Answer:
The company records the investment by the entry:
(D) debit Cash and credit Owner's Equity
Explanation:
Mr. Decker invested $20,000 in cash in his new business. He is the Owner of the company.
In the case, the company that he invested received cash from Mr. Decker.
The company will record the increasing in cash and increasing in Owner's Equity account by the journal entry:
Debit Cash $20,000
Credit Owner's Equity $20,000
Answer: 6 months
Explanation:
The Securities and Exchange Commission (SEC) of the United States uses Rule 144 to control and regulate sales transactions involving restricted, unregistered, and control securities.
When an unaffiliated investor to a company whose stock falls under Rule 144 wishes to sell them, they are indeed not bound by volume limitations if they sell after the holding period requirement of 6 months has been met.
This means that from the day the unaffiliated investor purchases and fully pays for the shares, they cannot sell them until 6 months from that very day have elapsed.
Answer:
Answer is $15,000
$6,000 share of ordinary income plus $9,000 gain for a $50,000 distribution in excess of her $41,000 stock basis.
