Procrastination is the process of

ABC Corporation distributes property to its sole shareholder, Andre. The property has a fair market value of $350,000, an adjust

saul85 [17]

Answer:

ABC has a gain of $145,000 and Andre's dividend income is $130,000

Explanation:

Property ABC issued, has the following:

fair market value = $350,000

Adjusted basis = $205,000

Liability = $220,000

Calculate ABC's Corporation gain:

Gain = market value - Adjusted basis

= $350,000 - $205,000

= $145,000

ABC has a gain of $145,000

Calculate Andre's dividend income since he is the sole shareholder:

Dividend earnings = fair market value - liability

= $350,000 - $220,000

= $130,000

Andre's dividend income is $130,000

Correct option is D.

With respect to distribution, ABC has a gain of $145,000 and Andre's dividend income is $130,000

8 0

3 years ago

A University of Iowa basketball standout is offered a choice of contracts by the New York Liberty.

Ratling [72]

Answer: The lowest interest rate at which the present value of the second contract exceeds that of the first is a. 7 percent.

Explanation:

Calculating present values is a useful way to compare cases where money is to be received in the future. The higher the present value (when comparing cases where you get money), the better. To calculate it, we make use of the next formula:

$PV=\frac{C}{(1+r)^{n}}$

Where PV: Present value,

C: Cash flow at a given period,

r: Interest rate, and

n: Number of periods that will have passed (in this case, we are talking about years).

Now, since we are getting money twice in each case (the first payment one year from today, and the final payment two years from today), we can restructure our present value formula to include these two payments. We will get something like this:

$PV=\frac{C_1}{1+r}+\frac{C_2}{(1+r)^{2}}$

Notice how each fraction represents one of the payments received, with one having an 'n' of 1 year, and the other one having an 'n' of 2 years. C₁ and C₂ represent the first and the second payment, respectively.

Now that we have our completed formula, let's review each contract's present value (PV) with the lowest interest rate (7%), just to see how it turns out. Remember that 7% equals 0.07 in any formula:

Contract A) This one gives her $100,000 one year from today and $100,000 two years from today.

$PV_{A,0.07}=\frac{100000}{1+0.07}+\frac{100000}{(1+0.07)^{2}}\\PV_{A,0.07}=93457.944+87343.873\\PV_{A,0.07}=180801.817dollars$

So Contract A's present value at 7% interest rate would be equal to $180801.817.

Contract B) The second one gives her $132,000 one year from today and $66,000 two years from today.

$PV_{B,0.07}=\frac{132000}{1+0.07}+\frac{66000}{(1+0.07)^{2}}\\PV_{B,0.07}=123364.486+57646.956\\PV_{B,0.07}=181011.442dollars$

So Contract B's present value at 7% interest rate would be equal to $181011.442, which exceeds that of Contract A.

Since among our options of interest rates, 7 percent is the lowest one, and, with this taken into account, the present value of the second contract (Contract B) exceeded that of the first (Contract A), the answer is a. 7 percent.

8 0

3 years ago

Included in Sage Company’s December 31, 2020, trial balance are the following accounts: Prepaid Rent $5,870, Debt Investments (t

Sunny_sXe [5.5K]

Answer:

Step 1:

Start by setting it up with the divisor 20 on the left side and the dividend 16 on the right side like this:

2 0 ⟌ 1 6

Step 2:

The divisor (20) goes into the first digit of the dividend (1), 0 time(s). Therefore, put 0 on top:

0

2 0 ⟌ 1 6

Step 3:

Multiply the divisor by the result in the previous step (20 x 0 = 0) and write that answer below the dividend.

0

2 0 ⟌ 1 6

0

Step 4:

Subtract the result in the previous step from the first digit of the dividend (1 - 0 = 1) and write the answer below.

0

2 0 ⟌ 1 6

- 0

1

Step 5:

Move down the 2nd digit of the dividend (6) like this:

0

2 0 ⟌ 1 6

- 0

1 6

Step 6:

The divisor (20) goes into the bottom number (16), 0 time(s). Therefore, put 0 on top:

0 0

2 0 ⟌ 1 6

- 0

1 6

Step 7:

Multiply the divisor by the result in the previous step (20 x 0 = 0) and write that answer at the bottom:

0 0

2 0 ⟌ 1 6

- 0

1 6

0

Step 8:

Subtract the result in the previous step from the number written above it. (16 - 0 = 16) and write the answer at the bottom.

0 0

2 0 ⟌ 1 6

- 0

1 6

- 0

1 6

You are done, because there are no more digits to move down from the dividend.

The answer is the top number and the remainder is the bottom number.

Therefore, the answer to 16 divided by 20 calculated using Long Division is:

0

16 Remainder

Explanation:

8 0

3 years ago

Leiff goes online to buy a new video game. He finds a site that currently has a promotion of 15% off on all orders over $50. Lei

rjkz [21]

Answer:

......................

Explanation:

4 0

3 years ago

Read 2 more answers

Once a project is underway, the project manager is responsible for the:_______a. people. b. cost. c. time. d. All of these

kati45 [8]

Answer:

I think the answer is D. All of the above

Explanation:

5 0

3 years ago

Procrastination is the process of​

Procrastination is the process of