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Galina-37 [17]
3 years ago
5

Perry Partnership distributed cash of $15,000 and a parcel of land in a liquidating distribution to Gupta, a partner. The land h

ad a fair market value of $50,000 and an inside basis of $52,000 at the time of the distribution. Gupta's outside basis in Perry just prior to the distribution was $70,000. What is Gupta's resulting basis in the land?
a. $50,000

b. $55,000

c. $53,000

d. $52,000
Business
1 answer:
Pani-rosa [81]3 years ago
4 0

Answer:

option (b) $55,000

Explanation:

Data provided in the question:

Cash distributed = $15,000

Fair market value of the land = $50,000

Inside basis at the time of the distribution = $52,000

Gupta's outside basis = $70,000

Now,

Gupta's Outside basis = Cash + Basis in land

or

$70,000 = $15,000 + Basis in land

or

Basis in land = $70,000 - $15,000

or

Basis in land = $55,000

Hence,

The answer is option (b) $55,000

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New Business is just being formed by 10 investors, each of whom will own 10% of the business. The firm is expected to earn $500,
Triss [41]

Answer:

additional income is $11050  if the business is organized as a partnership rather than as a corporation

Explanation:

given data

investors = 10

own = 10%

earn =  $500000

corporate tax rate = 34%

personal tax rate = 35 %

to find out

How much additional spendable income

solution

we find here first income if formed as corporation in hand  that is

income if formed as corporation = earn × own ( 1 -  corporate tax ) × ( 1 - personal tax )

income if formed as corporation = 500000 × 10% ( 1 - 34% ) × ( 1 - 35% )

income if formed as corporation =$21450

and

income will be taxable if form partnership that is

income if formed partnership = earn × own ( 1 - personal tax )

put here value

income if formed partnership = 500000 × 10% ( 1 - 35% )

income if formed partnership = $32500

so

additional income is $32500 - $21450

additional income is $11050

4 0
3 years ago
Ruiz Engineering Contractors incurred service salaries and wages of $37,700 ($27,300 direct and $10,400 indirect) on an engineer
olganol [36]

Explanation:

hope I'll help you mark me as brainliest

5 0
2 years ago
Hermansen Corporation produces large commercial doors for warehouses and other facilities. In the most recent month, the company
timurjin [86]

Answer:

Variable overhead efficiency variance =  $2,212unfavorable

Explanation:

variable overhead efficiency variance: Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.

Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance  

                                                                                       Hours

5,400 units should have taken (5,400×3.8 hours)   20,520

but did take                                                                <u> 20,800</u>

Labour hours variance                                                280 unfavorable

Standard variable overhead rate                         ×     <u>$ 7.90</u> per hour

Variable overhead efficiency variance                     $2,212  unfavorable

Variable overhead efficiency variance =  $2,212unfavorable

8 0
3 years ago
You purchased 1,000 shares of stock in Natural Chicken Wings, Inc., at a price of $43.37 per share. Since you purchased the stoc
leonid [27]

Answer:

9.68%

Explanation:

Percent Return on Investment is calculated as Net Profit / Cost of Investment x 100

Net Profit= $46,620 (1,000 x $46.62 per share) + $950 (1,000 x $.95 per share) - $43,370 (1,000 x $43.37 per share) = $4,200

Cost of Investment= $43,370 (1,000 x $43.37 per share)

Percent Return on Investment=  $4,200 / $43,370 x 100 = 9.68%

4 0
2 years ago
If an application asks you to indicate a salary range, you should _____.
dangina [55]

Answer:

D

Explanation:

4 0
3 years ago
Read 2 more answers
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