Answer:
Brett's outside tax basis in his LLC interest is $45000
Explanation:
A partner outside tax basis consist of basis of contributed property, partnership debt allocated to the partner without any debt relief. Non recourse debt that is more than basis of contributed property must be given to the partner that contributed to the property.
Brett's outside tax basis in his LLC interest = Cash contribution + basis of building - debt of building + Non recourse loan + non recourse mortgage + remaining mortgage on building
Cash contribution = $5000
Basis of building = $30000
Debt of building = $35000
Non recourse loan = Profit sharing ratio × Non recourse loan = 50% × $50000 = $25000
non recourse mortgage = $5000
remaining mortgage on building = 50% × $30000 = $15000
Brett's outside tax basis in his LLC interest = $5000 + $30000 - $35000 + $25000 + $5000 + $150000 = $45000
Numbers of suppliers in a purely competitive market dictate how easy it is to start a business or transform it in that sector.
Explanation:
Entry an d Exit in a business sector means the ease of starting or transforming a business that is involved in a particular market sector.
In a purely competitive market the business is dictated by the market standards set by the completion of the various companies vying for a market share between each other.
The harder the competition at the top level, the harder it is for a new business to come up, similar is the case for when one or two companies dominate the hegemony in which case it is hard to grab a market share for the new entrant in the market.
Answer:
$74.63 per share
Explanation:
The computation of the value of preferred stock is shown below:
As we know that
Value of the preferred stock = Annual dividend rate ÷ Returns on the stock
where,
Dividend on the preferred stock = Dividend rate × Par value
= 11% × $100
= $11
And, the return is 14.74%
So, the value of the preferred stock is
= $11 ÷ 14.74%
= $74.63 per share
Answer:
Convert the bonds into 20 common stocks.
Explanation:
the investor has 3 options:
- sell the bond at $1,000 x 1.005 = $1,005
- sell the bond to the corporation at $1,000 + $10 = $1,010
- convert the bond into 20 common stocks = 20 x $51 = $1,020
the option that yields the highest return is to convert the bonds into common stocks.
Answer:
Explanation:
Revenue recognition= [Transaction price-(Payment to advertisement-fair value)
Transaction price = $43,000
Payment to advertisement = $9,000
Fair value = $5,000
Thus, the revenue should Lewis co. record for the merchandise sold to Adco is:
= $43,000 - ($9,000 - $5,000)
= $39,000
