1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
monitta
4 years ago
12

SYBIL transfers property with a tax basis of $5,000 and a fair market value of $6,000 to a corporation in exchange for stock wit

h a fair market value of $3,000 and $2,000 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,000 on the property transferred. What is Sybil's tax basis in the stock received in the exchange? A. $6,000 B. $5,000 C. $4,000 D. $3,000 D. $3,000
Business
1 answer:
Vikki [24]4 years ago
6 0

Answer:

D. $3,000

Explanation:

The shareholder's tax basis =

SYBIL tax basis in the property transferred + gain recognized - cash received of $2,000 - the liability assumed by the corporation.

$5,000 + $1,000 - $2000 - $1,000 = $3,000.

If Sybil sells the stock for $3,000, no gain or loss will be recognized, an amount equal to the gain deferred of $0.

You might be interested in
Carla Corporation engaged in the following cash transactions during 2020. Sale of land and building $181,050 Purchase of treasur
bulgar [2K]

Answer:

the net cash used (provided) by financing activities is $ 84,600

Explanation:

<em>Under GAAP, the Dividends payment is accounted as a financing Activity.</em>

<u>Cash flow from Financing Activities</u>

Purchase of treasury stock                                  (42,900)

Payment of cash dividend                                   (89,700)

Issuance of common stock                                  150,700

Retirement of bonds                                            (102,700)

Net Cash flow from financing Activities              (84,600)

3 0
4 years ago
In the above problem, the proposed new branch will _______ overall risk exposure and produce a(an) ______ effect. Fill in the ap
vfiekz [6]

Answer:

reduces; geographic diversification

Explanation:

In the above problem, the proposed new branch will economics reduces overall risk exposure and produce a geographic diversification effect.

7 0
3 years ago
Brustle's Pottery either factors or assigns all of its receivables to other firms. This is known as: a. capital financing. b. ac
Mazyrski [523]

Answer:

Accounts receivable financing

Explanation:

The accounts receivables are used as a collateral to receive a loan from the bank or factor. The amount received are deducted from the loan assigned and the remainder are paid back to the firms. The interest rate is agreed between the factor and firm using invoice discounting. Whereas the factoring is the assigning of the responsibility of accounts receivables management to the other organization. So both of these are the ways through which accounts receivables are used to finance the company's working capital or long term projects.

5 0
3 years ago
Identical products, as well as a large number of buyers and sellers, are characteristics of a perfectly competitive market. In s
Rus_ich [418]

Answer:

The correct answer is True.

Explanation:

A perfectly competitive market has the following characteristics:

• There are many buyers and sellers in the

market.

• The goods offered by the different sellers

They are largely identical.

• Companies can freely enter and exit the

market.

As a result of these characteristics, perfectly competitive markets, result in:

• The actions of any buyer or seller

have an insignificant impact on the price of

market.

• Each buyer and seller takes the prices of

Market as dice.

A competitive market has many buyers and sellers trading with identical products so that each buyer and seller is price-accepting.

• Buyers and sellers must accept the price

determined by the market.

6 0
3 years ago
Average fixed cost____________.
dimulka [17.4K]

Answer:

d. declines continually as output increases.

Explanation:

The reason for this is that when because fixed cause remains the same as output increases the average fixed cost decreases when output increases. For example the fixed cost of a factory is 10,000 and it produces 100 units. In this case we will divide the fixed cost by the number of units to find the average fixed cost. 10,000/100=100

Now when we increase output to 200 the average fixed cost will decrease.

10,000/200=50.

Mathematically we can view this as the numerator is staying constant whereas the denominator is increasing when output increases, therefore average fixed cost is declining.

7 0
3 years ago
Other questions:
  • 1. In August of 2008, a mayor of a small town arrives home and finds a
    6·1 answer
  • Kerry, the new sales director, just completed her first staff meeting to set annual goals. She managed to get the team's consens
    15·1 answer
  • Imagine you are presenting a recycling lesson to 3rd graders today and to senior adults at a community center tomorrow. How woul
    9·1 answer
  • PLEASE HELP ASAP!!! (There are 4 Questions)
    12·2 answers
  • A company's ____________ is the percentage of the total target market for the product that belongs to the company.
    11·2 answers
  • The on balance volume (OBV) indicatorA) considers only the amount of daily trading volume.B) indicates an up market when heavy v
    6·1 answer
  • Gilbert, the CEO of a theme park, plans to have branches of the theme park in 20 countries in 10 years' time. To achieve this go
    8·1 answer
  • Ahmed owns a small motor repair shop that had a cash flow of $297,241 in the current period. If Ahmed expects his business to gr
    6·1 answer
  • The following information was compiled by Frank Ironman Incorporated:
    6·1 answer
  • The best cooling methods include all the following except
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!