Sarah exchanges a building and land (used in her business) for Tyler’s land and building and some equipment (used in his busines
s). The assets have the following characteristics. Adjusted Basis Fair Market Value Sarah’s real property $120,000 $300,000 Tyler’s real property 60,000 220,000 Equipment 50,000 80,000 What are Sarah’s recognized gain or loss and basis for the land and building and equipment acquired from Tyler
1 answer:
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Answer: $26; $28.057
Explanation:
Total value = $260 million in assets
Shares outstanding = 10 million
Dividends = $2.5 million
Fund value at the start of the year =
=
= $26
Fund value at the end of the year:
Dividend per share =
=
= $0.25
Price gain at 9% with deduction of 1% of 12b-1
Fund value at the end of the year = $26 × 1.09 × (1 - 0.01)
= $28.057