Answer: The donor may incur a gift tax liability. Also, the cost basis will be $50 per share to the recipient of the gift.
Explanation:
From the question, we are informed that a customer owns 200 shares of ABC, that were bought 2 years ago at $50 per share and that the current market value of ABC stock is $60 per share.
If the customer gifts the stock to his son, the result is the donor may incur a gift tax liability. Also, the cost basis will be $50 per share to the recipient of the gift.
Answer:
Raise taxes
Explanation:
This will help reduce the amount of money in circulation because during recession money loses its value due to large amount of money in circulation
Answer:
75%
<h3>
Explanation:</h3>
- Lenders use the lesser of the sales price or appraised value to calculate the loan-to-value ratio (LTV).
- This results in LTV of 75% ($300,000/$400,000).
<h3>How do you calculate the loan-to-value ratio?</h3>
- To figure out your LTV ratio, divide your current loan balance (you can find this number on your monthly statement or online account) by your home's appraised value.
- Multiply by 100 to convert this number to a percentage. Caroline's loan-to-value ratio is 35%.
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Answer:
Value of one right = $2.63
Explanation:
<em>A right issue is the issue of additional new shares to existing shareholders in proportion to their existing shareholdings at a price less than the current market price.</em>
<em>The value of rights is the difference between the theoretical ex-right price and the right price . </em>
Value of rights= Theoretical ex-right price - Right price
<em>The theoretical ex-right price is the price at which a share is expected to settle after the right issue assuming all the rights are taken</em>
Theoretical ex-rights price = Total value of shares after right issue/Number of shares after right issues
<em />
1 unit of old share at $25.25 = $25.25
I unit of right share at $20.00= <u>$20.00</u>
Total value of 2 shares <u>$ 45.25</u>
Theoretical ex-rights price = 45.25/2 =$22.63
Theoretical ex-rights price=$22.63
Value of rights= Theoretical ex-right price - Right price
= 22.63 - 20.00
Value of one right = $2.63