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Whitepunk [10]
3 years ago
7

Jack transferred a building that had an adjusted basis of $75,000 and a fair market value of $130,000 to R Corp. in exchange for

80% of R's only class of stock and a car with an adjusted basis to R of $25,000. The FMV of the stock at the time of the transfer was $100,000 and the car's FMV was $30,000. How much gain must R recognize on the exchange?
A. $30,000
B. $5,000
C. $100,000
D. $105,000
Business
1 answer:
schepotkina [342]3 years ago
4 0

Answer:

A. $30,000  

Explanation:

Jack realises gain of ( 100000 FMV of stock + 30000 FMV of car - 75000 Adjusted basis )

$ 55000

Jack recognises gain of $ 30000 i.e the FMV of the property ( car ) other than the stock received.

Therefore, The amount of gain that R must recognize on the exchange is $30,000.

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Tatiana [17]
I believe it is excise tax
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3 years ago
uncertainty avoidance (e.g., Greece, Portugal, and Uruguay) is associated with a need for structure, avoiding differences, and v
hoa [83]

Answer:

B. Higher, lower

Explanation:

Uncertainty  avoidance refers to how tolerant is the society in respect to ambiguity and unpredictable things. High uncertainty avoidance cultures don't like uncertainty and try to control this through laws and rules. Low uncertainty avoidance cultures feel comfortable with uncertainty and people tend to be tolerant to changes and have few rules.

According to that, the answer is that higher uncertainty avoidance (e.g., Greece, Portugal, and Uruguay) is associated with a need for structure, avoiding differences, and very formal business conduct governed by many rules, whereas a lower uncertainty avoidance (e.g., Singapore, Jamaica, and Hong Kong) is characterized by an informal business culture, acceptance of risk, and more concern with long term strategy and performance than with daily events.

4 0
3 years ago
Mondale Winery depreciates its equipment using the group method. The cost of equipment purchased in 2021 totaled $565,000. The e
beks73 [17]

Answer:

$90,400

Explanation:

Mondale Winery depreciates it's equipment by making use of the group method.

The cost of equipment that was purchased in 2021 totaled $565,000

The residual value of the equipment was $54,000

The group depreciation rate is 16%

= 16/100

= 0.16

Therefore, the annual depreciation can be calculated as follows

Annual depreciation= Cost of equipment × Group depreciation rate

= $565,000×0.16

= $90,400

Hence the annual depreciation for the group is $90,400

4 0
3 years ago
DHL express deals with :
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Answer:

DHL express deals with:

d)import and export good

4 0
3 years ago
The comparative balance sheets for Lowery Company show these changes in noncash current asset accounts: accounts receivable decr
alukav5142 [94]

Answer:

$198,000

Explanation:

The computation of the net cash provided by operating activities by using the indirect method is presented below:

Cash flow from operating activities

Net income $186,000

Add: Decrease in account receivable $80,000

Less: Increase in prepaid expense -$28,000

Less: Increase in inventories -$40,000

Net cash provided by operating activities    $198,000

3 0
3 years ago
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