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kari74 [83]
3 years ago
3

In 2017, Aaron transferred property worth $75,000 and services worth $25,000 to the BJ Corporation. In exchange, he received sto

ck in BJ valued at $100,000. Immediately after the exchange, Aaron owned 80% of the only class of outstanding stock. Which of the following is true with regard to Aaron’s treatment of this transaction in 2017? A.Ordinary income of $25,000. B. Short-term capital gain of $25,000. C. Short-term capital gain of $100,000. D. No income until the stock is sold.
Business
1 answer:
UNO [17]3 years ago
6 0

Answer:

A.Ordinary income of $25,000

Shares BJ 100,000

Property 75,000

Services fees 25,000

Explanation:

We adquire the company by performing this services, we can recognize them.

You must recognize ordinary income of $25,000 for services rendered to the corporation.

BJ will consider the 25,000 as compensation paid.

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A recent Small Business Administration study found that commercial banks provide between ________ percent of the credit availabl
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Answer:

64%

Explanation:

Commercial banks have been found to provide most of the credit needs of small businesses. So small business owners are more likely to get a loan from a commercial bank close to them.

Commercial banks however tend to be reluctant when the economy is stagnant. Mostly small businesses in an economy that is slow have challenges repaying loans collected.

However funds have been made available for small business and are made available primarily through commercial banks

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4 years ago
Which of the following is not a question business executives will ask as part of their strategic planning?
love history [14]
I’d say “What do we do?”
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3 years ago
How do the Iowa Caucuses work?
kenny6666 [7]
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3 years ago
Determine whether each of the following events causes a shift of a curve or a movement along a curve in the short run. Indicate
Over [174]

Answer:

A. The Supply Curve shifts Right.

As American Producers are paying less in dollar terms, their costs of production will reduce. The reduction in Cost of Production will spur producers to produce even more because inputs are cheaper and more will be bought and processed and so the Supply will increase and shift the Supply Curve left.  

B. Aggregate Demand Curve shifts Right.

As a result of more money being in the Economy, more people will want to lend out the excess cash they have to earn some interest on it. This will reduce the cost of borrowing and will therefore spur people to borrow more to be able to afford things they want. With the people having more money, they will buy more things therefore upping Demand. The Demand Curve will shift to the Right as a result.

C. Supply Curve shifts Left

Wages are an input into Production. Should they increase that would mean that the cost of Production has risen as well for Producers. They will respond by reducing the amount of goods they produce so as to maintain Profitability and reduce those costs. This will cut supply and shift the Supply Curve to the left.

D. Movement along Short Run Aggregate Demand Curve

Aggregate Demand Curve is constructed based on the demand of the Economy at different prices levels. Should the Price Level decrease it is simply a movement along the Aggregate Demand Curve.

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3 years ago
Which of these is an effective way of guiding, modifying, and disciplining a child?
bezimeni [28]
B.
Because the caregiver has set both clear and consistent rules, which allows the child to know what is expected of them, and allows the child to adjust their behavior to fit the caregivers expectations. Hope this helps!
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4 years ago
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