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ruslelena [56]
3 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]3 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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Bonita is considering establishing a trust for her mother that will pay out $1,000 each month. The trust department at a local b
monitta

Answer:

The Dependent or the Beneficiary collect $1000 every month pay income tax

Explanation:

Bonita is the policyholder that pay premium .

The mother is the dependent and the beneficiary ,who takes the trust monthly

The bank is the trustee that  disburse the trust fund to the beneficiary month .

7 0
3 years ago
Variations in each product a firm markets in its mix are referred to as the _____ of its product mix.
Allisa [31]
Answer:  "depth" .
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3 0
3 years ago
The concept of right-sizing euphemistically refers to ________.
notsponge [240]
Right-sizing is a euphemism for downsizing, firing, and is synonymous with reorganizing business. It is usually intended to cut costs of a company by firing people, but it is usually presented as a beneficial and a good thing.
4 0
3 years ago
Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for Oc
Viktor [21]

Answer:

Labor Efficiency Variance=268 Unfavorable

Labor Rate Variance= $ 150 Favorable

Total Direct Labor Cost Variance= $ 118

Work In Process $ 6432 debit

Explanation:

Glacier Bicycle Company

Quantity of direct labor used 500 hrs.

Actual rate for direct labor $13.10 per hr.

Standard direct labor per bicycle 2 hrs.

Standard rate for direct labor $13.40 per hr

The labor efficiency variance= (Standard Hours allowed  * standard labor Rate )- (  Actual Hours  * standard labor Rate )

Labor Efficiency Variance= (SH* SR)- (AH*SR)

Labor Efficiency Variance= ( 2* 240 *13.4) - (500* 13.4)

Labor Efficiency Variance= ( 480*13.4) - (500* 13.4)

Labor Efficiency Variance= $ 6432- $ 6700= 268 Unfavorable

Labor Rate Variance= (actual hours * actual rate) - (actual hours* standard rate)

Labor Rate Variance= ( 500 *13.1) - (500*13.4)= 6550-6700= $ 150 Favorable

Total Direct Labor Cost Variance=  Labor Efficiency Variance + Labor Rate Variance

Total Direct Labor Cost Variance= 268 Unfavorable +$ 150 Favorable

Total Direct Labor Cost Variance= $ 118

Work In Process $ 6432 debit

Labor Efficiency Variance  268 Unfavorable debit

Labor Rate Variance$ 150 Favorable credit

Accrued Payroll $ 6550 credit

5 0
3 years ago
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laila [671]

Answer:

B) chapter 12

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Chapter 12 bankruptcy is a special reorganization bankruptcy procedure that applies for family farmers and fisherman only. It is very similar to chapter 13  bankruptcy but provides several additional benefits aimed at helping the farmers and fishermen restructure their debts to avoid foreclosures or liquidations.

3 0
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