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Ivanshal [37]
3 years ago
13

An individual buys stock at $40 per share. Many years later, the individual dies when the market value is $60. The estate distri

butes the shares to a beneficiary when the stock is worth $70. What is the cost basis to the beneficiary
Business
1 answer:
marissa [1.9K]3 years ago
3 0

Answer:

$60

Explanation:

An individual buys stock at $40 per share. Many years later, the individual dies when the market value is $60. The estate distributes the shares to a beneficiary when the stock is worth $70. Therefore the cost basis to the beneficiary is

The cost basis by definition is usually equal to the fair market value of the property or asset at the time of the decedent's death or when the actual transfer of assets was made.

However for the purpose to be served to reduce the tax due on the inheritance, we have chosen to opt for the fair market value of the property or asset at the time of the decedent's death which is $60

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vagabundo [1.1K]

Answer:

Option (c) Marginal cost of fifth unit = $20

Explanation:

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

1)

Option (b) : Marginal cost is the change in the total cost of firm due to one unit change in output.

We can calculate the marginal cost by using following formula :

Marginal cost = Total cost ÷ Quantity

2)

Marginal cost of fifth unit = Total cost at unit 5 - total cost at unit 4

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4 years ago
Which savings account can a financial institution end?​
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3 years ago
Denver, Incorporated, has sales of $14.2 million, total assets of $11.3 million, and total debt of $4.9 million. Assume the prof
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<h3> What is profit margin? </h3>

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6 0
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ivann1987 [24]

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