**Answer:**

**Loss = $200,000**

**Stock basis = $700,000**

**Explanation:**

The computation of loss and stock basis is shown below:-

Since there is exchange in deferred tax so no loss will be recognized

**Stock basis = Carryover Basis - Cash received**

= $1,200,000 - $500,000

= **$700,000**

Therefore, if Celeste sell stocks $700,000, she will be in loss of $200,000

**= $700,000 - $500,000**

**= $200,000**

**Answer:**

Total E&P = $ 160000

Total voting Right Sold = 50/ (100+100) = 25%

Reduction of E& P due to exchange = Total E&P*Total voting Right Sold

Reduction of E& P due to exchange = 160000*25%

Reduction of E& P due to exchange = 40000

Reduction of E& P Lower of Total E&P*Total voting Right Sold or Amount realised

Reduction of E& P Lower of 40000 or (50*1000)

Reduction of E& P Lower of 40000 or 50000

Answer

A reduction of $40,000 in E&P because of the exchange.

**Answer:**

Instructions are listed below

**Explanation:**

Giving the following information:

To find the final value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

A) FV of $400 every six months for five years at a simple rate of 12 percent, compounded semiannually.

Effective rate= 0.12/2= 0.06

FV= {400[(1.06^10)-1]}/0.06= $5,272.32

B) FV of $200 every three months for five years at a simple rate of 12 percent, compounded quarterly.

A= $200

i= 0.12/4= 0.03

n= 20

FV= {200*[(1.03^20)-1]}/0.03= $5,374.08

C) The difference is that it compounds the interest gain rapidly.

I believe the answer is Japan

A balance of payment will be recorded as credit if the recorder is in the position who receive the revenue from the transaction.

This means that Japan will record the balance of payment as credit while putting cash or receivables in Debit.