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Korvikt [17]
3 years ago
6

Jeremy operates a business as a sole proprietorship. The proprietorship uses the cash method of accounting. He decides to incorp

orate and transfers the assets and liabilities of the sole proprietorship to the newly formed corporation in exchange for its stock. The​ assets, which include​ $10,000 of accounts receivable with a zero​ basis, have a basis of​ $20,000 and an FMV of​ $40,000. The liabilities include accounts payable of​ $12,000, which will be deductible when​ paid, and a note payable on medical equipment of​ $7,000. Jeremy's basis for his stock is
Business
1 answer:
ollegr [7]3 years ago
8 0

Answer:

$13,000

Explanation:

Given that:

Jeremy operates a business as a sole proprietorship which uses a cash method of accounting. Now he is planning transfer them into a new corporation in  exchange for its stock.

The assets are :

$10,000 of accounts receivable with a zero​ basis

have a basis of​ $20,000  and an FMV of​ $40,000

Liabilities

payable of $12,000

The note payable on medical equipment is​ $7,000.

Therefore , Jeremy's basis for his stock is : $20,000 -$7,000 = $13,000

since  that will reduce the  basis by amount of the note payable.

The liabilities payable will be deducted and taken care of by the corporation.

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Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs Pool Cost Driver Ove
mylen [45]

Answer:

$200

Explanation:

As for the information provided,

Quality control rate = \frac{72,000}{1,200} =\ $60 per hour

Machine operation = \frac{150,000}{1,500} =\ $100 per hour

Material Handling = \frac{1,200}{30} =\ $40\ per batch

Miscellaneous Overhead = $\frac{57,000}{5,700} =\ $10 per hour

The order of 1,000 laser printers

Require:

Quality control cost = $60 \times 265 = $15,900

Machine operation = $100 \times 225 = $22,500

Material Handling = $40 \times 5 = $200

Miscellaneous Overheads = $10 \times 740 = $7,400

Therefore, correct option is:

$200

0 0
3 years ago
Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price flo
DerKrebs [107]

Answer: the quantity demanded of physicals decreases and the quantity of physicals doctors want to give increases.

Explanation:

Since the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price floor of $250 per physical, there will be a reduction in the quantity demanded of physicals decreases and the quantity of physicals doctors want to give increases.

This is because since the price is higher than the equilibrium price, the consumers will reduce their demand for the product while the suppliers will e willing to supply more in order to make more profit.

8 0
2 years ago
The VP of Marketing directs you to begin looking at markets for Powerfully Fit's products: "Assuming that we focus on the desire
yawa3891 [41]

Options:

a) Gym Newbie: This largest market is new to fitness and working out. Gym newbies work out once a week and are price sensitive about their fitness spending.

b) Weekend Warriors: This large market works out 2-3 times a week and mixes up running with gym time. Weekend warriors typically purchase mid-level shoes and apparel and use a fitness app on their phone to track their workouts.

c) Marathon Madness: This mid-size market works out daily. Workouts often include long distance runs. Quality, durable products are attractive to this market, and marathoners are willing to pay premium prices to get the latest tech.

Answer:

C)

Explanation:

The VP of Marketing has directed you to search for a target market that values fitness technology functionality and are willing to pay for it. Gym newbies and weekend warriors might value the functionality but can get similar products at a lower costs since their needs are very basic.

You need people that workout constantly and for long periods of time. This type of clients really need high quality and durable products, so they are willing to pay for them. These guys and girls are not going to go around running and watching their cellphones, they are trying to improve their performance, not to worsen it. They are constantly looking for ways to be better athletes and train harder, and any help they can get is very valuable for them.

4 0
3 years ago
John has to choose between two jobs: one that offers him $50 per hour and one that offers him $35 per hour. the opportunity cost
Viefleur [7K]

Answer:

$35 per hour

Explanation:

Data provided;

The John has 2 alternatives to choose from

Alternative 1 offers him $50 per hour

Alternative 2 offers him $35 per hour

John opts for the Alternative 1 i.e $50 per hour

Now,

The opportunity cost is given as the next high valued alternative and for the given question, we have the next high valued alternative of $35 per hour

Hence,

the opportunity cost of choosing the alternative 1 i.e job offering $50 per hour is $35 per hour

4 0
3 years ago
Currently, it is not clear which, if any, laws apply to the security of e-money payment information.
Free_Kalibri [48]
I'm pretty that would be: A.) True.
5 0
3 years ago
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