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Anni [7]
3 years ago
14

Carlos transfers property with a tax basis of $965 and a fair market value of $1,135 to a corporation in exchange for stock with

a fair market value of $995 and $67 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $73 on the property transferred. What is the corporation's tax basis in the property received in the exchange
Business
1 answer:
nexus9112 [7]3 years ago
8 0

Answer:

$1,032

Explanation:

Calculation for the corporation's tax basis in the property received in the exchange

Based on the information given we were been told that he made a transfer of property with a TAX BASIS of the amount of $965 which as well include a FAIR MARKET VALUE of the amount of $67 which simply indicates or means that the amount of $1,032 ($965+$67) is the tax basis amount of the property that was received in the exchange.

Tax BASIS =Tax basis +Fair market value

Tax BASIS=$965+$67

Tax BASIS=$1,032

Therefore the corporation's tax basis in the property received in the exchange will be $1,032.

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Which analogy about leasing or financing a vehicle is correct
stealth61 [152]

Answer:

a b c or d

Explanation:

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3 0
3 years ago
Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follo
hammer [34]

Answer:

See below

Explanation:

Activity rate = Overhead costs/Estimated driver

Customer service : 175 per serv. req.

Project bidding : 400 per bid

Engineering support : 750 per design change

Activity costs allocated = Activity rate × Driver consumed

Activity costs

Gough industries. 39,800

Been inc. 47,150

The Martin group. 139,300

Artic Air inc.

Customer profitability report for the year ended, December 31

Gough industries Been inc. Martin Grou

Revenues

1,800,000 960,000 240,000

Cost of goods sold

840,000 448,000 112,000

Gross profit

960,000 512,000 128,000

Selling and administrative activities:

Customer service

6,300 4,900 20,300

Project bidding

20,000 16,000 38,000

Engineering support

13,500 26,250 81,000

Total selling and administrative support

39,800 47,150 139,300

Operating income(loss)

920,200 464,850 (11,300)

3 0
3 years ago
The manufacturing cost of Calico Industries for three months of the year are provided below. Total Cost Production (units) April
elena55 [62]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Total Cost Production (units)

April $119,400 281,300

May 92,000 162,800

June 99,000 238,000

<u>To calculate the variable cost per unit and the total fixed cost, we need to use the following formula:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (119,400 - 92,000) / (281,300 - 162,800)

Variable cost per unit= $0.231

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 119,400 - (0.231*281,300)

Fixed costs= $54,701

7 0
3 years ago
Excise taxes tend to.
natka813 [3]
Excise taxes tend to<span> increase prices.</span>
6 0
3 years ago
Changes in net operating working capital should not be reflected in a capital budgeting cash flow analysis because capital budge
Ede4ka [16]

Answer:

The correct answer is False.

Explanation:

Net working capital, or "Working Capital" is simply the difference between current or current assets and current or short-term liabilities of a company.

Cash flow, on the other hand, is the net amount of cash and its equivalents that is transferred inside and outside the company and that may originate in operational, investment or financing activities.

Cash flow will have an operational origin, when there is a net decrease in working capital. In this situation there will be a net cash release that the company can use freely to honor debts, reinvest in operations, pay dividends, cover expenses or provide funds for future investments.

A negative cash flow, from the point of view of operations, implies that the company has increased its cash demands to finance sales on credit or inventory. That is, it has increased its investment in working capital. Situation that will require an analysis that allows a better way to manage capital.

6 0
3 years ago
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