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fenix001 [56]
3 years ago
6

1. Charlie Corporation transfers $700,000 stock and land with a value of $200,000 (basis of $95,000) to Sebago for most of its a

ssets. The only asset not acquired in the Type A reorganization, a crane, is distributed to Sebagos shareholder, Betty. The crane is valued at $285,000 (basis of $300,000), and is subject to a $165,000 liability, which Betty assumes. Charlie stock and the land also are distributed to Betty in exchange for her stock in Sebago. Bettys basis in her stock is $630,000. What is the gain or loss recognized by Charlie, Sebago, and Betty on this restructuring
Business
1 answer:
anygoal [31]3 years ago
6 0

Answer/Explanation:

1. Charlie: Asset revalued

Asset            Old Value        New Value       Gain        Loss

Land               200,000          95,000                ­          105,000

Crane             285,000         300,000          15,000       ­

Total loss recognized by Charlie = $105,000 ­ $15,000 = $90,000

2. Sebago: Asset revalued

Asset          Old Value           New Value         Gain            Loss

Stock          700,000               630,000               ­               70,000

Land           200,000               95,000             105,000          ­

Total gain recognized by Sebago = $105,000 ­ $70,000 = $35,000

3. Betty: Asset revalued

Asset           Old Value         New Value           Gain                Loss

Crane           285,000           300,000                 ­                   15,000

Stock            700,000           630,000              70,000               ­

Total gain recognized by Betty = $70,000 ­ $15,000 = $55,000

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natulia [17]

Answer:

-2

Explanation:

To find the cross price elasticity between to goods, we use this formula:

Cross Price Elasticity of Demand = % change in quantity demanded of good 1 / % change in the price of good 2

Now, we plug the amounts into the formula

Cross Price Elasticity of Demand = -50% / 25%

                                                      = -2

5 0
3 years ago
If money is paid when a change of ownership in a life insurance policy takes place, this is generally known as a ____________.a.
valina [46]

Answer:

The correct answer is A

Explanation:

Transfer of value is the term which is defined or described as the rule that stipulate when any interest in the policy or the life insurance policy is transferred for something of value such as property and money. A portion of the death advantage is subject to be taxed on the ordinary income.

So, when the money or amount of money is paid if the change of ownership in the life insurance policy happen or occur, then it is usually known as the transfer of the value.

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3 years ago
In "Do Not Go Gentle into That Good Night”, the speaker emphasizes that older men should fight fiercely against death. The setti
Advocard [28]

The theme of the poem is about the Bravery of the military unit .hence choice 1 is correct.

<h3>What is the summary of  The Charge of the Light Brigade?</h3>

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Tennyson honors a military unit's bravery for charging the enemy despite insurmountable odds: they are "six hundred" against an "army."

Hence the appropriate answer is Bravery.

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3 0
2 years ago
Joe sold gold coins for $1,000 that he bought a year ago for $1,000. he says, "at least i didn't lose any money on my financial
solniwko [45]
The economist's analysis in the scenario painted above incorporates the idea of OPPORTUNITY COST.
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3 0
3 years ago
Read 2 more answers
Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $
Viefleur [7K]

Answer:

A. $2.40 per Machine hour

B. Underapplied = $10,000

C. cost of goods sold (debit) $10,000 , overheads (credit) $10,000

Explanation:

A) Compute the manufacturing overhead rate for the year

Overhead Rate = Total  Fixed Overheads / Budgeted Activity

                         =   $300,000 / 125,000 Machine hours

                         =   $2.40 per Machine hour.

B) What is the amount of under- or over applied overhead at December 31st?

Under Applied Overheads = Actual Overheads > Applied Overheads

Over Applied Overheads = Actual Overheads < Applied Overheads

Actual Overheads = $322,000

Applied Overheads = $2.40 × 130,000 hours = $ 312,000

Underapplied = $10,000

C) Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.

cost of goods sold (debit) $10,000

overheads (credit) $10,000

7 0
3 years ago
Read 2 more answers
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