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Over [174]
3 years ago
5

Harry, Hermione, and Ron formed an S corporation called Bumblebore. Harry and Hermione both contributed cash of $40,300 to get t

hings started. Ron was a bit short on cash but had a parcel of land valued at $98,000 (basis of $80,600) that he decided to contribute. The land was encumbered by a $57,700 mortgage. What tax bases will each of the three have in his or her stock of Bumblebore
Business
1 answer:
Kitty [74]3 years ago
5 0

Answer:

The correct answer is $40,300, $40,300 and $22,900

Explanation:

According to the scenario, the given data are as follows:

Harry contributed = $40,300

Hermione contributed = $40,300

Ron contributed land value = $98,000

Basis of land = $80,600

Mortgage on land = $57,700

So, we can calculate the tax basis for each by using following method:

Tax basis of Harry =  Harry contributed cash

Tax basis of Harry = $40,300

Tax basis of Hermione =  Hermione contributed cash

Tax basis of Hermione = $40,300

Tax basis of Ron = Basis of land - Mortgage on land

= $80,600 - $57,700

= $22,900

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Hope this helps

4 0
3 years ago
Read 2 more answers
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nirvana33 [79]

Answer: $197,600

Explanation: Don Co is making a sale to Cologne GmbH and on the date of the transaction there is an exchange rate called the spot rate. Don Co will record in its books the value of the transaction on the set date at the spot rate which is:

200,000 euros @ .988

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on the date of the settlement of the debt by Cologne GmbH, the spot rate is also considered which will be 200,[email protected] .995 = $199,000

Note that on the payment date, the exchange rate has gone up and now Don Co has a higher receivable value that what is in its book.

the difference of $1,400 ($199,000-$197,600) will now be noted in the books of Don Co as an exchange gain on the transaction.

8 0
3 years ago
Amanda and jack are working on their taxes and need to determine which form to file. they had wages, interest, and dividends. in
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I guess the correct answer is 1040.

Amanda and Jack are working on their taxes and need to determine which form to file. They had wages,  interest, and dividends. In addition, they bought a house this past year and are thinking of itemizing their  deductions.

They should use the form 1040.

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3 years ago
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________ is an on margin purchase. Answer A cash stock purchase Buying stock on credit. Buying goods on credit none of the above
Nataly_w [17]
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3 years ago
ACME Inc. manufactures components. One of its products, which is used in the construction of consumer products, is known as XsR.
Alex17521 [72]

Answer:

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Explanation:

Giving the following information:

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3 years ago
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