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Vlad1618 [11]
3 years ago
14

Roberta transfers property with a tax basis of $400 and a fair market value of $500 to a corporation in exchange for stock with

a fair market value of $350 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $150 on the property transferred. What is the amount realized by Roberta in the exchange?
Business
1 answer:
xenn [34]3 years ago
8 0

Answer:

$500

Explanation:

Data given in the question

Tax basis = $400

Fair market value = $500

Under section 351, the fair market value = $350

Liability on the property transferred = $150

So, by considering the above information the amount realized in the exchange is

= Fair market value under section 351 + liability on the property transferred

= $350 + $150

= $500

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Wonder Company sells a plant asset that originally cost $720,000 for $240,000 on December 31. The accumulated depreciation accou
Masja [62]

Answer:

The company should recognize d. $120,000 loss on disposal

Explanation:

Companies frequently sell plant assets to dispose them. To recognize gain or loss on disposal:

First, the company calculates the carrying amount of the asset by using the original cost of the asset, minus all accumulated depreciation and any accumulated impairment charges.

Then, subtract this carrying amount from the sale price of the asset. If the remainder is positive, it is a gain and if the remainder is negative, it is a loss .

In Wonder Company:

The carrying amount of the asset = $720,000 - $360,000 = $360,000

Sales price -  carrying amount of the asset = $240,000 - $360,000 = -$120,000 <0

The company should recognize $120,000 loss on disposal

5 0
3 years ago
The demand for air travel between two cities doubles. the elasticity of the supply of air travel between these cities will​ ____
Bumek [7]

What are the options?

5 0
3 years ago
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Nanometrics, Inc. has a beta of 3.15. If the market return is expected to be 10 percent and the risk-free rate is 3.5 percent, w
OLga [1]

Answer:

23.975%

Explanation:

Calculation for Nanometrics required return

Using this formula

Required return = Risk free rate + (Beta*(Market rate - Risk free rate))

Where,

Risk free rate =3.5%

Beta=3.15%

Market rate =10%

Let plug in the formula

Required return = 3.5% +(3.15*(10%-3.5%)

Required return = 3.5% +(3.15*6.5%)

Required return = 3.5% + 20.475%

Required return = 23.975%

Therefore Nanometrics required return will be 23.975%

3 0
3 years ago
XYZ Corp. has issued $30 million of debentures. Each bond issued has a warrant attached enabling the holder to buy three shares
Anna71 [15]

Answer: D) $2.7 million

Explanation:

Debentures are sold per $1,000 which means that out of $30 million there are;

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Each bond is entitled to 3 shares;

= 30,000 * 3

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Price of $30

= 90,000 * 30

= $2,700,000

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3 years ago
Little Corp., a toy manufacturing company, allocates one task to an employee working from 8:00 a.m. to 12:30 p.m. and allocates
Leno4ka [110]

Answer:

Job Sharing.

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