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Strike441 [17]
2 years ago
10

Alexie transfers land valued at $250,000 (her basis = $220,000) to Sorenson Corp. in exchange for Sorenson common stock valued a

t $210,000 and cash of $40,000 in a Section 351 transaction. What is Alexie's recognized gain and her basis in Sorenson stock?
Business
1 answer:
r-ruslan [8.4K]2 years ago
7 0

Answer:

A. $30,000 gain recognized

$210,000 Basis

B.The gain which was recognized will be the lesser of the amount of the gain realized .

Explanation:

Alexie's recognized gain and her basis in Sorenson stock would be:

a)land valued $250,000 - Basis $220,000 =$30,000

This means that the $30,000 will be gain recognized and her basis will be $210,000

b)The gain which was recognized will be the lesser of the amount of gain realized which is

(Land value $250,000 - Basis $220,000 = $30,000)

Less FMV of the boot received which is $40,000 = $210,000

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Here is some price information on Fincorp stock. Suppose first that Fincorp trades in a dealer market. Bid Asked 55.25 55.50 a.
Artemon [7]

Answer:

a. Your trade will be executed at the bid price of 55.25.

b. Your trade will be executed at the ask price of 55.50.

Explanation:

First note that:

The bid price is the highest price a buyer will pay for a security.

The ask price is the lowest price a seller will accept for a security.

Therefore, we have:

a. Suppose you have submitted an order to your broker to buy at market.  At what price will your trade be executed? (Round your answer to 2 decimal places.)

Since you are the buyer, your trade will be executed at the bid price of 55.25. This is because the bid price is the highest price you as a buyer will pay for a security.

b. Suppose you have submitted an order to sell at market. At what price will your trade be executed? (Round your answer to 2 decimal places.)

Since you are the seller, your trade will be executed at the ask price of 55.50. This is beecausee the ask price is the lowest price uou as a seller will accept for a security.

7 0
2 years ago
Sanders Enterprises arranged a revolving credit agreement of $9,000,000 with a group of banks. The firm paid an annual commitmen
Kaylis [27]

Answer:

Total dollar Annual Cost = $300,000

Explanation:

  • Total loan Commitment = 9000000
  • Borrowed Fund (Used Portion) = 6000000
  • Unused Portion (9000000 - 6000000) = 3000000
  • Annual Commitment Fee for unused Portion = 0.50%
  • Commitment Fee = 3000000 x 0.05% = 15000
  • Borrowed Fund (Used Portion) = 6000000
  • Interest Rate (3.25% + 1.5%) = 4.75%
  • Interest Cost (6000000 x 4.75%) = 285000

Total dollar Annual Cost (15000 + 285000) = $300,000

5 0
3 years ago
International Imports is a merchandising Firm. Last year they reported sales of $674,500 and cost of goods sold of $404,700. The
dimaraw [331]

Answer:

The total contribution margin for the firm is: $209,095

Explanation:

The contribution margin is calculated by using following formula:

Contribution margin = Total sales – Total variable costs

In International Imports,

Total sales = $674,500

Total variable costs  = cost of goods sold + total variable selling and administrative expense = $404,700 + $60,705 = $465,405

Contribution margin = $674,500  - $465,405 = $209,095

7 0
3 years ago
The situation where one person's demand for a good depends on the consumption of the good by others is called a
ehidna [41]

Answer:

Network externality is the correct answer.

Explanation:

7 0
3 years ago
Reports that trace the entry of and changes to critical data values are called ____ and are essential in every system.
ivanzaharov [21]

Answer:

audit trails

Explanation:

Reports that trace the entry of and changes to critical data values are called <u>audit trails</u> and are essential in every system.

8 0
3 years ago
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