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amid [387]
3 years ago
10

When a taxpayer transfers property subject to a mortgage to a controlled corporation in an exchange qualifying under § 351, the

transferor shareholder’s basis in stock received in the transferee corporation is increased by the amount of the mortgage on the property.a.trueb.false
Business
1 answer:
iris [78.8K]3 years ago
5 0

Answer:

a. True

Explanation:

Under the U.S corporate tax laws, when a taxpayer transfers property subject to a mortgage to a controlled corporation in an exchange qualifying under section, § 351, the transferor shareholder’s basis in stock received in the transferee corporation is increased by the amount of the mortgage on the property.

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Assume that you purchased a $1,000 perpetual bond (coupon payment is $50) and the interest rate on that bond declined from 5 per
Svetlanka [38]

Answer:

D) all of the above

Explanation:

First find the present value for each alternative  using PV of perpetual cashflow formula;

PV = CF / rate

CF = 50

If rate= 5%;

PV = 50/0.05 = $1,000

If rate = 2%;

PV = 50/0.02 = $2,500

With these two calculations, we see that;

-the bond price increased by $1,500

-you could sell this bond at a capital gain, meaning you can sell it a higher price that what you bought it for.

-at an interest rate of 2%, the speculative demand for money would increase

Hence , all these choices are correct!

5 0
3 years ago
Bothell Construction, LLC, Ballard Remodel, Inc., and Tim's House Painting Company agreed that on three upcoming projects, Balla
Arlecino [84]

Answer:

violates ethical, but not legal, standards.

Explanation:

Sherman act was created to prohibit restrains on trade of any collusion by different parties to form a monopoly or control price.

The act does not however prohibit all restraints of trade, bit rather those that are very unreasonable and harmful to competition.

In the given scenario the three companies only agreed to bid lowest for the 3 project under consideration.

Their action does not give them unfair advantage over other firms and may even lead to a loss on their part.

They do not have a strategy that will guarantee an edge over other firms.

So this is an ethical violation but not a legal one.

8 0
3 years ago
Tim wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacatio
Luda [366]

Answer:

Tim can easily determine that the price of the computer is more than the price of the vacation = Unit of Account

Tim has $1,537 in his checking account = Store of value

Tim writes a check for $1,299 = Medium of Exchange

4 0
3 years ago
PLZ HELP. Classify the customer buying motive as rational or emotional.
Lina20 [59]

Answer:

rational

Explanation:

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

Buying motive refers to the considerations, urge, emotions or influences that creates the impulse in consumers (customers) to buy a particular good, so as to satisfy their desire or needs.

This ultimately implies that, behind every purchase made by a consumer, there's a consideration, urge or feeling to satisfy that desire or needs l, this is generally referred to as buying motive.

In Economics, buying motives are classified into five (5) main categories and these include;

I. Acquired and Inherent buying motives.

II. Conscious and Dormant buying motives.

III. Physical, Psychological and Sociological buying motives.

IV. Primary and Selective buying motives.

V. Rational and Emotional buying motives.

A rational buying motive is typically based on the consumer's logical and economical consideration of a product in terms of price, durability, need, quality, etc. Thus, it involves a careful consideration of a product rather than feelings as in emotional buying motive.

In this scenario, Mark buys a particular brand of frozen food because it is economical for him. Thus, the buying motive would be classified as rational.

6 0
3 years ago
Why are major league baseball players on average paid substantially more than college​ professors? Explain. Major league basebal
sukhopar [10]

Answer:

B. the marginal revenue product of major league baseball players is high relative to college professors.

Explanation:

For becoming a college professor involves more amount of efforts and dedication than the baseball players.

Also under the baseball matches there are numerous sponsors as looking for advertisement and promotions, as huge public is interested in such matches.

Therefore as large funds are invested and that the players earn accordingly more, as tickets are also charged.

The marginal revenue from baseball is therefore more, as the cost is less as compare to the cost in becoming professor.

7 0
3 years ago
Read 2 more answers
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