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makkiz [27]
3 years ago
14

Carlos transfers property with a tax basis of $500 and a fair market value of $800 to a corporation in exchange for stock with a

fair market value of $650 and $50 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $100 on the property transferred. What is the corporation's tax basis in the property received in the exchange?a. $800 b. $600 c. $550 d. $450
Business
1 answer:
12345 [234]3 years ago
4 0

Answer:

c. $550

Explanation:

Property has transfered by Carlos, and at the time of Transfer Carlos basis on the Property is $500.

So, from "Carryover basis" rule:

Corporation Tax basis on Property is = Basis of Carlos + Gain recognised.

                                                              = $500 + $50

                                                              = $550.

Therefore, The corporation's tax basis in the property received in the exchange is $550

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Cash flows from investing activities include all of the following except:
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Answer:

(D) Cash proceeds from borrowing

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets. It also includes collections on loans and  Cash advance to borrowers

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3 years ago
Stock R has a beta of 1.8, Stock S has a beta of 0.75, the expected rate of return on an average stock is 9%, and the risk-free
PIT_PIT [208]

Answer:

Stock R more beta than Stock S = 4.2%

Explanation:

given data

Stock R beta = 1.8

Stock S beta = 0.75

expected rate of return = 9% = 0.09

risk-free rate = 5% = 0.05

solution

we get here Required Return

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Required Return (Re) = 0.05 + ( 0.09 - 0.05 ) B

Required Return (Re) =

so here

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Stock R = 0.122  = 12.2 %

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Stock S =  0.08 = 8%

so here more risky stock is R and here less risky stock is S

Stock R is more beta than the Stock S.

Stock R more beta Stock S =  12.2 % - 8%

Stock R more beta Stock S = 4.2%

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3 years ago
I didn't sign up for this and I'd like my money back and to delete this account
prohojiy [21]

Answer:

Simply ask a lot of innapropiate questions and the moderators will kick u out! Have fun!

Explanation:

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