Ratliff Development Corporation purchases a tract of land in 2015 at a cost of $120,000 and subdivides
Question:
Ratliff Development Corporation purchases a tract of land in 2015 at a cost of $120,000 and subdivides the land into 30 building lots. The cost of subdividing is $6,000. In 2015, Ratliff installs roads and utilities at a cost of $36,000 and pays property taxes totaling $2,000 in 2015 and 2016. Interest paid on the loan used to purchase the land is $10,000 in 2015 and $6,000 in 2016. In 2016, Ratliff sells 10 lots for a total of $350,000. What is the corporation's gain or loss on the sale of the lots?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Ratliff has a gain of 296000 350000 5400 x 10 on the sale The ...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
1+ Reviews
10+ Question Solved
Related Book For 
Concepts In Federal Taxation 2017
ISBN: 9781305965119
24th Edition
Authors: Kevin E. Murphy, Mark Higgins
Question Posted:
