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Mama L [17]
3 years ago
6

Clampett, Inc., has been an S corporation since its inception. On July 15, 2020, Clampett, Inc., distributed $49,000 to J.D. His

basis in his Clampett, Inc., stock on January 1, 2020, was $48,000. For 2020, J.D. was allocated $12,000 of ordinary income from Clampett, Inc., and no separately stated items. What is J.D.'s basis in his Clampett, Inc., stock after all transactions in 2020
Business
1 answer:
maria [59]3 years ago
4 0

Answer:

$11,000

Explanation:

The basis an investment refers to the asset's original value which is adjusted for capital distributions, stock slits, and dividends.

The J.D.'s basis in his Clampett, Inc. stock after all transactions in 2020 can therefore be computed by adjusting the original basis as follows:

Basis after all the 2020 transactions = Original basis or 1 Jan. 2020 basis + Allocated income - Distribution = $48,000 + $12,000 - $49,000 = $11,000

Therefore, .D.'s basis in his Clampett, Inc., stock after all transactions in 2020 is $11,000.

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Answer:

a. should be discouraged because it lessens a quality that makes that antique desirable

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In pricing theory, the price for a good or service should increase as its scarcity increases. Now selling the antique at a bargain price will reduce the price of it and thereby making it less scarce and rare.

8 0
3 years ago
Some estimates have been presented to Charlene, the Director of Operations (DO) at Holly Farms, which is considering alternative
Marina CMI [18]

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

First, we need to sort out the data given properly, so that we can answer to the best.

Data Given:

For Chamber D103:

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Annual Operating Cost Per Year = -4000 USD

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Life = 3 years

Similarly,

For Chamber 490G:

For Chamber D103:

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Annual Operating Cost Per Year = -3000 USD

Salvage Value 10% of P = 25,000 USD

Life = 2 years

a.

For Chamber D103

AW Chamber D103 = -400,000 x (A/P, 10%, 3) + 40000 x (A/F,10%, 3) - 4000

So,

(A/P, 10%, 3) = 0.40211    (from the compound interest table )

(A/F,10%, 3) = 0.30211

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AW Chamber D103 = -152,760 USD

For Chamber 490G:

AW Chamber 490G = -250,000 x (A/P,10%,2) + 25000 x (A/F,10%, 2) - 3000

So,

(A/P,10%,2) = 0.5762

(A/F,10%, 2) = 0.4762

AW Chamber 490G = -250,000 x 0.5762 + 25000 x 0.4762 - 3000

AW Chamber 490G = -135,143 USD

So, after evaluating both the chambers using the AW method, more economical is the chamber 490G.

b.

Now, we need to change the values to check whether the chamber selection can be changed or not:

so, New values for Chamber D103

P = -300,000 and Salvage value of 30,000

For Chamber D103

AW Chamber D103 = -300,000 x (A/P, 10%, 3) + 30000 x (A/F,10%, 3) - 4000

So,

(A/P, 10%, 3) = 0.40211    (from the compound interest table )

(A/F,10%, 3) = 0.30211

AW Chamber D103 = -300,000 x 0.40211 + 30,000 x 0.30211 - 4000

AW Chamber D103 = -115,570 USD

New Values for Chamber D103

P = -500,000 and the Salvage Value = 50,000

AW Chamber D103 = -300,000 x (A/P, 10%, 3) + 30000 x (A/F,10%, 3) - 4000

So,

(A/P, 10%, 3) = 0.40211    (from the compound interest table )

(A/F,10%, 3) = 0.30211

AW Chamber D103 = -500,000 x 0.40211 + 50,000 x 0.30211 - 4000

AW Chamber D103 = -189,950 USD

Hence,

At P = 300,000 will definitely change the selection to D103 Chamber.

8 0
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Answer:

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