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MissTica
3 years ago
15

Katrina, age 58, exchanged a limited partnership interest in a shoe manufacturing company in which her outside basis was $100,00

0 for a limited partnership interest in a boot manufacturing company and $10,000 cash. The fair market value of the boot manufacturing company is $260,000. Calculate her recognized gain
Business
1 answer:
serious [3.7K]3 years ago
7 0

Answer:

$150000

Explanation:

Solution

The first step to take is to calculate the recognized gain.

Given that:

the outside basis = $100,000

Cash =$10,000

The fair market value of the boot manufacturing company is = $260,000

Now,

The Recognized gain is stated as follows:

The  Fair Market Value - (Outside Basis + Cash)

= $260000 - ($100000 + $10000)

= $260000 - $110000

= $150000

Therefore her calculated gain is $150000

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New Age Electronics expects to earn $100,000 this year. Earnings will grow 3% indefinitely if the firm makes no new investments.
vampirchik [111]

Answer:

5.7 1

Explanation:

Given:

  • Earning expect: $100,000
  • Grow rate: 3% = 0.03 (g)
  • Discount rate: 10% = 0.1 (r)
  • Number of shares: 250,000

We need to find the EPS because all of the earnings are paid out as dividends

= $100,000/250,000 shares

= $0.4

=> Current price:

P = D1 / (r-g)

<=> P = 0.4 (0.1 - 0.03) = 5.7 1

So the price per share of stock is  5.7 1

Hope it will find you well  

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3 years ago
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Answer: 1. 5 buses 2. 15%

Explanation:

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3 years ago
Leno Company sells goods to the Fallon Company for​ $10,000. It offers credit terms of​ 2/10, n/30. If Fallon Company pays the i
Zinaida [17]

Answer:

Leno Company will record a debit to Cash in the amount​ of: D. ​$9,800

Explanation:

The terms of 2/10, n/30 means 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

Fallon Company pays the invoice within the discount​ period - early enough to receive a 2% discount. The discount amount is 2% x $10,000 = $200.

On the other hand, Leno Company has to offer a 2% discount to Fallon Company. Cash amount Leno Company receives = $10,000 - 2% x $10,000 = $9,800

Leno Company will record a debit to Cash in the amount​ of $9,800

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Coffee and tea are substitutes for consumers. An increase in the price of coffee coupled with an increase in the number of tea g
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Answer:

Explanation:

As the coffee prices are relative higher than what it actually ends up paying, person will pay above their face value to obtain. Same will apply  the same idea for that concept.

As tea is also icnreases we will pushed there.

In the long term we should review how this is done as usually end up here and allone

Therefore the compete sentences will be:

An increase in the price of coffee coupled with an increase in the number of tea growers the lower adverzare will occur within a year Also, we could check for it at 12.600

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Complete the following:
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