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QveST [7]
3 years ago
15

Dole, the sole owner of Enson Corp., transferred a building to Enson. The building had an adjusted tax basis of $35,000 and a fa

ir market value of $100,000. In exchange for the building, Dole received $40,000 cash and Enson common stock with a fair market value of $60,000. What amount of gain did Dole recognize?
A. $0
B. $65,000
C. $40,000
D. $5,000
Business
1 answer:
faust18 [17]3 years ago
4 0

Answer:

C. $40,000

Explanation:

For computing the amount of the gain recognized, first we have to calculate the gain recognized based on the adjusted basis

= Cash received + fair market value of the stock - adjusted cash basis

= $40,000 + $60,000 - $35,000

= $100,000 -$35,000

= $65,000

But the cash is received for $40,000. So, only $40,000 of gain would be recognized. As in the case of transfer, if the amount is received other than the stock so the amount which is received is recognized as a gain i.e $40,000

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Answer:

The correct answer is True.

Explanation:

In the business world, the only good thing we can get out of the times of crisis is that they give you the opportunity to reinvent your company, products or services completely, whether it is to remain competitive or to survive.

The change may come due to crisis situations, the appearance of new competitors, changes in consumer habits or tastes.

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2 years ago
Identify the incorrect statement concerning globalization. A. It has been blamed for unemployment in developed nations, environm
konstantin123 [22]

Answer:

C. It is transforming industries and is highly welcomed by those who believed their jobs were protected from foreign competition.

Explanation:

Globalization is integration of world economies. it has created threat to the employment opportunities in the developed countries since the large number of jobs are being outsourced to other countries.

3 0
3 years ago
The following bond investment transactions were completed during a recent year by Starks Company: Year 1 Jan. 31 Purchased 75, $
Nadusha1986 [10]

Answer and Explanation:

The Journal entries is shown below:-

Jan 31

Investment in Govt Bonds Dr, $75,000

Interest Receivable Dr, $375  

      To Cash 75,375

(Being cash is recorded)

July 31

Cash Dr $2,250  

      To Interest Receivable $375

       To Interest Income 1,875

($75000 × 6% × 5 ÷ 12)

(Being interest on bond is recorded)

Aug 30

Cash Dr, $34,650

Loss on Sale of Bonds Dr, $700

($35,000 - 980 × $35)                

     To Investment in Govt Bonds $35,000

      To Interest Income $350

(Being loss on sale is recorded)

Dec 31

Interest Receivable Dr,  $1,200  

To Interest Income $1,200

(40 × $1,000 × 6% × 6 ÷ 12)

(Being interest on bonds is recorded)

3 0
2 years ago
With a lifestyle, people select products and services that fulfill their diverse needs and interests, rather than conforming to
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  • Consumers' free choices are not based on military lifestyle, which is restricted to the military personnel.

  • Free choice is not a factor of career lifestyle, which has more to do with the availability of resources.

  • Consumers' free choices are not a result of fad lifestyle, which refers to the general conformity of the population to a particular style.

Thus, the only lifestyle, which has enabled people to select products and services to meet their specific needs and interests, is component lifestyle.

Read more about lifestyles at brainly.com/question/12065546

6 0
3 years ago
Read 2 more answers
Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,
Alecsey [184]

Answer:

The correct journal entry for the sale of electronic component is option E

Explanation:

Notes Receivable A/c................Dr   $7,800

            Sales A/c..................................Cr   $7,800

On sale of the electronic component, the company received notes receivable so any increase in asset is debited. Therefore, notes receivable is debited with the sale value or amount. And made a sale account so the sale account is credited.

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