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Joshua sold his bike for 10% less than he paid for it. If he sold the bike for $585, how much did he pay for it?
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- On Robin’s birthday, his grandmother gave him a ring that was worth $6,000 at the time of the gift. Robin’s grandmother had purchased the ring for $5,400. What is Robin’s basis in the ring if he sells it for $7,000? What if he sells it for $5,000? What if he sells it for $5,800? fill in the blank regardless of sales priceWade paid 7,000 for an automobile that needed substantial repairs. He worked nights and weekends to restore the car and spent 2,400 on parts for it. He knows that he can sell the car for 13,000, but he is very wealthy and does not need the money. On the other hand, his daughter, who has very little income, needs money to make the down payment on a house. a. Would it matter, after taxes, whether Wade sells the car and gives the money to his daughter or whether he gives the car to his daughter and she sells it for 13,000? Explain. b. Assume that Wade gave the car to his daughter after he had arranged for another person to buy it from his daughter. The daughter then transferred the car to the buyer and received 13,000. Who is taxed on the gain?When Barry’s grandmother passed away, she gave Barry a diamond ring that was worth $6,000 at the time of death. Barry’s grandmother had purchased the ring for $5,400. What is Barry’s basis in the ring if he sells it for $7,000? What if he sells it for $5,000? What if he sells it for $5,800?
- 7. Kamden has a deductible of $1,500. He damages his car in an accident and it will cost $3,900 to repair. How much does Kamden have to pay? How much does his insurance pay?Norris has a deductible of $1,000. He damages his car in a accident and it will cost $3,300 to repair. How much does Norris have to pay? How much does this insurance pay?Mary owns a home with a with a replacement value of $331,195. She purchased home insurance in the amount of $200,000, and therefore does not meet the 80% rule. If Mary's deductible is $3,000 and a BBQ fire caused $75,000 worth of damage, how much will Mary have to pay herself?
- Ricardo's car was damaged in an accident. The cost to repair the car will be $3,240. His deductible is $500. How much will Ricardo's insurance company pay?I hire Susan to sell my house. I tell her that I'm hoping to get $200,000 for the house. She tells me she needs $2,000 to make repairs on the house before it is listed for sale. I give her the $2,000. She takes my money but never makes the repairs. The house sells for $220,000. If Susan is ordered to pay restitution, she will have to pay $ 2000Mike just received his income tax refund of $1600, and he needs $1850 to buy a new couch. If his money can earn 3 3/8% simple interest, how long must he invest his money?
- Gary wants to save $555,000 in 5 years, he currently has $225,000 in an investment. Due to financialconstraints, he is unable to add to this investment. What interest rate must he earn to achieve his goal?Gary wants to save $555,000 in 5 years, he currently has $225,000 in an investment. Due to financial constraints, he is unable to add to this investment. What interest rate must he earn to achieve his goal?Hank purchased a $20,000 car two years ago using a 9 percent, five-year loan. He has decided to sell the new car now, if he could get a price that would pay off the balance of his loan. What's the minimum price Hank would need to receive for his car?
