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
Thepotemich [5.8K]
3 years ago
10

Winkler, a CPA, provided accounting services to a client, Thompson. On December 15 of the same year, Thompson gave Winkler 100 s

hares of Foster Corp. as compensation for services. The adjusted basis of the stock was $4,000, and its fair market value at the time of transfer was $5,000. The following year, Winkler sold the stock on February 15 for $7,500. What is the amount that Winkler should recognize as gain on the sale of stock?
Business
1 answer:
Lina20 [59]3 years ago
6 0

Answer:

the bonds will recognize a gain for 3,500

Explanation:

The adjusted basis of the stock will be the value in Winkler books.

So selling at 7,500 will recognize  gain for 3,500

You might be interested in
Which of these factors would NOT cause the supply curve for a particular good to shift?a. a change in the technology used to pro
attashe74 [19]

Answer:

The answer is: a change in the price at which a substitute good is sold

Explanation:

A shift in supply means a change in the quantity supplied at every price.

Let's assume we sell product A. If the price of a substitute product B increases, then the quantity demanded for product A will increase as the quantity demanded for product B decreases. That will cause an increase in the quantity supplied of product A, which may in turn rise the price of product A until again both products (A and B) match their prices.

Instead, a shift in the supply curve means that the quantity supplied of a product will change at every price level.

5 0
3 years ago
The depreciation method in which a plant asset's depreciation expense for a period is determined by applying a constant deprecia
musickatia [10]

Answer:

double declining balance method

Explanation:

Depreciation is an accounting tool to allocate the cost of a long-term asset over time. The reasoning behind is the matching principle. If we associate the entire purchase value at the very first moment, then, one accounting period is taking a hit for an asset that will be use over several accounting periods.

         

The double declining method applies a rate twice as the straight-line method.

This is applied at the carrying value of the assets (book value) every year for each year of useful life.

5 0
3 years ago
Opportunity cost is defined as A. the monetary expense associated with an activity. B. the highest valued alternative that must
Ratling [72]

Answer:

B. the highest valued alternative that must be given up to engage in an activity.

Explanation:

Opportunity Cost is the cost of next best alternative foregone while choosing an alternative.

Eg1: If I like Chapati more than rice & rice more than curd, the opportunity cost of consuming chapati is the next best option i.e rice.

Eg2 : Working as school teacher with salary 20000, next best option salary as coaching tutor i.e 10000 is the Opportunity Cost

A is inapt : Opportunity cost can be monetary or non monetary. Eg2 has monetary opportunity cost. But, Eg 1 has opportunity cost in terms of rice' (sacrifised) satisfaction.

C is inapt : Opportunity cost is only the cost of next best alternative & not all alternatives. Eg1 - Curd i.e 3rd best option after chapati, is not the opportunity cost after chapati.

4 0
3 years ago
Another bank is also offering favorable terms, so Rahul decides to take a loan of $18,000 from this bank. He signs the loan cont
Sphinxa [80]

Answer:

final loan amount = $18,455.86

so correct option is c. $18,455.86

Explanation:

given data

loan = $18000

rate =  10%

time = 3 months

to find out

total amount that Rahul owes the bank at the end of the loan

solution

we know that number of day in 3 months is

number of day = 3 × \frac{365}{12}

number of day = 91.25 days

loan rate = \frac{0.10}{365}

loan load = 0.00027397

now final loan amount will be

final loan amount = loan amount × (1+r)^{t}      

final loan amount = $18000  × (1+0.00027397)^{91.25}  

final loan amount = $18,455.86

so correct option is c. $18,455.86

7 0
3 years ago
What do economists mean when they use the word "land"?
Ede4ka [16]
In economics, the resource that encompasses the natural resources used in production
4 0
3 years ago
Read 2 more answers
Other questions:
  • E13-5. (adjusting entry for sales tax) (lo 1) during the month of june, rowling boutique had cash sales of $233,200 and credit s
    5·1 answer
  • Kalim developed a new food product that he was certain would be popular with consumers. He researched his target market and made
    11·2 answers
  • Behavioral economists attribute some consumer behavior to the endowment effect. Which of the following is an example of the endo
    10·1 answer
  • What is the repetition of patterns across a building design.
    10·1 answer
  • What is 6 cubed so like 6 with exponent 3
    9·2 answers
  • An easy way to make a document available to several people is by
    13·1 answer
  • The gosports company is a profit-maximizing firm with a monopoly in the production of school team pennants. the firm sells its p
    10·1 answer
  • An adjustable rate mortgage originator is adversely affected by _______ interest rates while the borrower is adversely affected
    9·1 answer
  • One effective way to manage credit card debt is to:
    7·2 answers
  • In a fairly large portfolio, the ...................... risk associated with one stock typically has no impact on the portfolio
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!