Answer:
c
Explanation:
purchasing ships to transport goods oversees
Answer:
-$40,000
Explanation:
Data provided as the question
FMV = $90,000
Assumed Liability = $80,000
Stock basis = $50,000
The computation of recognize is shown below:-
= FMV of property - Assumed Liability - Stock basis
= $90,000 - $80,000 - $50,000
Recognize Loss = -$40,000
Therefore for computing the recognize loss we simply deduct the assumed liability and stock basis from FMV of property.
Answer:
The correct answer is Option B.
Explanation:
Dividend is simply synonymous to a profit from stockholder's investment (usually in form of shares). Dividend is usually declared when the company that the stockholder invests in is performing well.
On November 15 when the dividend declared was recorded, the following journals would have been recorded:
Debit Retained earnings ($5 x 20,000) $100,000
Credit Dividend payable $100,000
<em>(To record declaration of dividend)</em>
However, when it became payable on November 30, 2018, the dividend payable account has to be debited as follows:
Debit Dividend payable $100,000
Credit Cash $100,000
<em>(To record dividend paid to stockholders)</em>
Answer:
$0
Explanation:
The basis for a Section 351 transfer = fair market value of the property - assumed liabilities = $80,000 - $75,000 = $5,000
Since Buster controls Bronco Corporation (he owns 100%) and he exchanged the property for common stock, no gain or loss should be recognized, neither by Buster or the corporation. All that must be recognized is the new basis for the asset ($5,000).
