1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Citrus2011 [14]
2 years ago
13

Brittany Callihan sold stock (basis of $184,000) to her son, Ridge, for $160,000, the fair market value. a. What are the tax con

sequences to Brittany? b. What are the tax consequences to Ridge if he later sells the stock for $190,000? For $152,000? For $174,000?
Business
1 answer:
ycow [4]2 years ago
6 0

Answer:

(a) Brittany loss due to taxes = Basis - fair market value

                                                = $184,000 - $160,000

                                                = $24,000

Therefore, Brittany will have a $24,000 loss that is not deductible.

(b) Tax consequences to Ridge if he later sells the stock for $190,000 are as follows:

  • Realized gain = $30,000 and Recognized as a gain for tax payers = $6,000
  • Realized and recognized loss = $8,000
  • There is no recognized gain for Ridge and unrecognized loss of $10,000. It is permanent lost.
You might be interested in
Exchange rate is currently $1.25 US per 1 Euro. Interest rate is 2% in the US and 1% in Eurozone. A bank is long a futures contr
kolbaska11 [484]

Answer:

Invest $990,099 U.S

Explanation:

The interest rate is 2% for US dollars and 1% for euro

The exchange rate is 1.25 dollars to a euro.

To calculate future exchange rate:

1.25dollars (1+exchange rate of us/1+ exchange rate of euro)

= 1.25(1.02/1.01)

= 1.2625

Approximately 1.26

After a year they will be getting .26 million dollars.

They need to invest something close to this amount 1.2/1.02

Therefore option b is the best answer

8 0
3 years ago
Imitability of a resource can occur through _?
stich3 [128]

Answer:

economic depletion

Explanation:

4 0
3 years ago
Read 2 more answers
In the ________ component of SCM, supply chain managers must create a responsive and flexible network to support customers who h
Anastaziya [24]

Answer:

Return

Explanation:

Supply chain management (SCM) is the management of interconnected activities involved in movement and storage of raw material, work in progress and finished goods. The process is used to check if supply chain activites are working smoothly or not, also, is it cost effective or not?. SCM follow basic five component:

  1. Plan
  2. Develop
  3. make
  4. Deliver
  5. Return.

Return is a stage where supply chain managers must create a responsive and flexible network to support customers who have problems with delivered products.

8 0
3 years ago
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $82,000 and $4,500, r
Cerrena [4.2K]

Answer: $10,700

Explanation:

The Uncollectible Account Expense is the Accounting Adjustment made when a Receivable defaults on their debt and it can be calculated using the following formula,

= Uncollectible Amount written off + Closing Balance - Opening Balance.

Now the balances are as follows,

Opening Balance for Year 2 = 4,500

Closing Balance for Year 2 = 6,800

Uncollectible Amount written off during Year 2 = 8,400

Calculating therefore,

= 6,800 + 8,400 - 4,500

= $10,700

Allegheny will report $10,700 as Uncollectible Accounts Expense for Year 2.

3 0
3 years ago
What is a credit limit? AThe required payment to your credit card company. BHow many credit cards you can own. CThe amount of in
Zolol [24]
B how many credit cards you can own
7 0
3 years ago
Other questions:
  • Wesimann Co. issued 13-year bonds a year ago at a coupon rate of 8.5 percent. The bonds make semiannual payments and have a par
    9·2 answers
  • Q 9.1: When can interest be included in the acquisition cost of a plant asset?A : during the construction period of a self-const
    13·2 answers
  • What is corporate image or corporate identity
    13·1 answer
  • There are different standards for due process in civil and criminal cases. True or False
    6·2 answers
  • Select all that apply What is the difference between an adjusted trial balance and an unadjusted trial balance? (Check all that
    10·1 answer
  • Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $489,000, va
    9·1 answer
  • The theory of _____, developed by Michael Porter, focuses on the importance of country factors, in addition to factor endowments
    15·1 answer
  • Your company uses social media for marketing purposes. How does your company benefit by communicating with customers through soc
    15·2 answers
  • There is no such thing as "the law" in that law comes from many different sources.
    7·1 answer
  • Manufacturing activities consist of materials, production, and sales activities. The materials activity consists of the purchase
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!