Answer: Esther does not recognize any gain or loss on the distribution and her remaining basis in EE is $15,000
Explanation:
Base on the scenario been described in the question, repayment of liabilities is treated as a cash distribution. Esther's share of the debt reduction is Since this amount is lower than her outside basis ($40,000) she does not recognize a gain or loss.reduces her outside basis by the $25,000, which leaves her $15,000 of outside basis in EE afterthe debt repayment.
Answer:
Specialty line
Explanation: Specialty kine is a business term which tries to describe the line of product or services of which a person or a business entity is good at. This can be in the sale of Consumer goods,or in the distribution of a particular product or the marketing of a give set of product etc.
SIMPSON MICRO HAS A SPECIALTY LINE THAT HAS TO DO WITH THE SALE AND HANDLING OF COMPUTER SOFTWARES, Specialty lines help to allow the product line where it's.business have a good experience.
Answer:
D. $45,000
Explanation:
The computation of the contribution margin for the Orlando store is
= Total sales × contribution margin percentage - Gainesville sales × contribution margin percentage
= $250,000 × 32% - $100,000 × 35%
= $80,000 - $35,000
= $45,000
Contribution margin is come from deducting Gainesville contribution margin from the total contribution margin
