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love history [14]
3 years ago
10

Montclair Corporation had current and accumulated E&P of $500,000 at December 31, 20X3. On December 31, the company made a d

istribution of land to its sole shareholder, Molly Pitcher. The land's fair market value was $200,000 and its tax and E&P basis to Montclair was $50,000. Molly assumed a liability of $25,000 attached to the land. The tax consequences of the distribution to Montclair in 20X3 would be:
Business
1 answer:
siniylev [52]3 years ago
3 0

Answer:

The tax consequences of the distribution to Montclair in 20X3 would be a $150,000 gain recognized and a reduction in E&P of $175,000.

Explanation:

The distribution company distinguishes profit on the distribution, which is included in E&P netting of tax and decreases E&P by rhe lands fair market value fewer the liability believed by the shareholders.

Therefore, The tax consequences of the distribution to Montclair in 20X3 would be a $150,000 gain recognized and a reduction in E&P of $175,000.

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Which of these is an example of feedback? C. Asking your supervisor to repeat a set of instructions.
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Your friend is starting a company and wants to identify the job their product will do for people. What advice would you give the
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A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
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Total Period cost for the month= $427,400.00

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5 0
3 years ago
On December 31, 2019, Spearmint, Inc., issued $450,000 of 9 percent, 3-year bonds for cash of $461,795. After recording the rela
cluponka [151]

Answer:

Interest expense    18,284.17  debit

Premium on BP        1,965.83 debit

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Explanation:

procceds 461,795

face value 450,000

premium on bonds payable 11,795

As the cash received exceed the face value then, the bonds were isued at premium.

This will be amortized over the bonds life

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The will post:

the cash disbursement in favor of the bondholder:

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amortization             (1,965.83)

interest expense:    18.284,17‬

3 0
2 years ago
Read 2 more answers
LLY Corporation is planning to issue a $1,000 face value bond with a maturity of 30 years. The annual coupon rate is expected to
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Answer:

$739.72 ≈  739.72

Explanation:

we can use an excel spreadsheet and the present value function to calculate the expected price of each bond ⇒ =PV(rate,nper,pmt,fv,[type])

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6 0
3 years ago
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