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forsale [732]
3 years ago
12

In a transaction that qualifies under Section 351, Buster transfers an asset with a basis of $50,000 and a fair market value of

$80,000 to Bronco, Inc. in exchange for Bronco common stock. The asset is encumbered by a $75,000 liability, which Bronco assumes. The liability was incurred many years ago to acquire the asset being transferred. Buster owns 100% of Bronco, Inc. Buster must recognize a gain on this transaction of:
Business
2 answers:
AVprozaik [17]3 years ago
4 0

Answer:

$0

Explanation:

The basis for a Section 351 transfer = fair market value of the property - assumed liabilities = $80,000 - $75,000 = $5,000

Since Buster controls Bronco Corporation (he owns 100%) and he exchanged the property for common stock, no gain or loss should be recognized, neither by Buster or the corporation. All that must be recognized is the new basis for the asset ($5,000).

Aneli [31]3 years ago
4 0

Answer:

$0

Explanation:

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Why do we have a graduated income tax?​
lina2011 [118]
Supporters of the progressive system claim that higher salaries enable affluent people to pay higher taxes and that this is the fairest system because it lessens the tax burden of the poor. ... Taxes do not discourage high earners from earning more, and the low tax rate encourages the poor to strive to earn more.
7 0
3 years ago
Sheila sells land to Elane, her sister, for the fair market value of $40,000. Six months later when the land is worth $45,000, E
77julia77 [94]

Sheila Recognized gain is \$16000

Jacob Recognized gain is \$8000

<u>Solution: </u>

Sheila’s Sale:

Amount noticed              \$40,000

Fixed basis                      (24,000)

                                       -------------

Gain                                 \$16,000

Recognized Gain = \$16,000

Jacob’s Sale:

Amount noticed              \$48,000

Fixed basis                      (40,000)

                                       -------------

Gain                                \$8,000                            

Recognized Gain = $8000

The $40,000 profit base of Jacob is same as the adjusted basis of Elane.

8 0
3 years ago
Any person who engages in the business of claiming, demanding, charging, receiving, collecting, or contracting for the collectio
tiny-mole [99]

Answer:

1. Apartment Information Vendor

Explanation:

<u><em>Those persons who involve in the business of claiming, charging, demanding,  receiving, etc information regarding location and availability of real property, including apartment housing, which may be rented,  leased, shared as a private residence or place of residence is known as </em></u><em>Apartment information </em>vendor. <em>It is the responsibility of licensees to get understand the law of Apartment Information Vendors License which is specified in section 190.1 of this Part and a completely executed separate escrow agreement as specified in subdivision (d) of this section.</em>

5 0
3 years ago
Bolka Corporation, a merchandising company, reported the following results for October: Sales $ 413,000 Cost of goods sold (all
melamori03 [73]

Answer:

Total contribution margin= $210,100

Explanation:

Giving the following information:

Sales $ 413,000

Cost of goods sold (all variable) $ 169,100

Total variable selling expense $ 20,700

Total variable administrative expense $ 13,100

<u>The contribution margin is the result of deducting from sales, all variable expenses:</u>

Total contribution margin= 413,000 - 169,100 - 20,700 - 13,100

Total contribution margin= $210,100

3 0
3 years ago
If the coupon interest rate is 4.375% for the first six months and changes to a rate equal to the 10-year Treasury bond rate plu
valina [46]

Answer:

If the coupon interest rate is 4.375% for the first six months and changes to a rate equal to the 10-year Treasury bond rate plus 1.3% thereafter, the bond is called a floating-rate bond.

True

The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called the INDENTURE.

When are issuers more likely to call an outstanding bond issue?

  • When interest rates are lower than they were when the bonds were issued

A bond is basically corporate debt, a lot of IUOs. Imagine that you need money to buy something and since you are in a rush you use your credit card that charges a 15% interest rate. Lets say you spent $5,000, and 15% of that is $750. After things settle down and you are not in a rush anymore, you realize that there are other lending options. So you go to your bank and find out that you can get a 2 year loan at a 6% interest rate. Any reasonable person would get the loan and pay the credit balance in order to save interest charges.

The same happens to corporations that borrow money, but if the interest rate decreases, they will be willing to refinance the old loan that charges a high interest rate with a new loan that charges a lower interest rate.

7 0
3 years ago
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