Answer:
What is Swan’s taxable gain on the distribution of the cottage?
Fair market value of property = 200000
Less: adjusted basis of property= 115000(150000-35000)
Taxable gain on distribution = 85000
What is Swan's current E&P after the distribution on 12/31/13?
Swans current E&P = 300000
Add: taxable gain on distribution = 85000
Less: distribution made = 165000(200000-35000)
After distribution E&P = 220000
What is the taxable dividend to the shareholder (if any)?
Taxable dividend to shareholders = 200000-35000 = 165000
What is the shareholder's basis in the cottage?
Shareholders basis is FMV of property i.e. 200000
Answer:
The answer is "
It is exceptionally high and the product of an extraordinary event".
Explanation:
The Market value or the price is bouging to its result of many an unusual occurrence of certain request or supply shock or the price values the commodity is unexpectedly inaccessible. Its price increases to is the highly inefficient and sometimes unethical amount by its supplier, that's why its price will be increased.
Answer:
"Assuming the market of soda has a regular downward sloping" demand curve and upward sloping supply curve, the tax will <u>be added to</u> the price paid by buyers and <u>not the price received by</u> the price received by sellers.
Explanation:
When demand is takes a downward slope it simply means the good is not sort after in the open market.When Supply curve takes an upward curve it means their is a great availability of production resources.
Tax incidence goes alongside the above theory,in cases where demand is low ,the tax will will be imposed on the buyer .But in the case where demand is high the tax is usually imposed on the producer.
Answer:
The correct answer is b) The first tranche has the highest prepayment risk.
Explanation:
A collateralized mortgage obligation (CMO) is a type of security backed by mortgage. It is comprised of a pool of mortgages that are bundled together and sold as an investment. Prepayment risk is the risk of loss of interest income due to early repayment of the principal by the borrower.
In the given situation, there are three tranches. The first tranche has the highest prepayment risk because it is receiving principal at the earliest. Hence, there is more of a chance of this principal being returned early and the CMO holder losing out on potential interest. Therefore, the prepayment risk of the first tranche is the highest among all three tranches.