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AysviL [449]
3 years ago
8

Mandel transferred property to his new corporation in a section 351 transaction. Among the several properties transferred by Man

del was land with a fair market value of $200,000 and a tax basis of $250,000. In all cases, the corporation will always take a tax basis in the land of $200,000 to prevent the "built-in loss" from being transferred from Mandel to the corporation.
True / False.
Business
1 answer:
JulsSmile [24]3 years ago
5 0

Answer:

False

Explanation:

§ 351 establishes that businesses shall not recognize any capital gain or loss from property transferred to them in exchange of stocks or partnership share. So the businesses have to record this type of transactions at their fair market value and not their tax basis.

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PLEASE HELP WILL GIVE BRAINLIEST OT CORRECT ANSWER
FromTheMoon [43]
<h2>Answer</h2>

B. adds up all the income collected by all the sellers.

<h3>Explanation</h3>

Calculating GDP via the income approach of the established approaches, the income generated by all factors of production is the most accurate answer for the Gross Domestic Product (GDP) of a country. This therefore establishes that the income generated by factors in the household in exchange of the services or products they have provided to consumers, represent the value of the total goods and services sold in the economy.


4 0
3 years ago
Read 2 more answers
The amount of goods or services that consumers are willing and able to buy is determined by
RoseWind [281]
The best answer is "C" or demand. Consumers will buy more or less depending on the demand. 

I hope this helps!
<em>~cupcake</em>
5 0
3 years ago
King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Paya
zimovet [89]

Answer:

January 1, 2020

Bonds Payable                                          1600000 Dr

Loss on Redemption of bonds                 36800 Cr

     Discount on Bonds Payable                        4800 Cr

     Cash                                                              1632000 Cr

Explanation:

The redemption of bonds before the maturity usually requires a payment for redemption which is a certain percentage of its face value. It is usually higher than the face value. The above bonds are redeemed at 102 which means at 102% of the face value of the bonds. Thus, the cash paid to redeem the bonds is,

Cash = 1600000 * 102%  =  1632000

The bonds have a carrying value, which is the face value less discount or add premium, of,

Carrying value = 1600000 - 4800  =  $1595200

If they are redeemed for an amount in excess of the carrying value, they are redeemed at a loss.

The loss on redemption is,

Loss = 1595200 - 1632000 = $36800

5 0
3 years ago
Which of the following situations represents commodity-backed money? Choose one:
Marta_Voda [28]

Answer: A. Dollars are printed on paper and have value because the government says they have value.

Explanation: Commodity backed money is a situation where by the value of money is backed up by its purchasing power with which it can be traded with at request. The supply of many can not be more than the purchasing power the country holds.

3 0
3 years ago
Werth Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit
____ [38]

Answer:

Option (A) is correct.

Explanation:

Given that,

Estimated fixed cost = $288,000

Estimated variable cost = $14 per unit

Units expects to produce and sell = 60,000

Selling price = $20 per unit

We first need to calculate the contribution margin:

Contribution margin per unit:

= Selling price - Variable cost

= $20 - $14

= $6

The break even point in units is the ratio of fixed cost to the contribution margin per unit.

Break-even point in units:

= Fixed cost ÷ Contribution margin per unit

= $288,000 ÷ $6

= 48,000 units

8 0
3 years ago
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