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Stels [109]
3 years ago
9

Carol and Dave each purchase 100 shares of stock of Burgundy, Inc., a publicly owned corporation, in July for $10,000 each. Caro

l sells her stock on December 31 for $8,000. Because Burgundy's stock is listed on a national exchange, Dave is able to ascertain that his shares are worth $8,000 on December 31. Does the tax law treat the decline in value of the stock differently for Carol and Dave?
a. They are treated the same as both experienced a decline in stock value that is considered a realization event.
b. They are treated differently because the loss in value of Carol's stock is the result of a sale, while the loss in value of Dave's stock is simply a decline in value.
c. They are treated the same because Carol and Dave have a decline in fair market value, which is considered the relevant factor.
Business
1 answer:
Illusion [34]3 years ago
6 0

Answer:

b. They are treated differently because the loss in value of Carol's stock is the result of a sale, while the loss in value of Dave's stock is simply a decline in value.

Explanation:

Although the stock owned by Carol and by Dave declines in value by $2,000, however Carol only has a realized and recognized loss of $2,000. The main factor in determining whether a disposition has taken place often whether an identifiable event has occurred. In the current scenario, Carol’s stock sale qualifies as a disposition and the Dave’s stock value decline does not qualify as a disposition and is simply a decline in value.

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Recent financial statements of General Mills, Inc. report net sales of $12,442,000,000. Accounts receivable are $912,000,000 at
cluponka [151]

Answer:

13.34

Explanation:

In this question, we are told to compute the account receivable turnover at the end of the year.

To calculate this , we proceed using a mathematical approach;

mathematically;

Accounts receivable turnover = Net Sale / (Average accounts receivable)

From the question, we can identify that the net sale is $12,442,000,000 while the average accounts receivable which is the average of the account receivable at the start of the year and that at the beginning of the year

= $ 12442000000 / (912000000 + 953000000)/2

= $ 12442000000 / 932500000

= 13.34

3 0
3 years ago
Stockholders' equity:________A. Is equal to assets minus liabilities B. Represents the interest of the owners in the assets of a
marshall27 [118]

Answer:

D. All of the above

Explanation:

Stockholder equity is also known as shareholders' equity.  The shareholder's equity is composed of their capital contribution plus the retained earnings.  In the balance sheet, the value of shareholder equity equals assets minus liabilities.

Stockholder equity is the amount that shareholders will receive if the assets of a company are to be liquidated after liabilities have been settled. It is the shareholder interest in the company.

5 0
2 years ago
Write any four advantages of living in a community<br><br>​
Lina20 [59]
When you live in a community there is a sense of belonging since people know each other

When you live in a community there is usually security or neighborhood watch to keep you safe

When you live in a community there is cooperative because of there isn’t it won’t be a very happy community

There is a lot of places to be social in a community

When you live in a community there is a cleaner environment due to the city cleaning it
8 0
3 years ago
Maxwell Communications paid a dividend of $1.35 last year. Over the next 12 months, the dividend is expected to grow at 11 perce
PilotLPTM [1.2K]

Answer:

Current dividend paid (Do) = $1.35

Growth rate (g) = 11% = 0.11

Cost of equity (ke) = 24% = 0.24

Po = Do<u>(1 + g)</u>    

           Ke - g

Po = $1.35<u>(1 + 0.11)</u>

                 0.24 - 0.11

Po = <u>$1.4985</u>

            0.13

Po = $11.53                                                                                                                                                                                                                

Explanation:

The current market price of the stock is a function of current dividend paid, subject to growth rate, divided by the current market price of the stock.

4 0
3 years ago
__________ is a growing tool for managers to enhance communication and collaboration in support of empowered or bossless work en
Dafna11 [192]

Answer:

The correct approach will be "Social media ".

Explanation:

  • Social media become web-based communication platforms that always allow the individual to communicate with one another through intelligence sharing as well as consumption.
  • It is an internet-connected communication method whereby the participants build virtual forums to exchange knowledge, ideas, private correspondence, and certain other functionality.
3 0
3 years ago
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