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mrs_skeptik [129]
3 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]3 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]3 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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Answer:

The correct answer is: to start a business plan.

Explanation:

To begin with, if Jeffery is looking forward to start a new business and with that he needs to persuade lenders or investors then he must start a business plan with enough information and strategies that can show to those people the fact that the business has a solid background and more than that it will show also that Jeffery is a serious person and will compromise to pay all the lends he take. That is why, the preliminary step in beginning his new business will be to make a plan where he state all the information necessary to start.

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Easywriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. management recently finished analyzing the re
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a. 50 cents

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1.75 - ($50,000/40,000 units)

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b. $8750

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6 0
3 years ago
Devon, an accounts manager at a large electronics firm, does not have any direct international responsibilities; however, Devon
Nonamiya [84]

Answer:

Develop International management skills

Resolve commercial challenges. ...

Explanation:

Devon would most likely benefit from studying international business issues because it will help him:

1. Develop Management Skills: Devon might grow to a management position in an international company without having the required skills and knowledge on how to manage a multi-cultural business environment.

2. Resolve Commercial Challenges: Although Devon does not have international responsibilities, he might be appointed into a team or would be much more valued in the company if he proffers solution to commercial challenges. The ability to do so will be gained with a study in international business.

5 0
3 years ago
Match each situation with the term that best describes it. Use each term only once.
Dmitry [639]

Answer:

1. One of your subordinates only seems to respond to threats of punishment. What type of power should you use to motivate him?

h. <u>Persuasive power </u>

2. You manage a difficult subordinate who only cooperates when she feels that you have the formal authority to ask her to do something. What type of power should you use to motivate her?

b. <u>Legitimate power</u>

3. One of your subordinates looks up to you as a role model. What type of power should you use to motivate her?

a. <u>Personal power</u>

Explanation:

In any given situations there are different incidents that would require someone to apply different power in-order to manage the situation. This could be in form of motivation or deterrent method during the application of the power.

For example, in the case of the subordinate looking up to you as a role model, you should apply personal power in-order to motivate the person. the personal power will help you to build personal relationship between the subordinate and you.

7 0
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The best type of system for the order of the jewelry would be:

 

<span>1. </span>A customer chooses what he wants from the jewelry

<span>2. </span>He/she must check if the special jewels that he/she wanted are available for pre-order

<span>3. </span>Once the business agreement is done a transaction shall be followed in the making.

 

<span>Special orders should always be made to be pre-ordered, if the supplier has the item.</span>

6 0
3 years ago
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