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Vladimir [108]
4 years ago
12

Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,600,000, for 50 shares in Crow C

orporation. Mary transfers property, basis of $80,000 and value of $1,480,000, and agrees to serve as manager of Crow for one year; in return Mary receives 50 shares of Crow. The value of Mary's services is $120,000. With respect to the transfers:
a.Mary will not recognize gain or income.
b.Earl will recognize a gain of $1,400,000.
c.Crow will have a business deduction of $120,000 for the value of the services Mary will render.
d.Crow Corporation has a basis of $1,480,000 in the property it received from Mary.
e.None of these choices are correct.
Business
1 answer:
barxatty [35]4 years ago
4 0

Answer: The correct answer is "c.Crow will have a business deduction of $120,000 for the value of the services Mary will render.".

Explanation: With respect to the transfers: Crow will have a business deduction of $120,000 for the value of the services Mary will render.

This is calculated by the difference between the value of the property contributed by Earl $1 600 000 and the value of the property contributed by Mary $1 480 000.

1 600 000 - 1 480 000 = $ 120 000.

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Answer:

Statement Savings Account is said to be a deposit account held by a bank where a customer can earn interest .

In Statement Savings Account, the interest will be relatively low and there may be a possibility of restricted number of withdrawals.

In Statement Savings Account, the interest rate gained can either increase or decline overtime while putting into consideration the interests rate set by the federal reserve.

In Statement Savings Account,  a good number of this said savings investment offers debit cards which allows a customer to withdraw money via an ATM Machine or through electronic transfer.

In Statement Savings Account, there may be restrictions as regards the minimum account balance.

while

  • In Certificates of Deposit, there is a strict requirement of meeting a minimum account and not being able to execute withdrawals from the said account for a given duration.
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3 0
3 years ago
Bramble Corp., Inc. can produce 100 units of a component part with the following costs: Direct Materials $23000 Direct Labor 350
tia_tia [17]

Answer:

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Explanation:

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