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musickatia [10]
3 years ago
15

Tracy transfers property with a value of $60,000 and adjusted basis of $50,000 to form Riley Corp. solely in exchange for all 10

0 shares of Riley stock valued $60,000. What is Riley Corp.'s basis in the property
Business
1 answer:
Olin [163]3 years ago
4 0

Answer:

$60,000

Explanation:

Tracy's basis on the transfer is $50,000 and the amount realized is $60,000.

So Tracy should have a realized gain of $10,000, but Section 351 states that no gain or loss must be recognized when one person transfers property in exchange for a corporation's stock if immediately after the transfer, the person controls the corporation. In this case, Tracy will own 100% of Riley Corp., so she doesn't have to recognize any gain.

Riley Corp.'s basis on the property will be $60,000 which is equal to the fair market value and the value realized by Tracy.

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a market is a market for new issues of securities. a market is a market for already existing securities.
Oksi-84 [34.3K]

Market for new issues of securities is Primary Market and Market for already-existing securities is Secondary Market.

What is Secondary Market?

Investors can acquire and sell securities they already possess on the secondary market. Although stocks are also sold on the main market when they are originally issued, it is what most people refer to as the "stock market."

Therefore,

Market for new issues of securities is Primary Market and Market for already-existing securities is Secondary Market.

To learn more about Secondary Market from the given link:

brainly.com/question/17168396

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3 0
1 year ago
In the market for financial capital, ________.a. those who demand financial capital receive interest on loans. b. those who supp
Flauer [41]

Answer:

The answer is C.

Explanation:

In financial market, it is the money that customers save that is available for loans. So customers supply money for loan into the financial market, and the demand for this money makes loan.

The financial markets help to save money for the future and to borrow money for current use.

3 0
3 years ago
A random sample of 84 shoppers were interviewed and 51 said they prefer to shop alone rather than with someone else. let p repre
Dmitry [639]
The point estimate or p hat is a single value that shows the best estimation of a certain parameter among a population.

To calculate point estimate, we divide the parameter by the whole population.

In case of this problem:
p hat = 51/84 = 0.607

To get the percent, we multiply the output by 100:
% of point estimate = 0.607 x 100 = 60.7%
7 0
3 years ago
Solvency refers to: A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay
Papessa [141]

Answer:

A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay debt when due.

Explanation:

Solvency is defined as the long-term ability of a business the generate enough cash flow that will allow it to continue its operations and also to pay of its debt when due.

It is used as a measure of the financial health of the business.

A business with good solvency has a high probability of remaining in operation for the foreseeable future.

4 0
3 years ago
A manufacturing plant is trying to determine standard production per day for an incentive program. Suppose that the incentive pr
raketka [301]

Answer:

He would receive $15 under incentive plan.

Explanation:

The given values are:

Average observed time

= 280 seconds per unit

Performance rating

= 105%

i.e.,

= 1.05

Allowance factor

= 13%

i.e.,

= 0.13

So,

⇒  Standard \ time = \frac{(Average \ observed \ time\times Performance \ rating)}{1-Allowance \ factor}

On putting the estimated values, we get

                             =\frac{(280\times 1.05)}{(1-0.13)}

                             =\frac{294}{0.87}

                             = 337.93 \ seconds

The available time will be:

= (8 \ hours\times 60 \ min/hr\times 60 \ sec/min)

= 28800  \ seconds

Now,

The Standard production per day will be:

= \frac{Available \ time}{Standard \ time}

= \frac{28800}{337.93}

= 85.22 \ units

Since he generates 100 units, he consumes about 15(00-85,22) units per day well above normal production.  

So that he's going to get:

= 15\times 1

= 15 ($)

8 0
2 years ago
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