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nadezda [96]
3 years ago
15

Carl transfers land with a fair market value of $120,000 and basis of $30,000, to a new corporation in exchange for 85 percent o

f the corporation's stock. The land is subject to a $45,000 liability, which the corporation assumes. What amount of gain must Carl recognize as a result of this transaction?
Business
1 answer:
Lera25 [3.4K]3 years ago
6 0

Answer: $15,000

Explanation:

From the question, Carl transfers land with a fair market value of $120,000 and basis of $30,000, to a new corporation in exchange for 85 percent of the corporation's stock and that the land is subject to a $45,000 liability, which the corporation assumes.

The amount of gain that Carl must recognize as a result of this transaction will be the difference between the liability the land is subjected to which is $45,000 and the basis of the land which is $30,000.

= $45,000 - $30,000

= $15,000

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Answer:

Bill is also equally and somewhere more liable as he is the employer.

Explanation:

Although in records it might seem that George did the falsify act, but for that he required the permission of his employer.

When the fact is clearly stated that George did this on direction of his employer Bill, and that Bill demanded this intentionally in order to present extra profits, he is more liable for this false act.

As George is the employee, he is bound  to follow the directions of his employer. Thus Bill is crucially liable for this act, as he is an important reason for this act.

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3 years ago
Olive Corporation has two divisions, Pressing and Extracting. The company's primary product is Lavender Oil. Each division's cos
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Answer:

$15,000

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5 0
3 years ago
Bear tracks, inc., has current assets of $2,180, net fixed assets of $9,400, current liabilities of $1,355, and long-term debt o
abruzzese [7]

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3 years ago
I am thirteen and need to make money what should I do?
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Answer:

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Explanation:

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