Answer:
b. $38,000 cost basis in XYZ and a $2000 cost basis in PDQ
Explanation:
The aggregate cost basis does not change in a spin-off. The original cost basis in XYZ stock is $40,000. After the spin off, the customer gets 100 shares of PDQ, with a $20 per share value = $2,000. This is the PDQ cost basis, and it comes out of the XYZ cost basis.
$40,000 XYZ cost basis - $2,000 PDQ cost basis = $38,000 adjusted XYZ cost basis.
Personality as to in respect to the organizations refers to the nature of manufactured product they are selling to the market as well as the type of market they are competing with other players with. For example, the personality of Fairchild Semiconductor, Inc. is described by MOSFETS, ICs and the market they are targeting which is the automotive industry.
Answer:
Pension funds are contribution set aside by employers paid into a Pension Fund Administration (PFA) company for the purpose of retirement.
Explanation:
Pension funds are monies credited into the Individual Retirement Savings (IRS) Account by the employer, with a focus on providing financial comfort to the employees at retirement.
Despite that an amount of $2,400 is known for retained earnings, the amount of cash dividends that the company is able to pay cannot be determined.
<h3>What is retained earnings?</h3>
Retained earnings means the profit generated and set aside for the company's future purpose.
The amount of Retained earnings does not reflects the cash dividends paid to shareholders.
In conclusion, despite that an amount of $2,400 is known for retained earnings, the amount of cash dividends that the company is able to pay cannot be determined.
Read more about <em>retained earnings</em>
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