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Eduardwww [97]
3 years ago
7

El Toro Corporation declared a common stock distribution to all shareholders of record on June 30, 20X3. Shareholders will recei

ve one share of El Toro stock for each two shares of stock they already own. Raoul owns 310 shares of El Toro stock, with a tax basis of $60 per share. The fair market value of the El Toro stock was $100 per share on June 30, 20X3. What are the tax consequences of the stock distribution to Raoul
Business
1 answer:
Natasha2012 [34]3 years ago
7 0

Answer:

This distribution is not taxable since Raoul is not earning any money at all (dividend income = $0), but the tax basis on the stocks that he holds will vary.

Before the distribution, Raoul had 310 shares, each share with a $60 tax basis. After the distribution, Raoul will have 465 shares, each share with a $40 tax basis.

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Morgan Co. signs a $50,000 noninterest-bearing 5-year note payable for goods purchased from Xelco Industries. The appropriate ra
riadik2000 [5.3K]

Answer:

$31,046

Explanation:

You take the $50,000 and divide it by 1.10^5 = $31,046

5 0
3 years ago
The Fortunato Corp.'s inventory at Dec 31, 2018, was $325,000 based on a physical count priced at cost, and before any necessary
AleksandrR [38]

Answer:

$405,000

Explanation:

The computation of the ending inventory reported is shown below:

Inventory on December 31,2018 $325,000

Add: Goods purchased from a vendor i.e shipping point $30,000

Add: Goods sold FOB destination to customer $38,000

Add: consignment by Brecht Inc $12,000

Ending inventory reported $405,000

In the above cases, the added items indicates the ownership is transferred to buyer , received by buyer and remains with the buyer

4 0
3 years ago
End item A requires three component parts: B, C, and D. The BOM indicates that for each completed A, 1 unit of B, 2 units of C,
I am Lyosha [343]

Answer:

30 in total

Explanation:

In order to calculate how many items A we can produce we need to check how many units required we have, in this case, we have:

40 B's

50 C's

15  D's

We require 2 units of C, 1 Unit of B, and 1 unit of C.

As you can see in our inventory we only have 15 units of D's, meaning that that is our maximum number of items A produced this week, since we already have 15 A items, we can deliver 30 A products this week.

3 0
3 years ago
Emerson Enterprises is constructing a building. Construction began in 2018 and the building was completed on December​ 31, 2018.
kirill115 [55]

Answer:

Explanation:

$1,050,000

5 0
3 years ago
Legislation defining the mission of the Federal Reserve​ states: "The Board of Governors of the Federal Reserve System and the F
jeka57 [31]

Answer:

dual mandate.

Explanation:

dual mandate -

It is the practice in which the elected officials serves in more than one elected or public position .

In Britain , this term is also referred to as double jobbing .

In some cases , the dual mandate is prohibited by the law , as in the case of the federal states , because the federal office holders are not allowed to hold state office .

Hence  from the question information , the correct option is dual mandate .

5 0
3 years ago
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