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3241004551 [841]
3 years ago
9

Bruce receives 20 stock rights in a nontaxable distribution. The stock rights have an FMV of $5,000. The common stock with respe

ct to which the rights are issued has a basis of $4,000 and an FMV of $120,000. Bruce allows the stock rights to lapse.
He can deduct a loss of:


A) $0.


B) $1,000.


C) $5,000.


D) none of the above
Business
1 answer:
svlad2 [7]3 years ago
4 0

Answer:

c. $5,000

Explanation:

Bruce can deduct loss of $5,000

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On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million, $1 par, common shares, to b
uranmaximum [27]

Answer and Explanation:

The journal entry is given below:

Stock dividends Dr $60.00  

         To Common stock  $60.00

(Being the issue of stock dividend is recorded)

Here the stock dividend is debited as it reduced the stockholder equity and credited the common stock as it increased the stockholder equity

Also the par per share after the split is $1

8 0
3 years ago
A Level 2 topic in a Word outline will be used in PowerPoint to create a
yan [13]

The level 2 topic would become the first level bullet item. (OPTION A)

Reason: The level 1 would become the slide titles and the level 2 would become the first level bullet items in the slide and the level 3 would become sub bullets or the second level bullet items and so on

So to conclude, the level 2 would become first level bullet item

8 0
3 years ago
An insurer sells a very large number of policies to people with the following loss distribution: $100,000 with probability 0.005
kogti [31]

Answer:

a) $2000

b)  $1,886.7925

C) $2,036.7925

Explanation:

First, the question states to determine the expected claim cost per policy

Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.

A) Expected Claim Cost per policy

= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)

= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000

Part B: discounted expected claim cost per policy

Since, the sum of $2000 is expected to be paid by the insurer by the end of the year, the interest to be earned based on the rate  (discounting used)

=$2,000 ÷ (1  + 0.06)

= $1,886.7925

Part C:: Determine the Fair Premium

Fair Premium is calculated as follows

The discounted policy claim cost + the Processing Cost per application + The fair profit loading

= $1,886.7925+ $100+50 = $2,036.7925

3 0
3 years ago
What is the source of energy during the energy investment phase of glycolysis?
Leno4ka [110]

The source of energy during the energy investment phase of Glycosis are two ATP molecules.

Explanation:

During the energy investment phase of glycolysis , the energy source comes from two ATP molecules which then results in the formation of the two molecules of glyceraldehyde phosphate.

The two molecules of glyceraldehyde phosphate are then used for the second process of glycosis in which energy  is emanated and not invested.

Glycosis is the process that is characterized by the breakdown of enzymes into smaller molecules and constituent elements.

8 0
3 years ago
There are 3 factories on the Momiss River. Each emits 2 types of pollutants, labeled P1 and P2, into the river. If the waste fro
hichkok12 [17]

Answer:

Kindly check explanation

Explanation:

Using table for our evaluation :

____________POLLUTANT

Factories___P1 ______P2 ____COST

__1_______0.1______ 0.45 ___ 1500

__2______ 0.2 _____ 0.25 ____1000

__3 ______0.40 ____ 0.30 ____2000

_________ ≥ 30 ____ ≥ 40 _____ z

Let amount of waste produced by Factories 1, 2 and 3 equal f1, f2 and f3 respectively.

Linear Program that will minimize the cost of reducing pollution by the desired amounts

Min cost:

min z = 1500f1 + 1000f2 + 2000f3

0.1f1 + 0.2f2 + 0.4f3 ≥ 30

0.45f1 + 0.25f2 + 0.3f3 ≥ 40

f1, f2, f3 ≥ 0

4 0
3 years ago
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