Answer:
Explanation:
a. . What gain or income, if any, will the parties recognize on the transfer?
It should be noted that a gain or a loss will not be recognized when a property is being transferred to a company in order for the said property to be exchange for a stock. Therefore, none of the parties that are involved will get any gain or income.
b. What basis do Ann and Bob have in the stock in Robin Corporation?
Based on the question, Ann will have a basis of $150,000 while Bob will get ($30,000 + $15,000) = $45,000 in the stock in Robin Corporation.
c. What is Robin Corporation's basis in the property and services it received from Ann and Bob?
Robin Corporation's basis in the property and services it received from Ann and Bob is a value of $150,000 for the assets of Ann and $30,000 for Bob's asset.
Answer:
See Explanation
Explanation:
(a)
Journal entry to record the transaction is,
Particulars Debit Credit
Land and Building (460000 + 520000) $980,000
Cash Paid $360,000
Mortgage Payable (980,000 - 360,000) $620,000
We assume that 4% interest is chargeable each semiannual payment and that each subsequent payment is charged 4% on the remaining amount of principal minus any preceding principal payments.
(b)
First installment = Principal + Interest payable
= 31,000 + (620,000 * 0.04) = $55,800
(c)
Second payment = 31,000 + [(620,000 - 31000) * 0.04] = $54,560
Since the chart of accounts is not provided you can confirm the the account headings.
Hope that helps.
Answer:
Price ceiling
Explanation:
When the government imposed a price ceiling in a market of goods which means that price set by the government lies below the equilibrium price of an economy. Price ceiling results in a higher demand for the goods because people wants to buy more quantity of goods at a lower price. But supplier of the goods wants to reduce supply as it will become less profitable for the producers to sell the product at a lower price.
A free market economy is when the prices of supply and demand are free from the government. Meaning they can charge whatever they want and the government has to say. So answering your question they can just charge less if they felt like it since they have free reins of the prices.
A command economy is the opposite whereas supply and demand prices are determined by the government and the government only. The government would probably not change the prices because the government sucks.
(A mixed economy is the best way to achieve that)
<span>The answer is C. Productivity is the ratio of outputs to inputs.
This answer is correct because productivity is a measure of efficiency, and is not a measure of quantity, profit (revenue), or quality. Productivity is the measure of effectiveness in converting inputs to outputs.</span>
