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mr_godi [17]
3 years ago
8

Grady exchanges qualified property, basis of $12,000 and fair market value of $18,000, for 60% of the stock of Eadie Corporation

. The other 40% of the stock is owned by Pedro, who acquired it five years ago.Calculate Grady ‘s current income, gain, or loss and the basis he takes in his shares of Eadie stock as a result of this transaction.
Business
1 answer:
jeyben [28]3 years ago
8 0

Answer:

Grady's gain = $6,000

Grady's stock basis = $18,000

Explanation:

This transaction does not qualify as a Section 351 (a) transfer of property in exchanged for a corporation's stock, therefore Grady must recognize a gain.

Gain = fair market value - basis = $18,000 - $12,000 = $6,000

Grady's basis on Eadie Corp. stock is $18,000

In order to qualify as a Section 351 (a) transfer and not recognize any gain or loss, the transfer must result in an immediate control over the corporation and that doesn't happen here. Control over a corporation as defined by Section 368(c) represents at least 80% of all voting power and at least 80% of all common stock. In this case the transfer resulted in a 60% ownership, it was 20% short.

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Which NIMS Management Characteristic refers to personnel requested through appropriate authorities and established resource mana
sergey [27]

Answer:

A. Dispatch/ Deployment

Explanation:

NIMS refers to National Incident Management System that is basically created by the Federal Government in order to keep a regulated and national approach that is comprehensive for the incident management.

The Dispatch and Deployment characteristic provide that no resources shall be dispatched before the prior approval of management, and that the resources shall be deployed only when the management asks for such deployment.

This basically establishes the importance of authorities and personnel that is higher management.

7 0
3 years ago
1. Discuss the consumer decision making process for a product such as canned/packaged tuna and the response hierarchy model this
steposvetlana [31]

Answer

Because of the shift away from media promoting, the dynamic interaction has changed incredibly. When media promoting was weighty with COSI and StarKist, customers had gotten used to seeing the advertisements and their separate symbols. Buyers were extremely faithful to a particular brand and the reliability outgrew the recognizable symbols "Charlie the Fish" and the mermaid for COSI. Since the center has moved to principally print advertisements, advancements coming up, and coupons, there is something else entirely to keep the customer dynamic cycle occupied. An item, for example, canned fish isn't a need, and in this way can without much of a stretch be supplanted by substitutes. There is more seriousness since a buyer could simply pick a brand since it is the least expensive at a specific store or in light of the fact that they discovered a coupon in a notice. Brand devotion is done being squeezed into shoppers' psyches through business spots with an agreeable mermaid. Presently, organizations are battling to offer more advancements or more limits to build deals, yet the outcome is that for certain buyers each excursion to the store could end with an alternate brand on fish being bought. Purchasers are presently being reached at home through paper advertisements, intelligent item sites, and different advancements. Clients might have settled on their choice before going on an outing to the store. Clients would have followed the Progressive system of Impacts Model before the promoting endeavors moved from media publicizing. Shoppers knew about the brands since they were faithful and fabricated inclinations after some time that prompted buying one brand over the other. Presently, the last buy isn't driven by dedication, however rather each buy has the customer taking a gander at a few components. The activities of retail deals, print advertisements, or different advancements influence their purchasing conduct.

8 0
3 years ago
Jan Holliday Dance Studios is a chain of 45 wholly owned dance studios that offer private lessons in ballroom dancing. The studi
Naya [18.7K]

Answer:

If the Studio is the cost object, then all the costs that can be attributed to the studio itself will be direct and that includes all the costs except the <em>Planning and development materials sent from the home office, </em>because that comes from the home office not the studio in question.

As per the question, all the costs are also variable because there are different payment plans and the offers by the studio as well as materials needed are dependent on the number of students they have. Advertisements are a set price however and do not depend on the number of students and so are fixed .

If the Lessons were the cost objects, everything that cannot be linked directly to the lessons is an indirect cost. This includes all the costs excerpt the dancing instructors' salary as this is linked directly to the number of lessons they offer.

All costs will also be fixed because they are independent of the lessons offered and so are set amounts. The dancing instructors' salary is also fixed as the rates do not change in relation to lesson prices.

5 0
3 years ago
A buyer made an earnest money offer to purchase property, and the broker placed the funds in his trust account. After the seller
Alex17521 [72]

Answer: Interpleader

Explanation:

The broker just engaged in an Interpleader action which is an action that allows a person who does not own a certain property to get the claimants to the property to go to court for it. The Court will then decide who should get the property after proceedings.

The Broker does not own the deposit but seeing as he did not want to get into trouble with either the Seller or the Buyer, he put the deposit with the courts so that they would decide who owns the deposit.

7 0
2 years ago
Ue or false: increasing the number of stocks in a portfolio reduces market risk.
Triss [41]
False. It does not reduce market risk.
7 0
3 years ago
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