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Lina20 [59]
3 years ago
7

Lake City Corporation owns all the stock in Columbia Corporation. Pursuant to a plan of complete​ liquidation, Columbia distribu

tes land having a​ $500,000 FMV and a​ $200,000 basis to Lake City.​ Columbia's gain with respect to the distribution will be
Business
1 answer:
sladkih [1.3K]3 years ago
3 0

Answer:

Since on distribution on complete liquidation to shareholder will taxable on both hand (company and shareholdeR) .shareholder will pay tax on FMVless adjusted basis and corporate will pay tax on gain (FMV-adjusted basis of asset ).

since taxability in both hands will result in double taxation ,any gain/loss will be taxed in shareholders hand and corporate tax liability will be minimal'

so correct option is "D" -no gain recognised.

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What is a dividend? Money a company regularly (typically quarterly) charges shareholders to help profits The new company entity
Mila [183]
The answer to the given question above would be the fourth or last option. A dividend is defined as the money that a company regularly <span>(typically quarterly) pays shareholders from its profits. Hope this is the answer that you are looking for. Have a great day ahead!</span>
7 0
3 years ago
Read 2 more answers
Firms A and B plan to collude in an economy for their similar​ products, which includes the grim strategy for punishment. They p
denis-greek [22]

Answer: C. Firm A reduces the price to​ $7 causing Firm B to reduce its price to​ $4.50.

Explanation:

Since firm A is impatient to earn more profits and Firm B wishes to last in the business for the​ long-run, then Firm A will reduce the price to​ $7 causing Firm B to reduce its price to​ $4.50.

Since Firm A reduces the price to​ $7, this will lead to an increase in the quantity demanded of the product and therefore the firm can earn more profit. On the other hand, firm B will reduce its price to a point where the price meets the marginal cost which is $4.50.

3 0
2 years ago
When an economy is operating efficiently, the production of one more unit of a good will result in some loss of production of an
s344n2d4d5 [400]

Answer:

a) resources are limited and efficiency implies that all resources are already in use

Explanation:

If production is efficient, it means that the economy is producing on the production possibility frontier and all resources are in use.

To produce one unit of a good, the economy has to forgo producing one unit of the other good.

I hope my answer helps you.

3 0
3 years ago
A chain of sport shops catering to beginning skiers, headquartered in Aspen, Colorado, plans to conduct a study of how much a be
qwelly [4]

Answer:

Kindly check explanation

Explanation:

Given the data:

140 82 265 168 90 114 172 230 142 86 125 235 212 171 149 156 162 118 139 149 132 105 162 126 216 195 127 161 135 172 220 229 129 87 128 126

175 127 149 126 121 118 172 126

70 - 104

105 - 139

140 - 174

175 - 209

210 - 244

245 - 279

B.) Using a class interval of 30; with lower limit of 80;

Class interval ___frequency __R/frequency

80 - 110 ________ 5 ________ 11.4

111 - 141 ________ 17 ________38.6

142 - 172 _______13 ________29.5

173 - 203 ______ 2 _________0.05

204 - 234 ______5 _________11.4

235 - 265 ______2 _________0.05

From the frequency table above, we can observe that the initial amount a beginner expends on supplies is largely between $111 to $172 ; with 38.6% of the collected samples spending between $111 and $141 and 29.5% spending between $142 and $172.

6 0
3 years ago
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The
nirvana33 [79]

Answer:

See below

Explanation:

We will first determine the overhead rate

= cost of manufacturing overhead / cost driver

We will distribute the cost driver which is machine hours

$159,000/32,000 = $4.97

$4.97 fixed + $3 = $8 predetermined overhead rate

We will now apply this to job machine hours

Job machine hours 30

Overhead: machine hours x

Predetermined rate = 30 × 8 = $240

Total cost $1,320 + $660 direct material + $240 overhead = $2,220

Then,

Unit cost = Total cost/ unit

= $2,220/10

= $222

Selling price

= cost + 40% cost

= $222 + $88.8

= $283.50

7 0
2 years ago
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