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gladu [14]
3 years ago
14

Market Corporation owns​ 100% of Subsidiary​ Corporation's stock. Market Corporation completely liquidates Subsidiary​ Corporati

on, receiving land with a​ $400,000 adjusted basis and a​ $500,000 FMV in exchange for Subsidiary​ stock, which has a​ $300,000 adjusted basis. Market Corporation has a basis in the land of ___________.
a. $300,000.
b. $400,000.
c. $500,000.
d. none of these
Business
1 answer:
ella [17]3 years ago
3 0

Answer:

c. $500,000.

Explanation:

Market Corporation has a basis in the land of $500,000.

We are told in the question that ''Market Corporation completely liquidates Subsidiary​ Corporation, receiving land with a​ $400,000 adjusted basis and a​ $500,000 Fair Market Value''

In the event of liquidation the value of an asset is no longer its carrying amount or book value but rather the amount at which the asset can be disposed which is the fair market value.

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Answer:

d. credit to Salaries Payable for $8,600

Explanation:

<em>The journal entry would be as follows.</em>

Magnum Company

Payroll Journal

Particulars                            Debit                    Credit

Salaries                       $12,000  Debit

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Social Security & Medicare taxes withheld      900 Credit

Salaries Payable                                               $8,600 Credit

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6 0
3 years ago
A competitive firm produces output using three fixed factors and one variable factor. The firm's short run production function i
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Answer:

D) 75

Explanation:

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The correct word for the blank space is: public.

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Which of the following assets on a bank's balance sheet has the greatest liquidity risk?
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3 years ago
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