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mrs_skeptik [129]
2 years ago
8

Melvin receives stock as a gift from his uncle. No gift tax is paid. The adjusted basis of the stock is $19,000 and the fair mar

ket value is $25,000. Melvin trades the stock for bonds with a fair market value of $22,000 and $3,000 cash. What is his recognized gain and the basis for the bonds?
Business
2 answers:
Karolina [17]2 years ago
4 0

Answer:

Recognized gain = $6000

Basis of the bond = $22,000

Explanation:

Given the following ;

Adjusted basis of stock = $19,000

After trading the stock for bond;

Market value of bond = $22,000

Cash received = $3000

Recognized gain = valuation after trading stock for bond - Adjusted basis of stock

Therefore,

Recognized gain = ($22,000+$3000) - $19,000 = $6000

Basis of a bond is simply the market value or quoted price of the bond.

Here, the market value of the bond received by trading his stock is $22,000

Therefore, the basis of the bond is $22,000

NARA [144]2 years ago
3 0

Answer:

a gain for 6,000 dollar will be recognized

the new bonds basis will be of 22,000

Explanation:

Total proceeds from the sale:

22,000 in bonds plus 3,000 cash for a total of 25,000

The basis of the bond gifted was 19,000

Therefore, there is a realzied gain on sale for the difference which is 6,000 dollars.

The new bonds are worth 22,000 therefore their basis will be of 2,,000 dollars

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Explanation:

  • In the above mentioned case the managers (c)who shipped the product knowing that it was contaminated where also punished .
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3 years ago
Craigmont Company's direct materials costs are $4,200,000, its direct labor costs total $8,080,000, and its factory overhead cos
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Answer:

$12,280,000.

Explanation:

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Total Prime cost = Direct material + Direct labor = $4,200,000 + $8,080,000 = $12,280,000

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3 years ago
What is the purpose of AH&LA ?
Kryger [21]
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5 0
3 years ago
Elly owns a small coffee shop. she has only one employee. one​ weekend, she decided to take a break from work. she is wondering
Rudiy27
<span>The answer to your question is 
</span>\boxed{\bf C.~backwards~induction}&#10;<span>

</span>
\bf Explanation:
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Wildhorse Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total
tangare [24]

Answer:

Variable cost per unit= $1.4 per unit

Explanation:

Giving the following information:

Miles Driven Total Cost Miles Driven Total Cost

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March: 8,550 $14,979

February: 7,490 $13,495

April: 8,195 $14,490

To calculate the variable cost under the high-low method, we need to use the following formula:

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Variable cost per unit= (14,979 - 13,495) / (8,550 - 7,490)

Variable cost per unit= $1.4 per unit

7 0
3 years ago
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