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ruslelena [56]
4 years ago
14

Tom transfers a building that originally cost $40,000 to Paul Corp. in exchange for 100% of the corporation's stock. the adjuste

d basis of the building is $20,000. at the time of the transfer, the building is subject to a liability of $30,000 (which has no business purpose to it) and it worth $60,000. how much gain must Tom recognize?
a. 0

b. 10,000

c. 30,000

d. 40,000
Business
1 answer:
Korolek [52]4 years ago
4 0

Answer:

Gain recognized by Tom is $10000

So option (b) will be correct answer

Explanation :

We have given liability on bulding assumed by Paul Corp = $30,000

Tom's adjusted basis in the building = $20,000

Since the liability assumed by Paul Corp on the building is greater than Tom's adjusted basis, Tom must recognize gain equal to the difference between the liability on the building and his adjusted basis.

So gain recognized by Tom = $30,000 - $20,000 = $10,000

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Electronic Superstore's inventory increases during the year by $3.8 million, and its accounts payable to suppliers increases by
Mrrafil [7]

Answer:

$31 million

Explanation:

The computation of the amount of cash paid to suppliers of merchandise during the reporting period is shown below:

= Costs of goods sold + increase in inventory - increase in accounts payable

= $33 million + $3.8 million - $5.8 million

= $31 million

The Costs of goods sold + increase in inventory is also known as purchase of inventory

3 0
3 years ago
You've got your budget, credit history and saving in order. whats your next step before shopping for a home?
Softa [21]

Answer:

The correct answer is letter "A": Shop for a mortgage.

Explanation:

After setting a budget and starting a housing fund, checking your credit report and scores, and accruing a certain amount of money to make possible acquiring a house, the next step implies being pre-approved by a mortgage lender. This will give you an idea of how much money a bank might approve to lend you to purchase the property. Thus, after this and finding a Real Estate agent, <em>you can start checking what houses are available for purchase according to what you can afford.</em>

7 0
3 years ago
If an investment is producing a return that is equal to the required return, the investment's net present value will be:
harina [27]
The net present value would be zero.

Hope this helped! :)
4 0
3 years ago
During the 1990s, several airlines were on the brink of bankruptcy. These same airlines were giving away millions of dollars in
lara [203]

Answer:

Assuming that the elimination of frequent-flyer programs would have enabled the airlines to earn higher profits and remain in business, then it would be a purely good idea for the airlines to eliminate their frequent-flyer programs.

The big question is, how much did the frequent-flyer programs cost the airlines?  Would the cost-savings be sufficient to eliminate their bankruptcies?  It is a known-fact that the airlines that create such programs always recover the program costs by charging higher fares.

Explanation:

The issue of airlines going bankruptcy does not seem to stem from customer-loyalty programs like the frequent-flyer programs.  The root cause lies in operational and other costs that airline managements have not been able to control.

4 0
3 years ago
Paulina Lesky is 27 years old and has accumulated $7,500 in her self-directed defined contribution pension plan. Each year she c
zimovet [89]

Answer:

The answer is "Option D".

Explanation:

The amount accrued in the pension system until now = 7500

Danger or security account proportion = 20 \%

The percentage of the amount kept in a safe account (PV) = 7500\times 20\% = 1500\%

Number of investment years owned by (n)=63-27=36

Risk-free return rate I = 3\%

Combined total amount up to age 63 (formula for the current value) = Present \ value\times (1+i)^n

=1500\times (1+3\%)^{36}\\\\=4347.417492

The contribution is \$2000 a year and the employer corresponds with the same amount for the pension plan.

Total annual contribution = 2000+2000 = 4000

Risk-free or healthy account proportion= 20\%

Amount invested annually (P) = 4000\times 20\% = 800 \ (Risk \ free)

Annual deposit amount (n) for years=63-27 =36

Returns free of risk I = 3\%

An cumulative sum due to an annuity= P\times \frac{(((1+i)^n)-1)}{i}

=800\times \frac{(((1+3\%)^{36})-1)}{3\%}\\\\=50620.75541

Total amount accumulated in safe account = FV\  of \ PV + FV of annuity

=4347.417492+50620.75541\\\\=54968.1729\\\\=54968

6 0
3 years ago
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