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aleksklad [387]
3 years ago
12

Clampett, Inc. has been an S corporation since its inception. On July 15, 2019, Clampett, Inc. distributed $40,500 to J. D. His

basis in his Clampett, Inc. stock on January 1, 2019, was $35,000. For 2019, J. D. was allocated $12,000 of ordinary income from Clampett, Inc. and no separately stated items. How much capital gain does J. D. recognize related to Clampett, Inc. in 2019?a. $40,500.b. $12,000.c. None of the choices are correct.d. $52,500.e. $24,000.
Business
1 answer:
AlexFokin [52]3 years ago
4 0

Answer:

c. None of the choices are correct

Explanation:

Calculation of capital gain  

Basis of stock                                       $35,000

Allocated ordinary income               $12,000

Total basis                                       $47,000

Amount distributed                       $40,500

Therefore, Since basis is more than distribution capital gain, The capital gain is $0.

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In the context of experimental research, the logic of random assignment is
zimovet [89]
The answer to this question is: <span>groups have equal and balanced composition.
</span>Which means that each groups in experimental research are not displaying the too mcuh difference in term of average characteristics.
This will make sure that the data that acquired during the research are stable and can be trusted (not affected by a special variance)
3 0
3 years ago
David saves money from his teaching job to buy a new boat when he retires in 20 years. The boat will cost $30,000. He has $12,00
LuckyWell [14K]

Answer:

True

Explanation:

The main advantage of a compound interest account is that the interest that you earn also earns interest, so the total amount of earned interest increases.

For example, a $10,000 account earning simple interest at a 4% rate will earn $4,000 in ten years. While the same amount in a compound interest account will earn $4,802.

7 0
3 years ago
Brad's Diner is expanding and expects operating cash flows of $32,000 a year for 4 years as a result. This expansion requires $3
lawyer [7]

Answer: $57,101.73

Explanation:

First find the present value of the cash inflows. The $32,000 is a constant payment so is an annuity. The net working capital will be realized at the end of the project as well.

Present value of cash inflows = (32,000 * Present value interest factor of an annuity, 4 years, 12%) + 3,000/ (1 + 12%)⁴

= (32,000 * 3.0373) + 1,906.55

= ‭$99,101.73

NPV = Present value of inflows - Outflows

= ‭99,100.15‬ - (39,000 + 3,000)

= $57,101.73

5 0
3 years ago
Machine A has an initial cost of $6,000 with total annual maintenance costs of $750. Machine B has an initial cost of $8,500 wit
ryzh [129]

When the initial cost of Machine A is $6,000 and that of Machine B is $8,500, then both the machines will have the same current value at the end of 10 years.

<h3>What is the meaning of current value?</h3>

The present market value of an asset that prevails in the market is known as the current value of an asset. Using the given conditions, the current value will be the same as computed under,

\rm Cost\ of\ Machine\ A\ + Maintenance\ Cost(Interest\ Rate)= Cost\ of\ Machine\ B\ +Maintenance\ Cost(Interest\ Rate)

Putting the given value and solving further we get,

\rm Current\ Value\ x\ 7.25\ x\ 10\% = \dfrac{2500}{345}\\\\\rm Current Value= 10

Hence, the significance of current value is aforementioned.

Learn more about current value here:

brainly.com/question/8286272

#SPJ1

5 0
1 year ago
Current assets and current liabilities for Brayden Company are as follows: 20Y9 20Y8 Current assets $498,600 $532,400 Current li
GuDViN [60]

Answer:

Working Capital -2019  =$229300

Working Capital -2018 = $230900

Explanation:

Working capital is the operating capital of the business that is used in the day to day running or the business and is a metric for the liquidity of the business. It is necessary for the operations of the business and is calculated as the difference between the current assets and the current liabilities.

Working Capital = Current Assets - Current Liabilities

Working Capital -2019 = 498600 - 269300  =$229300

Working Capital -2018 = 532400 - 301500  = $230900

4 0
2 years ago
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