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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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A dozen eggs cost $0.96 in December 2000 and $2.75 in December 2015. The average wage for workers in private industries was $14.
Tom [10]

Answer:

By 186% the price of a dozen eggs rise.

Explanation:

Given that,

Cost in December 2000 = $0.96

Cost in December 2015 = $2.75

Average wage for December 2000 = $14.28 per hour

Average wage for December 2015 = $21.26

By considering these information, we are able to calculate the increase price percentage of a dozen eggs. The calculation is shown below:

= (December 2015 price - December 2000 price ) ÷ (December 2000 price) × 100

= ($2.75 - $0.96) ÷ ($0.96) × 100

= ($1.79) ÷ ($0.96) × 100

=  186%

Thus, by 186% the price of a dozen eggs rise.

4 0
3 years ago
The value-added method involves taking the cost of intermediate outputs (i.e., outputs that will, in turn, be used in the produc
Tanzania [10]

Answer:

the only difference is that the value added method adds up production in the economy as it is produced, and the standard method of counting only used the completed value at the end of the production chain.

Explanation:

The value added method in the production process aims to measure the value added at each stage of production considering intermediate products as input.

For example if plastic is produced in a plant and it is in turn used to produce plates. Value added at stage of plate production is the value of plates less cost of producing plastic.

The standard method counts only value of final goods and services.

Both methods give the same result because summation of value in the value added approach will be the same as the value at the end of the production chain (standard method).

8 0
3 years ago
Caldwell Co. uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $300,000 to $360,000.
VLD [36.1K]

Answer and Explanation:

The preparation of flexible budget is shown below:-

                                                  Budget           Actual      Difference F/U  

                                               $330,000        $330,000  

Variable expenses    

Sales commissions                 $16,500             $17,200      $700          U

                                          ($330,000 × 5%)

Advertising                              $13,200             $12,000      $1200        F

                                          ($330,000 × 4%)

Traveling                                  $23,100             $23,700      $600        U

                                          ($330,000 × 7%)

Delivery                                    $3,300              $2,400        $900         F

                                          ($330,000 × 1%)

Total variable expenses a   $56,100             $55,300      $800        F

Fixed expenses    

Sales salaries                         $40,000              $41,500     $1,500      U

Depreciation                           $10,000               $10,000      0          NA

Total fixed expenses b           $50,000             $51,500    $1,500      U

Total expenses (a+b)              $106,100             $106,800  $700        U

Therefore, if budget is more than actual then it will be favorable and if actual is more than budget then it will be unfavorable.

According to this the classification of every items is shown above.

8 0
3 years ago
Select three food manufacturers.
Helen [10]
Kraft, General Mills, Kellogg’s
3 0
3 years ago
Read 2 more answers
Suppose Abercrombie & Fitch sells clothing in a monopolistically competitive market and that a farmer sells oranges in a per
kirill [66]

Answer:

Please check the attached images for the required demand curves

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants  

When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero

If firms are earning negative economic profit, in the long run, firms leave the industry.  This drives economic profit to zero

in the long run, only normal profit is earned

7 0
2 years ago
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