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dlinn [17]
3 years ago
11

Swan Corporation makes a property distribution on 12/31/13 to its sole shareholder, Matthew. The property distributed is a cotta

ge (fair market value of $200,000; basis of $150,000) that is subject to a $35,000 mortgage that Matthew assumes. Before considering the consequences of the distribution, Swan’s current E & P is $300,000 and its accumulated E & P is 100,000. Swan makes no other distributions during the current year.
What is Swan’s taxable gain on the distribution of the cottage?

What is Swan's current E&P after the distribution on 12/31/13?

What is the taxable dividend to the shareholder (if any)?

What is the shareholder's basis in hte cottage?
Business
1 answer:
ra1l [238]3 years ago
3 0

Answer:

What is Swan’s taxable gain on the distribution of the cottage?

Fair market value of property = 200000

Less: adjusted basis of property= 115000(150000-35000)

Taxable gain on distribution = 85000

What is Swan's current E&P after the distribution on 12/31/13?

Swans current E&P = 300000

Add: taxable gain on distribution = 85000

Less: distribution made = 165000(200000-35000)

After distribution E&P = 220000

What is the taxable dividend to the shareholder (if any)?

Taxable dividend to shareholders = 200000-35000 = 165000

What is the shareholder's basis in the cottage?

Shareholders basis is FMV of property i.e. 200000

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Explanation:

The political risk found in managing any business are the influences government policies have on that business, this includes taxes,spending,regulation,currency valuation,trade tariffs, minimum wage and environmental regulation.

7 0
3 years ago
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Taya2010 [7]

Answer:

Askew Company

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2. Adjusting Journal Entries:

Debit Cost of Goods Sold $243,000

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Credit Freight-in $19,000

Credit Inventory $231,000

To record the cost of goods sold.

Explanation:

a) Data and Calculations:

Account                                       Debit    Credit

Merchandise inventory, 7/1/17 33,000

Sales                                                     390,000

Sales returns                            13,000

Purchases                             250,000

Purchase discounts                                7,000

Purchase returns                                   11,000

Freight-in                                19,000

Merchandise inventory, 7/1/17        $33,000

Purchases                                       250,000

Purchase discounts                           (7,000)

Purchase returns                              (11,000)

Freight-in                                           19,000

Cost of goods available for sale $284,000

June 30, 2018, inventory balance $41,000

Cost of goods sold                     $243,000

Adjusting Entry:

Debit Cost of Goods Sold $243,000

Debit Purchases discounts $7,000

Credit Freight-in $19,000

Credit Inventory $231,000

To record the cost of goods sold.

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3 years ago
A business function, like accounting and human resources, which moves information about people, products, and processes across t
Whitepunk [10]

Answer:

The correct answer is "management information systems"

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The management information system (MIS) is a system of financial information, such as accounting and human resources, that provides valuable information in order to take business decisions and solve the problems of the company. The management information system generates normal reports on operations for every level of management.

8 0
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a(n) ______ team is a group of experienced people from different areas of business who join together to form a managerial team w
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Entrepreneurial team  is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.

<h3>What is Entrepreneurial team?</h3>

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ROE = $53,920.96/$353,326 × 100

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