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grin007 [14]
4 years ago
11

Fact Pattern: Conner purchased 300 shares of Zinco stock for $30,000 in 1994. On May 23, 2013, Conner sold all the stock to his

daughter Alice for $20,000, its fair market value at the time. Conner realized no other gain or loss during 2013. On July 26, 2013, Alice sold the 300 shares of Zinco for $25,000.What amount of the loss from the sale of Zinco stock can Conner deduct in 2013?
Business
1 answer:
Paul [167]4 years ago
8 0

Answer: Loss from sale of Zinco stock = $10,000

Explanation:

Given that,

Conner purchased 300 shares of Zinco stock for $30,000 in 1994

On may 23, 2013 conner sold all the shares to his daughter for $20,000

This clearly shows that conner incurred a loss of $10,000 from selling it to his daughter.

Hence,

Loss of $10,000 should be deducted from sale of zinco stock in 2013.

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Fittoniya [83]

In dealing with the Federal reserve, the key responsibilities of the Fed are lending money to the government and formulating monetary policies.

The federal reserve of the United states is what acts as the central bank of the country. The Feds helps to

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5 0
3 years ago
These people perform many of the activities required to move products efficiently from producers to consumers or industrial buye
Vadim26 [7]

These people perform many of the activities required to move products efficiently from producers to consumers or industrial buyers and are often wholesalers

Who are wholesalers ?

A wholesaler is a company or individual that purchases great quantities of products from manufacturers, farmers, other producers, and vendors. Wholesalers store them in warehouses and sell them on to retailers (shops and stores) and businesses.

Wholesalers are the merchant middlemen who sell mainly to retailers, other merchants, commercial, industrial, or institutional users. They buy principally for resale or business use.

The wholesaler’s business model is based on being the intermediary – the go-between. They operate between a product’s manufacturer and other businesses that want to sell that product.

What is the role of a retailers?

A retailer purchases in bulk from the wholesalers and sells the products to the customers in small quantities. A retailer essentially maintains a variety of merchandise. The aim of a retailer is to achieve maximum satisfaction by exceeding their expectations and delivering exceptional services

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4 0
2 years ago
Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acqui
Anni [7]

Answer:

a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.

b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.

d. The formula to calculate present value of expected free cash flows is:

PVn=CFn(1+in)n

The formula for the present value of expected free cash flows when discounted at WACC is:

PV=∑Nn=0CFn(1+in)n

Explanation:

a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.

b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.

d. The formula to calculate present value of expected free cash flows is:

PVn=CFn(1+in)n

The formula for the present value of expected free cash flows when discounted at WACC is:

PV=∑Nn=0CFn(1+in)n

8 0
4 years ago
Which of the following journal entries is recorded correctly and in the standard format?
Zanzabum

Answer:

D. Salaries and Wages Expense 530

Advertising Expense 910

Cash 1440

Explanation:

Salaries and wages expense, and advertising expense, are expenses, therefore, when they increase, they are debited.

Cash is an asset account, when it decreases, as in this case, it is debited.

The entry would be:

Account                                        Debit              Credit

Salaries and Wages Expense     530

Advertising expense                   910

Cash                                                                      1440

3 0
3 years ago
Presented below is information related to Crane Company at December 31, 2020, the end of its first year of operations.
pshichka [43]

Answer:

Follows are the solution to the given points:

Explanation:

In point a:

Formula:

= \text{sales-Cost of product sold -Selling and Administrative expense}

=316,550-150,400-53,900\\\\=112,250

In point b:

Formula:

=\text{Income from operation + Gain on sale of plant assets} - \text{Interest Expense} -\text{Loss from discontinued operations}\\\\=112,250+30,560- 5,840- 11,990\\\\=124,980

In point c:

Formula:

=\text{Net Income-  Allocation to noncontrolling interest}

= 124,980 - \text {missing value}

In point d:

Formula:

=\text{Net Income+ Unrealized gain on available for sale debt investments}\\\\= 124,980- 9,460\\\\=115,520

In point e:

Formula:

=\text{Net Income - Dividends declared and paid}\\\\=124,980- 4730\\\\=120,250\\\\

5 0
3 years ago
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