1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
il63 [147K]
3 years ago
10

Hosha exchanges all of her leaf stock for petal stock plus $5,000 cash. the exchange is pursuant to a tax-free reorganization. h

osha paid $25,000 for the leaf stock five years ago. the petal stock received by hosha has an $18,000 fair market value. if an amount is zero, enter "0".
a. what is hosha's realized and recognized gain/loss from the reorganization
Business
1 answer:
Grace [21]3 years ago
6 0
Her realized loss is 18K-5K=13K-25K=-12K 
her recognized loss is -5K 
her postponed loss is -12K-(5)=-7k
basis in petal stock= 18K-(7)=25K
You might be interested in
Internal control does not consist of policies and procedures that
kotegsom [21]

Answer:

d.guarantee the company will earn a profit

Explanation:

Internal controls are controls put in place by management to mitigate against identified risk. Risk basically  refers to what could go wring in a process. Controls are put in place to mitigate against the risk of error or fraud and do not necessarily prevent the company from making a loss.

Companies make profit or loss based on management's decisions such as where to invest, what time to invest, introduction of a new product, management of cost of sales and operating expenses etc

Internal controls basically consist of policies and procedures that ensure that the company's asset are not misused (fraud), no misrepresentation of revenue (fraud), employees and managers comply with laws and regulations,  business information is accurate ( no misrepresentation of records due to error) etc.

Hence Internal control does not consist of policies and procedures that guarantee the company will earn a profit.

The right option is d.

4 0
3 years ago
A job cost sheet of Sandoval Company is given below.
OLEGan [10]

Answer:

A. Direct materials-Materials requisition slips

Direct labor-Time tickets

Manufacturing overhead- Predetermined overhead rate

B. 125%

C. Total cost $7,760

Unit cost $3.104

Explanation:

1. Based on the information given the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job are :

Direct materials-Materials requisition slips

Direct labor-Time tickets

Manufacturing overhead- Predetermined overhead rate

2. Calculation to determine the predetermined manufacturing overhead rate

Predetermined overhead rate=$550/$440*100

Predetermined overhead rate=125%

Therefore the predetermined manufacturing overhead rate is 125%

3. Calculation to determine the total cost and the unit cost of the completed job

TOTAL COST

Direct Material $4, 700

($700 + $900 + $1,600 + $1,500)

Add Direct Labor $1,360

($440 + $380 + $540)

Add Manufacturing Overhead $1,700

($550 + $475 + $675)

Total Cost $7,760

UNIT COST

Unit cost= $7,760/ 2,500

Unit cost=$3.104

Therefore the total cost is $7,760 and the unit cost of the completed job is $3.104

8 0
2 years ago
You are the beneficiary of a life insurance policy. the insurance company informs you that you have two options for receiving th
lesantik [10]

So in this case, you would need to find the present value (PV) of the monthly payments. With the information given, you would have a PV= 195,413.08, which is less than the lump sum payment. In this case, you would take the 1 time payment.

Another way to look at this is to calculate the future value (FV) of both payouts. For the lump sum payment, you would assume the same interest rate (6%) and at the end of the same 20 years period, your investment would be worth 662,040.90 while the monthly payment option would be worth 646,857.25

7 0
2 years ago
A customer has requested that Lewelling Corporation fill a special order for 2,100 units of product S47 for $26 a unit. While th
RSB [31]

Answer:

Annual Financial advantage $ 550

Explanation:

<u>Computation of income/loss on special order</u>

Unit product costs

Normal product costs                                                                $ 19.20

Incremental variable costs  $ 1.30 per unit                               <u>$  1.30</u>

Total product costs                                                                     $ 20.50

Revenues per unit                                                                       <u>$ 26.00</u>

Profit per unit                                                                               $   5.50

Sales Units                                                                                    2,100 units

Total incremental profit on order                                               $ 11,550

Less; cost of moulds                                                                    <u>$ 11,000</u>

Incremental profit on S 47 order                                                 $    550                                                  

3 0
3 years ago
Read 2 more answers
Western Bank &amp; Trust purchased land and a building for the lump sum of $3 million dollars. To get the maximum tax deduction,
leonid [27]

Answer:

Explanation:

Because land never depreciates, Western Bank & Trust wanted to distribute a higher percentage of the purchase price to the building, rather than the land. By allocating 90% of the purchase price to the building, rather than a more accurate 70%, Western Bank & Trust increases the depreciation amount of the building each year. For tax purposes, the IRS requires that the Modified Accelerated Cost Recovery System (MACRS) be used as the depreciation method used by companies. Under this method, the IRS specifies the useful life for a specific asset. MACRS also ignores residual value of an asset at the end of its useful life. By stating that the building was worth 90% of the total purchase price, Western Bank is attempting to increase its tax deduction from the IRS, because only the building depreciates, not the land. This improper allocation of the total purchase amount violates GAAP principles, which require that accounting information be “relevant and have faithful representation.” The information must be “complete, neutral, and free from error” (Nobles, Mattison, & Matsumura, 2014). For Western Bank to provide complete, neutral, and free from error information, it should record the transaction honestly: 70% to the building, 30% to the land. This dishonest representation is harmful to the federal government in that it is allowing Western Bank to take more money than what it is owed. If these kinds of situations happen on a large scale, it could have a huge impact on the economy in general. Source: Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's Accounting, 10th Edition. Pearson Education, Inc. Student 2

3 0
2 years ago
Other questions:
  • Kellogg pays $2.00 in annual per share dividends to its common stockholders, and its recent stock price was $82.50. Assume that
    9·1 answer
  • What techniques do you use to focus your time and resources?
    6·1 answer
  • A stock's price fluctuations are approximately normally distributed with a mean of $104.50 and a standard deviation of $23.62. Y
    15·1 answer
  • You read an article in a news magazine that explains how the economy expanded for several years, and then went into a period of
    10·1 answer
  • Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its fact
    15·1 answer
  • Foutz Corporation has entered into a 8 year lease for a piece of equipment. The annual payment under the lease will be $3,600, w
    9·1 answer
  • In the month of March, Sandhill Salon services 630 clients at an average price of $120. During the month, fixed costs were $26,1
    10·1 answer
  • Hester operates a hand car wash service and charges customers $10 per car wash. Based on her knowledge of operations, the 100th
    9·1 answer
  • Kunkel Company makes two products and uses a conventional costing system. A single plantwide predetermined overhead rate is comp
    10·1 answer
  • Samantha is maximizing total utility while consuming food and clothing. Her marginal utility from food is 50, and her marginal u
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!