Answer:
elect not to write the recommendation.
Explanation:
A job recommendation is a way of vouching for a person's behaviour, honesty, and qualifications to perform a job.
On important step before giving recommendations is to think carefully if you know and trust the person sufficiently to vouch for him.
If a recommendation is written about person and he fails to perform well, the person that wrote the recommendation will lose credibility and his career may be adversely affected.
In this instance since there are serious concerns about the qualifications of a job candidate who has asked you for a written recommendation, elect not to write the recommendation
Answer:
The surrender cash value is used for the extended term option.
Explanation:
This is where the nonforfeiture clause comes to policyholders aid. The nonforfeiture clause allows the policy holder who has not made payment of premiums within the grace period to be able to get the cash value of his whole life policy(with already paid premiums), recovered either by cash or extended term option or any other agreement made prior. The cash value of his whole life policy could be applied to the extended term option, allowing the policy holder to get a term insurance policy worth the value of his surrender whole life policy minus any loans against it.
<u>Solution and Explanantion:</u>
<u>Determining the gain or loss recognized by M corporation
</u>
Loss to be recognised = Market Value – Purchase Value
= $75000
Thus, loss to be recognised by the “M” corporation is $75000
<u>Determining the gain or loss of A:
</u>
![=[(\$ 575000-\$ 425000) * 40 \%]-\$ 100000](https://tex.z-dn.net/?f=%3D%5B%28%5C%24%20575000-%5C%24%20425000%29%20%2A%2040%20%5C%25%5D-%5C%24%20100000)
= ($40000)
Thus, loss to be recognised by A is $40000
Answer:
C. The transaction results in $10,000 of ordinary income for Kenya.
Explanation:
Kenya has received 200 newly issued shares from Peach Corporation which worth $50,000 in exchange for inventory which valued at $40,000. There is ordinary income of $10,000 to Kenya. This income is not classified as capital gains because this income is not received by selling the shares.
The correct answer is C, transaction will result in $10,000 of ordinary income for Kenya.
