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Kay [80]
3 years ago
6

Ralph gives his daughter, angela, stock (basis of $8,000; fair market value of $6,000). no gift tax results. if angela subsequen

tly sells the stock for $10,000, what is her recognized gain or loss?
a. $10,000



b. $4,000



c. $0



d. $2,000



e. none of these choices are correct.
Business
2 answers:
IgorLugansk [536]3 years ago
7 0

Answer: D. $2000

Explanation:

Profit (gain) = selling price - cost price

Cost price = $8000

Selling price = $10000

Profit (gain) = $10000 - $8000

= $2000

Andreas93 [3]3 years ago
6 0

Answer:

D) $2,000

Explanation:

Angela's basis on the stocks will be the same as her father's. Since she sold the stocks, her basis will be $8,000, so her recognized gains will = selling price - basis = $10,000 - $8,000 = $2,000

The IRS allows the donee (Angela) to use the doners (Ralph) basis when selling an asset received as a gift in order to determine the realized gain/loss.

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On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of Tige Co. On that date, the book value of Ti
shusha [124]

Answer:

            Dr. Investments in Associates 250,000

            Cr.            Cash                                 500,000

          Dr. Cash                                   10,000

          Cr.            Investments in Associates 10,000

          Dr. Investments in Associates 50,000

          Cr.     Investment revenue                    50,000

Explanation:

The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.

An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.

- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.

- Jolley records the net income from Tige Co. as an increase to its Investment account.

4 0
3 years ago
What are the major differences between a distributionchannel for a business making tangible products anda firm producing hospita
max2010maxim [7]

Answer:

Following are the responses to the given question:

Explanation:

The distribution channel contains several interdependent organizations responsible for the production of a material to be used or use. Different types of goods were available - either qualitative and quantitative. Although two may lead to satisfied customers, the advertising and marketing of goods differ greatly.

There are tangible items that we can see, sound, and feel. For example, in my hand, I could hold a DVD. Immaterial materials are not visible. You can hold insurance papers in the hands, for example, but it doesn't purchase. People can buy family life insurance, and they can see, touch and smell.

The tangible product distribution includes stock or retailer. It includes primarily producers, distributors, suppliers, retailers, or customers.

Generosity or travel products are distributed through companies, marketing officials, distributors, and consumers.

4 0
2 years ago
Twelve years after Starfire's appearance, a similar coffee-shop chain, Reindeer Brews, entered the marketplace. Reindeer charges
GuDViN [60]

Answer:

Price competition in a monopolistically competitive market

Explanation:

The Monopolistic rivalry is an industry state with several firms that are closely linked to each other but offer distinct goods. Therefore, this sector has unlimited entry and exit

Here the company offers the same service but there are totally different in terms of design, service, quality, etc

Hence, the correct option is c

5 0
3 years ago
Extrinsic motivation is defined as ________. the pursuit of an activity for external reward the pursuit of an activity for its o
dexar [7]
Extrinsic motivation is defined as THE PURSUIT OF AN ACTIVITY FOR EXTERNAL REWARD. Extrinsic motivation refers to behaviours that are driven by external rewards such as money, fame, praise, etc. Such behaviours arise from outside the individuals. 
6 0
3 years ago
A good cover letter should only address your ability to perform __________ skills that the employer is seeking.
aalyn [17]

Answer: b. three or four

Explanation:

Cover letters are meant to introduce the applicant for the role in a manner that would inspire the recruiter to want to take their applicant further in the recruitment process.

As such, the applicant should include some selling points to encourage this. One of said selling points is the possession of the skills that the role in question requires. A good number to possess/include in the letter is three to four of said skills because anything less might be too little and anything more might inspire distrust.

7 0
3 years ago
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