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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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katen-ka-za [31]

Answer:

Explanation:

The journal entries are shown below:

a. Cash A/c Dr $1,239,000     (5,900 seasons × $210)

          To Unearned basket ball tickets revenue $1,239,000

(Being the sale of the season tickets are recorded)

b. Unearned basket ball tickets revenue $103,250      ($1,239,000 ÷ 12)

               To basket ball tickets revenue $103,250    

(Being the revenue recognized)

7 0
3 years ago
Jake Fleming sells graphic card update kits for computers. Jake purchases these kits for $20 and sells about 250 kits a year. Ea
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Answer:

60 Kits

Explanation:

Cost price (C) = $20/Kit

Yearly se (D)  = 250 kit/year

Shipping cost / Ordering cost (Co) = $25

Holding cost (Ch) = $3.5/Kit-year

Economic order quantity = √2.D.Co / Ch

Economic order quantity = √2*250*25/3.5

Economic order quantity = √12500/3.5

Economic order quantity = √3571.4285

Economic order quantity = 59.7614305

Economic order quantity = 60 Kits

7 0
2 years ago
Suppose the market for tortillas is initially in equilibrium, but then the equilibrium wage rate and the equilibrium quantity of
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Answer:

The supply of tortillas decreased

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Since the coffee beans arrived on September 2 instead of on September 1, LaTisha's best defense would be breach of a legally binding contract by Marco. Marco failed without, any legal excuse, to deliver the products as promised. Marco violated the legal agreement between the two parties since he did not perform his obligation.



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For business owners to achieve their goals, certain laws guide their business dealings and transactions.
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Last time i checked that was true good luck 
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