1. Nabeel owned a special purpose boat for use in a fishing business. The boat originally...

1. Nabeel owned a special purpose boat for use in a fishing business. The boat originally cost $9,000 and had a basis of $-0-. The boat that was worth $5,200 at the time was totally destroyed when it was blown by strong winds into large rocks.

How much can Nabeel deduct related to this casualty? Is this a deduction for AGI or from AGI?

2. Yeji frequently makes loans to suppliers that are suffering financial problems. At the beginning of the year, Yeji had outstanding loans of $8,000, $2,200 of which Yeji believed were uncollectable. At the end of the year, Yeji had outstanding loans of $6,000, $1,200 of which Yeji believed were uncollectable. During the year, Yeji determined that $1,800 of specific loans were worthless.

How much is Yeji’s bad debt deduction?

How would your answer differ if the debts were non-business debts?

Expert Solution

ekkarill92 answered 2 years ago

Intensive fishing in an area by a boat may increase profits earned by the boat owner.

Intensive fishing in an area by a boat may increase profits earned by the boat owner. However, if many boats excessively fish in the same area, the stock of fish will become depleted and all will be worse off. This is an example of

Alex, a commercial fisherman, owns a fishing boat with a $1,600,000 basis. The boat is destroyed...

Alex, a commercial fisherman, owns a fishing boat with a $1,600,000 basis. The boat is destroyed in a hurricane, and Alex collects $2,000,000 from the insurance company. He purchases another boat for $1,550,000. What is the amount of the gain recognized on the transaction? $400,000 $50,000 $450,000 $0

J.1) Which of the following is not an example of a use of special purpose funds?

J.1) Which of the following is not an example of a use of special purpose funds?A) Petty cash.B) Payroll.C) Bond repayment.D) Accounts receivable.J.2) Several years ago, Cayuga Capital acquired a $1 million insurance policy on the life of its chief executive officer, naming Cayuga Capital as beneficiary. Annual premiums are $20,000, payable at the beginning of each year. In 2021, the cash surrender value of the policy increased from $12,000 to $15,000 according to the contract. Cayuga's journal entry to record payment...

John Fillmore's lifelong dream is to own his own fishing boat to use in his retirement....

John Fillmore's lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritance of $500,000. He estimates that the boat he wants will cost $400,000 when he retires in 5 years. How much of his inheritance must he invest at an annual rate of 10% (compounded annually) to buy the boat at retirement? On January 15, 2010, Dolan Corp. adopted a plan to accumulate funds for environmental improvements beginning July...

The Skimmer Boat Company manufactures the Water Skimmer bass fishing boat. The company purchases the engines...

The Skimmer Boat Company manufactures the Water Skimmer bass fishing boat. The company purchases the engines it installs in its boats from the Mar-gine Company, which specializes in marine engines. Skimmer has the following production schedule for April, May, June, and July: Month Production April 60 May 85 June 100 July 120 Mar-gine usually manufactures and ships engines to Skimmer during the month the engines are due. However, from April through July, Mar-gine has a large order with another boat...

Scenario 1 – Holders and Holders in Due Course Greg sold Mitch a fishing boat for...

Scenario 1 – Holders and Holders in Due Course Greg sold Mitch a fishing boat for $8,500, maintaining to Mitch that the boat was in excellent condition. Mitch gave Greg a check for $8,500, which Greg endorsed and gave to Denise in exchange for a debt he owed her. When Mitch took his friends out on the boat, he discovered that the boat leaked, needed to be painted, and required a new motor. Mitch stopped payment on the check, which...

Acme Manufacturing, Inc. was originally a family owned operation that has been in business for several...

Acme Manufacturing, Inc. was originally a family owned operation that has been in business for several generations. It has grown steadily and is now listed on the stock exchange with family members still owning a substantial portion of the shares. Over the years, the company has acquired a reputation for exceptional quality and has won awards from major customers. The firm is 75% equity financed; shares currently trade at $37 and do not pay a dividend. Debt capital is provided...

Dean takes his boat out fishing every weekend. His current boat is still in okay condition,...

Dean takes his boat out fishing every weekend. His current boat is still in okay condition, but he decides he’d like to buy a new one. He finds the boat of his dreams for $20,950. He does some research and finds that his credit union will give him a 5-year loan with an APR of 4.25% if he makes a down payment of 18%. What is the amount of Dean’s down-payment? What is the loan amount that Dean will be...

Dean takes his boat out fishing every weekend. His current boat is still in okay condition,...

Dean takes his boat out fishing every weekend. His current boat is still in okay condition, but he decides he’d like to buy a new one. He finds the boat of his dreams for $20,950. He does some research and finds that his credit union will give him a 5-year loan with an APR of 4.25% if he makes a down payment of 18%. What is the amount of Dean’s down-payment? What is the loan amount that Dean will be...

9. If a fishing boat owner brings 10,000 fish to market and the market price is...

9. If a fishing boat owner brings 10,000 fish to market and the market price is $7 per fish, she will have $70,000 in total revenue. If the average variable cost of 10,000 fish is $4 and the fixed cost of the boat is $20,000, what is her profit? a. $1. b. $3. c. $1,000. d. $3,000. e. $10,000. 10. A firm is currently operating where the MC of the last unit produced = $64, and the MR of this...

Question

1. Nabeel owned a special purpose boat for use in a fishing business. The boat originally...

Solutions

Expert Solution

Related Solutions

Intensive fishing in an area by a boat may increase profits earned by the boat owner.

Alex, a commercial fisherman, owns a fishing boat with a $1,600,000 basis. The boat is destroyed...

J.1) Which of the following is not an example of a use of special purpose funds?

John Fillmore's lifelong dream is to own his own fishing boat to use in his retirement....

The Skimmer Boat Company manufactures the Water Skimmer bass fishing boat. The company purchases the engines...

Scenario 1 – Holders and Holders in Due Course Greg sold Mitch a fishing boat for...

Acme Manufacturing, Inc. was originally a family owned operation that has been in business for several...

Dean takes his boat out fishing every weekend. His current boat is still in okay condition,...

Dean takes his boat out fishing every weekend. His current boat is still in okay condition,...

9. If a fishing boat owner brings 10,000 fish to market and the market price is...