Answer:
Oak Corp distributed $15,000 to Glover and we are required to compute the amount and character of gain Glover must recognize under the scenarios as stated in the question:
a. No gain will be recognized by Glover. Rather, his stock basis will be reduced from $35,000 to $20,000 ($35,000 basis - $15,000 cash distribution). So, gain recognized by him is $0.
b. Long term capital gain of $7,000 ($15,000 - $8,000) will be recognized by Glover and his stock basis will be reduced from $8,000 to $0.
c. The entire $15,000 ($15,000-$0) will be recognized as long term capital gain by Glover and his stock basis will remain $0.
Answer:
The rate of change in 6 months is 14.87%
Explanation:
Let a be the amount that the money is multiplied in one month. We know that in 30 months it is multiplied by 2, so if we power a by 30 wew obtain 2:
a³⁰ = 2
Thus, 2 = a³⁰ = a⁶*⁵ = (a⁶)⁵
(here we use the propiety a^bc = (a^b)^c = (a^c)^b)
We can conclude that a⁶ = 2^(1/5) = 1.1487
The rate in 6 months is (1.1487-1)*100 = 14.87%
Answer:
B. Debit Notes Receivable $4,000; credit Sales $4,000
Explanation:
Notice we are asked for hthe entry in the supplier's book:
The supplier will take the note thus, it will ahve a note receivable as in the future it expect to receive a cashflow.
The interest will be accrued over time, so are ignored for the moment
The supplier also has to recognize the amount of sales revenue earned with the sale.
Answer:
65,000 units
Explanation:
Let the number of units be sold = x
Operating Income= Sales- Variable cost – Fixed Cost
Operating Income = 40x - 24x - 560,000
Operating Income = 16x - 560,000
Return on Investment = Operating Income / Net Operating Assets
16% = (16x - 560,000 )/ 3,000,000
480,000 = 16x - 560,000
16x = 480,000 + 560,000
16x = 1,040,000
x = 65,000 units
Answer:
B
Explanation:
It is the correct answer and outsourcing is were another company hires a company to essentially do their job. But done by a different company.
