1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ann [662]
3 years ago
14

Jonas is a 60% owner of Ard, an S corporation. At the beginning of the year, his stock basis is zero. Jonas's basis in a $33,200

loan made to Ard and evidenced by Ard's note has been reduced to $0 by prior losses. During the year, Jonas's net share of Ard's taxable income is $16,600. At the end of the year, Ard makes a $24,900 cash distribution to Jonas. After these transactions, what is Jonas's basis in his stock, and what is his basis in the debt? What is Jonas's recognized capital gain?
Business
1 answer:
olya-2409 [2.1K]3 years ago
6 0

Answer:

Capital gain $24,900

Explanation:

Jonas's Stock basis $33,200

Less $8,300

Capital gain $24,900

$24,900 cash distribution - Net share of Ard's taxable income $16,600= $8,300

Therefore Jonas's recognized capital gain

of $24,900

You might be interested in
Differentiate between a defined contribution pension plan and a defined benefit pension plan. Explain how the employer's obligat
serg [7]

Answer:

Differences Between a Defined Contribution Pension Plan and a Defined Benefit Pension Plan.

With a defined contribution pension plan, the benefit that will accrue to the employee is not known or defined ahead of her retirement.  But the contributions that will be made by the employer and the employee to fund the pension are clearly spelt out.

With a defined benefit pension plan, the benefit (i.e. the monthly payment to the retiree) is stated ahead of the pension time.  It is based on the employee's tenure and salary.  Employees do not contribute to the plan but are entitled to lifetime monthly payments.

Explanation:

The employer and each employee contribute some certain percentages to each worker's individual retirement account (IRA) under the defined contribution pension plan.  Under the defined benefit pension plan, the employer is solely responsible for funding the plan and the employee benefits via a monthly payment from the funding plan during retirement.

3 0
2 years ago
In the long run, an increase in the money supply will affect the price level and real GDP of an economy in which of the followin
Mars2501 [29]

Answer:

1. Lower the interest rates in the economy.

2. Increase asset prices

Explanation:

Remember, increase in money supply looks at the total money made available in circulation in an economy. Alternatively it is called liquidation.

The real of an economy takes into consideration the impact of inflation on the value of goods and services produced in an economy.

Therefore lower interest rates as a result of increase in money supply would results in more consumption and borrowing.

While the price of houses, stocks would rise because of the increased money supply.

4 0
2 years ago
Refer to Exhibit 7.4, which shows short-run average cost curves. Average cost is lowest for a medium plant when output is _____
MatroZZZ [7]

Answer: c) between Qa and Qb

Explanation:

From the exhibit, the lowest cost will be recorded when output is between Qa and Qb because these points represent the lowest costs per unit for Curves A and C and the lowest points where output can be produced. Output being produced at costs lower than this is therefore the lowest for the medium plant.

3 0
2 years ago
Assume Canada can either produce three bushels of barley or six bushels of hay in a set period of time, and China can produce ei
mario62 [17]

Answer:

Explanation:

Abcdefg

5 0
3 years ago
A certificate of deposit offers a nominal interest rate of 3.5 percent annually.
Snezhnost [94]
I’m pretty sure the answer is c
4 0
2 years ago
Other questions:
  • For the execution of a successful communication strategy, staff synchronization _____.
    7·2 answers
  • Consider a two-period endowment economy populated by identical house- holds with preferences defined over consumption in period
    7·1 answer
  • Will leaving the country make an American businessman immune to U.S. laws?
    10·1 answer
  • At Flo Valley Manufacturing, workers are encouraged to find their own solutions to problems, and to implement their solutions wh
    6·1 answer
  • With respect to competitive advantages, many see __________ as the most important asset that an organization can possess, as it
    6·1 answer
  • The company has the largest market share in the industry. In order to restrain the smaller competitors in the market, the compan
    7·1 answer
  • has projected EBIT to be $225,000 for next year. Their tax rate is 21% and there is $`500,000 in equity. Precise Electronics Inc
    5·1 answer
  • Sebastian Motors is a family-owned car dealership with two locations in central France. The car dealership markets BMWs and Mini
    11·1 answer
  • You believe your restaurant concept can generate $50,000 in net profit per year. Your investors demand at 20% return on investme
    11·1 answer
  • chapter 13Identify the type of cash flow activity for each of the following events (operating, investing, or financing). The com
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!