Answer and Explanation:
Liquidating distribution in the problem are made in accordance to the preferred stock.since the activity may not meet the section 322 requirement,the section 322 rules will not apply to the case cited in the problem.This means parents has to recognize a capital loss of $50,000 on the distribution,the capital loss can only be used to offset capital gains.
Under the section 165(g)(3) rules for affiliated cooperation's worthlessness securities,parents can recognize an ordinary loss of $500,000 on the common stock.The ordinary loss can be sued to offset ordinary income.
Answer:
True
Explanation:
These emblematic cases force the legislation to demand more transparency to avoid a future financial crisis
Answer:
B. A violation of establishment of responsibility
Explanation:
They both should have established something different to work on but for both of them to work the same cash register, it is a violation of establishment of responsibility
Answer:
Materials = 19,600 units
Conversion Costs = 19,600 units
Explanation:
It is important to note that the company uses the weighted average method.
This means we are only interested in the equivalent units of units completed and transferred and units in ending work in process
The equivalent units of production for the month, assuming the company uses the weighted average method :
Materials = 14,000 x 100 % + 14,000 x 70% = 19,600 units
Conversion Costs = 14,000 x 100 % + 14,000 x 70% = 19,600 units