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Naily [24]
3 years ago
13

Jed Castanza transfers $90,000 of cash to the JN partnership for a 60 percent interest in the JN partnership. Ned transfers a bu

ilding with an adjusted basis of $30,000 and a fair market value of $100,000, subject to a debt of $40,000 that the partnership assumes, in exchange for a 40 percent interest in the JN partnership. Determine each partner’s adjusted basis in his partnership interest. Does either partner recognize any gain on the transfer to the partnership
Business
1 answer:
mojhsa [17]3 years ago
8 0

Answer:

Their basis will be 90,000 for Mr Castanza

and 60,000 for Ned

Also Ned will recognize a capital gain for 70,000 when performing the transfer of the property. As his adjusted basis is 30,000 while the property value is 100,000

Explanation:

Mr Castanza

90,000 = 60%

Ned

100,000 - 40,000 = 60,000 = 40%

Total capital

90,000 + 60,000 = 150,000 = 100%

<u>Check for difference:</u>

90,000/150,000 x 60% = 90,000

60,000/150,000 x 40% = 60,000

Their basis will be 90,000 for Mr Castanza

and 60,000 for Ned

Also Ned will recognize a capital gain for 70,000 when performing the transfer of the property. As his adjustedbasis is 30,000 while the property value is 100,000

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Under which set of circumstances would it not be appropriate to assume the value the noncontrolling shares is the same as the co
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Answer:

The correct answer is C

Explanation:

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Under the situation where the active prices for the shares are not acquired by the acquirer states a different value, it is not appropriate to assume the value of the non-controlling shares same as of the controlling shares.

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3 years ago
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $22, computed as fol
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Answer:

$ 2 per unit on average

Explanation:

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First step is to calculate the Relevant cost of making

Relevant cost of making = 9 + 7 + 1 + ( 5 * 80 % ) Relevant cost of making= $ 21

Now let calculate the Financial advantage of buying

Financial advantage of buying = ( 21 - 19 )

Financial advantage of buying= $ 2 per unit on average

Therefore the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:$ 2 per unit on average

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2 years ago
The economy begins in equilibrium at point E, representing the real interest rate r1 at which saving S1 equals desired investmen
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Answer:

The new equilibrium combination will be at increases I1 to I2, S1 to S2, and r1 to r2.

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Saving or national saving of an economy is amount  of national income or gross domestic product (GPD) that is not spent by the government. Using a simple example of a closed economy, i.e. an economy with no foreign trade in terms and imports, this statement can be mathematically as follows:

Y = C + I + G .......................................... (1)

Where,

Y denotes national income (GDP), C denotes consumption, I denotes Investment, and G denotes government spending.

To get investment, equation (1) can be rewritten by making I the subject of the formula as follows:

I = Y - C - G ......................................... (2)

In economics, saving (S) is always equal to investment (I). Therefore, equation (2) can be rewritten by equating it with I as follows:

I = Y - C - G = S

I = S

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I1 = S1 ................................................................. (3)

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Since saving of an economy is amount  of national income or GDP that is not spent by the government, a cuts in the government spending will cause saving to rise, i..e. to S2. Since saving and Investment is always equal to investment, Investment will also rise, i.e. to S2. Increase in I1 to I2 and also in S1 to S2, will cause the real interest rate to rise to r2 at E2 which is the new equilibrium combination of real interest rate, saving, and investment

Therefore, the new equilibrium combination of real interest rate, saving, and investment if the government cuts spending, holding other factors constant, will be at increases in I1 to I2, S1 to S2, and r1 to r2.

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Fear-based marketing is common these days which attract many users.

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I have actually experienced that once or twice, people send you messages through email or on different social media platforms. The ones that state “If you do not send this to 20 individuals you will die or will go through some misfortune incident. This is a common example of fear-based marketing these  days, and people or users actually buy it.

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The fundamental philosophy behind Everyday Low Pricing exists to decrease investment in promotion and transfer part of the savings to lower price.

<h3>What is Everyday Low Pricing?</h3>

Everyday Low Price (EDLP) is a pricing technique employed by merchants that guarantees customers the lowest prices in-store without the need to apply a coupon, wait for a sales event, or take any other steps to obtain an acceptable price on the goods they purchase. There are numerous companies that use an everyday low pricing strategy, including Wal-Mart, Amazon, Procter & Gamble, Winn-Dixie, and Trade Joe's. A survey indicates that 26% of American retailers use EDLP and 74% use high-low promotions.

You can reduce demand swings, prevent sales promotions, and improve your demand forecasting processes by using an everyday low pricing strategy. You can lower the price of your products using a cheap pricing plan to draw in more customers and boost sales.

Hence, The fundamental philosophy behind Everyday Low Pricing exists to decrease investment in promotion and transfer part of the savings to lower price.

To learn more about Everyday Low Pricing refer to:

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