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Lana71 [14]
3 years ago
11

Broom Corporation transfers assets with an adjusted basis of​ $300,000 and an FMV of​ $400,000 to Docker Corporation in exchange

for​ $400,000 of Docker Corporation stock as part of a taxminusfree reorganization. The Docker stock had been purchased from its shareholders one year earlier for​ $350,000. How much gain do Broom and Docker Corporations recognize on the asset​ transfer?
Business
2 answers:
Helen [10]3 years ago
7 0

Answer:

Niether of the party to contract earned any gain on this investment

Explanation:

The reason is that the both companies exchanged assets whose Fair Market value was equal to the amount received. This is because the Baron Corporation would would had written down its asset at FMV which means the asset is sold at a price that actually costs the Broom Corporation if it uses the asset for its rest of the life. Furthermore, the Docker will also not recognize any gain on the stock repurchased sold because it is not permitted in the accounting standard.

sertanlavr [38]3 years ago
7 0

Answer:

Both Broom and Docker Corporation have zero gains

Explanation:

The price Broom corporation sold it asset is will be detrimental, this is because the price that Broom corporation sold it asset will costs Broom corporation if it wants to use it assets and the cost well be for the rest of their life. Also as we can see, Docker corporation will not have any gain on the stock repurchased sold this is so, because in accounting standard, it is not permitted. The two corporation assets that were exchange by companies has equal or fair Market value which was equal to the amount both of them received.

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Ganezh [65]

Answer:

Clarity and accuracy are important parts of writing because it helps people understand what the writer is talking about. You don't want people to read your report or proposals and be confused.

Explanation:

5 0
3 years ago
Held-to-Maturity Bond Investment On January 1, 2016, Weaver Company purchased as held-to-maturity debt securities $500,000 face
yulyashka [42]

Answer:

b. $461,820

Explanation:

The computation of the amount reported in the balance sheet is shown below:

But before that we need to find out the amortization of discount which is

= Purchased value of bond × interest rate of return - face value of bond × interest rate

= $456,200 × 10% - $500,000 × 8%

= $45,620 - $40,000

= $5,620

Now the amount reported is

= Purchased value + discount amortization

= $456,200 + $5,620

= $461,820

Hence, the option b is correct

8 0
2 years ago
What is 55 billion expressed in scientific notation?
iogann1982 [59]
55 x 10^9 hope this helped :D
7 0
2 years ago
Read 2 more answers
Matthew Granger is a member of the board of directors at Produxicore Inc. Over a period of one year, Matthew failed to attend mo
FrozenT [24]

Answer: Negligence of duties

Explanation:

As a board member it's one of his primary duty to keep abreast of the firm performance. Not been aware for a year on the excuse of not been informed and not seeking to find out personally shows a negligence of duties.

7 0
3 years ago
Explain the relationships among speed, frequency, and the number of poles in a three-phase induction motor
Triss [41]

The synchronous speed (rpm) equals 60 times the frequency divided by the number of pole pairs. For 50Hz, a two-pole motor will have a synchronous speed of 3000 rpm, a four-pole motor of 1500 rpm.

The actual speed is a few percent lower due to the slip of the asynchronous motor.


The slip increases with the torque, typical values are 5–10%. The rated speed for a four-pole motor at 50Hz will thus be something like 1360 rpm. At no-load, the slip is very small.
5 0
3 years ago
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