B) $35,000

C) $15,000

D) Zero, due to the fact that this event is infrequent in nature.

Expert Solution

Extra ordinary loss due to an earth quake = $ 50,000

Less: Tax saving @ 30% = $ 15,000

Loss reported in income statement = $ 35000

Answer (b)

note: dont give a direct thumbs down if you are not satisfied with the answer . comment your doubts in the command box. if you are satisfied with the answer give thumbs up or like.

ekkarill92 answered 4 months ago

When we are in a lawsuit that a loss was incurred by Third-party due to reliance...

When we are in a lawsuit that a loss was incurred by Third-party due to reliance on misleading financial statements. The auditor has the burden of demonstrating as a defense that an adequate audit was conducted. So how we can prove that we already do an adequate audit? Is the court will suporting the auditor or not when the laypeople with no accounting experience make up the jury.? explain please

During 2019,Alonzo incurred one personal casualty loss due to a federally declared major disaster . The...

During 2019,Alonzo incurred one personal casualty loss due to a federally declared major disaster . The amount of the loss after reimbursements is $6500. Alonzo's AGI is $40,000 . What is the amount of his casualty loss deduction A. $1,550 B. $1.950 C. $5,550 D, $ 6,050

Tanner, Inc. incurred a financial and taxable loss for 2021. Tanner therefore decided to use the...

Tanner, Inc. incurred a financial and taxable loss for 2021. Tanner therefore decided to use the carryback provisions as it had been profitable up to this year. How should the amounts related to the carryback be reported in the 2021 financial statements?

Cherry Creek Inc. is considering expanding to another city; the project will cost $50,000 and is...

Cherry Creek Inc. is considering expanding to another city; the project will cost $50,000 and is expected to generate after-tax cash flows of $10,000 per year in perpetuity. The firm has a target debt/equity ratio of 0.5 and the new equity has a flotation cost of 10% and a required return of 15%, while new debt has a flotation cost of 5% and a required return of 10%. The tax rate is 34%. Calculate the cost of capital. Calculate the...

You have saved $50,000 to use as a down payment for some property and to build...

You have saved $50,000 to use as a down payment for some property and to build a home. The home is in a prime building location that has trees and a stream running through the property. The clearing of the land and the building of the house will cost a total $650,000. a. How much money will you need to borrow through a loan for your home? b. The bank offers to finance your purchase with a 25-year amortized loan with a...

3. A personal property asset has a purchase price of $50,000 and an installation cost of...

3. A personal property asset has a purchase price of $50,000 and an installation cost of $10,000. Book depreciation method is the sum-of-years-digits method with a 6-year depreciable life and a $3,000 salvage value. Which one of the following values is correct (rounded to the nearest integer)? (a) D3 = $11,429 (b) B4 = $8,571 (c) B5 = $5,429 (d) D6 = $2,714 4. On January 1st 2009, a company purchased a machine for $14,000, which is a 7-year MACRS...

Company ABC has liabilities of 20,000, 50,000, and 70,000 due at the end of years 1,...

Company ABC has liabilities of 20,000, 50,000, and 70,000 due at the end of years 1, 2, and 3 respectively. The company would like to exactly match these liabilities using the following assets: A one-year zero coupon bond with a yield of 4% A two-year zero coupon bond with a yield of 5% A three-year coupon bond with annual coupons of 6% and a yield of 5.5% What is the total cost of the asset portfolio that will match the...

The city has the power to take private property for public use.The Fifth Amendment to...

The city has the power to take private property for public use. The Fifth Amendment to the U.S. Constitution states, ". . . nor might private property be taken for open use, without just pay." The Supreme Court has held this applies to state and neighborhood, and in addition the elected, government. Richmond must pay the Neelans a reasonable cost for their genuine property. This, by and large, means the sensible market esteem. On the off chance that the Neelans...

Suppose that an appraiser has come to the following conclusions in evaluating the subject property. Due...

Suppose that an appraiser has come to the following conclusions in evaluating the subject property. Due to the dramatic shift in the perceived safety of the neighborhood, values of any residential properties in the area of the subject property have fallen by $85,000, on average. Due to the subject property's age, physical deterioration to the building accounts for an estimate of $65,000 in lost value. An evaluation of the floor plan reveals that it is quite obsolete relative to current...

You will have a property tax payment due in 12 months that will cost $5,618. How...

You will have a property tax payment due in 12 months that will cost $5,618. How much do you have to invest today to have just enough to pay your property tax bill if your investments earn 5.82% APR (compounded monthly)?

Question