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poizon [28]
3 years ago
14

Navy Corporation has E&P of $240,000. It distributes land with a fair market value of $70,000 (adjusted basis of $25,000) to

its sole shareholder, Troy. The land is subject to a liability of $55,000 that Troy assumes. Troy has:
a. A taxable dividend of $15,000
b. A taxable dividend of $25,000
c. A taxable dividend of $45,000
d. A taxable dividend of $70,000
e. A basis in the machinery of $55,000
Business
1 answer:
anastassius [24]3 years ago
3 0

Answer:

a. A taxable dividend of $15,000

Explanation:

The relevant variables are the friar market value and the tax liability on the land.

The fair market value is the amount at which an asset or a company will be exchanged between a knowledgeable willing seller and a knowledgeable willing seller in an ordinary transaction in the market. Put simply, the fair market value of an asset gives an estimation of the price that a buyer would pay to the owner of the asset if the owner decides to sell the asset.

When a company distributes an asset as a dividend to the owner, any liability taken over on the assets will be deducted from the fair market value of the asset to arrive at the taxable dividend.

From the question, the $55,000 tax liability assumed by Troy will be deducted from the fair market value of the asset to obtained the taxable dividend as follows:

Taxable dividend = Fair market value - Tax liability on the land

                             = $70,000 - $55,000

                             = $15,000

Therefore, the taxable dividend is $15,000.

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Answer:<em> Option (A) is correct.</em>

Vitamin water, juice, coffee are other beverage options available to consumers are the one that can represent substitute products in the soft drink industry.

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4 0
3 years ago
Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations and enter your answers
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Answer and Explanation:

The computation of the effective annual rate in each of the following cases are

1.

Effective annual rate = [(1+annual percentage rate ÷ period)^period]- 1

= (1 +0 .09 ÷ 4)^4 - 1

= 9.31%

2.

Effective annual rate = [(1+annual percentage rate ÷ period)^period]- 1

= (1 + 0.16  ÷  12)^12-1

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3.

Effective annual rate = [(1+annual percentage rate ÷ period)^period]- 1

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4 0
3 years ago
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Answer:

C Protection against inflation

Explanation:

As we know that there are three functions of money i.e.

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2. Store of value

3. Medium of exchange

There is only 3 functions of money that are shown above

So the protection against inflation would not be considered for the same

And, these 3 would represent the functions of money and can be treated as the unit of account, store of value and the medium of exchange

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Barriers to entry are the primary factor that lead to monopoly. There are three sources of entry barriers: Responsibility for secret weapon.

Is a patent monopoly-granting?

Invention is rewarded by patents, not commercialization. In a similar vein, a patent does not constitute an economic monopoly. First, because having a patent does not result in the "single supplier" situation that is typical of most monopolies in real life.

To learn more about monopoly here

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umm screw tis it is odd amd very werid but this is stupid and very dumb and stupid why fo you even bote to be on brainlt this app is good but if ypu want t answer domething like this then talk y albert einstine oh wait hes dead lol ok so the answer is noting because it is hard andery not easy you van figurit out ursepf bye lol

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