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Sergeu [11.5K]
3 years ago
14

Catamount Company had current and accumulated E&P of $585,000 at December 31, 20X3. On December 31, the company made a distr

ibution of land to its sole shareholder, Caroline West. The land's fair market value was $234,000 and its tax and E&P basis to Catamount was $292,500. The tax consequences of the distribution to Catamount in 20X3 would be:
Business
1 answer:
Nata [24]3 years ago
5 0

Answer and Explanation:

No loss will be  recognized in the year 20X3 and a provide a reduction in E&P of $292,500

Given:

Current and accumulated E&P = $585,000

Fair market value = $234,000

Profit on accumulation:

Profit on accumulation = Current and accumulated E&P - Fair market value    Profit on accumulation =  $585,000 - $234,000

Profit on accumulation =  $351,000

Distribution is divided because accumulated profit in year 20X3 is higher then distribution.

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Baker loses the trial. baker's attorney can make a motion for
Eduardwww [97]
He can make a motion for <span>a judgment not withstanding the verdict. 
This motion can be use to render the decisions  made by the jury during the trial. This require the judge to withstand the decision notwithstanding the jury findings and give enough time for the attorney and the team to plan the next move for baker.</span>
5 0
2 years ago
Daphne contracts with speedy builders inc. To construct a six-foot fence around her yard. Daphne’s neighbor rando is delighted b
baherus [9]

If previously there was a letter of agreement, then Daphne can sue the builder quickly for violating the agreement. but if there is no written agreement then Daphne cannot sue the builder quickly.

An employment agreement or work contract is an agreement made by a worker with a company which is carried out orally or in writing. Usually, the employment contract is valid for a certain time or an indefinite time. The things discussed in it are, terms of work, rights and obligations.

  • A valid employment contract must meet the following criteria and requirements.
  • There are Workers and Employers
  • Work Implementation Information
  • Specific Time Information
  • Number of Wages Received
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  • Authority Information
  • Have Objects Clearly Organized
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You can learn more about employment agreement here brainly.com/question/28387425

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6 0
1 year ago
On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000 and $325,000, respecti
cupoosta [38]

Answer:

Journal entry to record the Sale of Patent

Debit : Cash $750,000

Credit : Patent at Book Value $120,000

Credit : Profit and Loss $630,000

Journal entry to record the Sale of Equipment

Debit : Cash $325,000

Debit : Profit and loss $75,000

Debit : Accumulated depreciation $150,000

Credit : Equipment at Cost $550,000

Explanation:

During a sale transaction the entity recognizes 1. The Cash Proceeds resulting from the sale, 2. The Profit or loss resulting from the sale, 3.The entity derecognizes the Cost or Book Value of the Asset as well as the Accumulated depreciation.

A profit of $630,000 has been earned as a result of the sale of the Patent, whereas a loss of $75,000 has been incurred as a result of sale of Equipment.

8 0
3 years ago
The purpose of the work opportunity tax credit is to encourage employers to hire individuals from specified target groups tradit
Yuki888 [10]

Answer:

true

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  • The given statement is true here because the purpose of Work Opportunity Credit is to encourage employers to hire people who are facing employment barriers and are resulting in high unemployment.
  • And examples of the target group are unemployed ex-servicemen, food stamp recipients etc..
  • so this is true statement

5 0
3 years ago
Which of these is a good?
Llana [10]
<h2>A $4.00 for car wash is good</h2>

Explanation:

Option A: A fancy hair cut option is given but it is not associated with any of the price. So we cannot say it is good or worth for the money.  

Option B: It seems to be valid. But when we consider all the given options, there are better options than this.

Option C: Rusted means a brown layer formed on the body of the car. So we cannot say it is good. So this option too is invalid.

Option D: Normally car wash costs $10. It is worth to do a complete car wash with $4.00. This option is the best choice.

4 0
3 years ago
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