401(k) is an employer-provided plan, IRA isn't.
Answer:
On the transfer of the building,
Appreciation of building = FMV - Adjusted Basis
= $50,000 - $10,000
= $40,000
WFI has taxable transaction and gain recognition of $40,000.
On the transfer of the land,
Appreciation of land = FMV - Adjusted Basis
= $150,000 - $90,000
= $60,000
WFI has taxable transaction and gain recognition of $60,000.
The franchisee cost that should be capitalised, will be the total amount incurred to acquire the franchisee , which is $100000, the legal fees of $4000 will also be added to the amount as it has been incurred in assciation with the acquisition thus the total cost which should be capitalised will be $100000+$4000 which comes to a total of $104000.
Answer:
Raw materials inventory
Explanation:
Since the raw material is purchased which increase the stock account so we debited it and for purchasing the raw material, the cash is given or it can takes on credit so we credited it
So, the journal entry would be
Raw material A/c Dr
To Cash A/c
(Being raw material purchased for cash)
Raw material A/c Dr
To Accounts payable A/c
(Being raw material purchased on credit)
Answer:
The workings of the answer are below;
Explanation:
Cost of purchase A $0.12
Current Market price B $492,937.50
Total Gain on sale C=B-A $492,937.38
Average annual gain over 56 year=$492,937.38/56=$8,802.45
