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spayn [35]
3 years ago
9

Pursuant to a plan of reorganization adopted in the current year, Summit Corporation exchanged 1,000 shares of its common stock

and paid $40,000 cash for Hansen Corporation's assets with an adjusted basis of $200,000 (fair market value of $300,000) Hansén Corporation was liquidated shortly after the exchange, with its shareholders receiving the Summit stock and cash. The 1,000 shares of Summit common stock had a fair market value of $260,000 on the date of the exchange. What is the basis to Summit of the assets acquired in the exchange? A. $200.000 B. $240,000 C. $260,000 D. $300.000
Business
1 answer:
Tomtit [17]3 years ago
8 0

Answer:

A. $200.000

Explanation:

No gain or loss is recognized by the target corporation in the case of liquidation of target corporation or in case of distribution of stock and cash by it.

This is true even if cash or boot property is received by the target corporation. Hence, the basis is equal to the carryover to the acquiring corporation.  Summit has a carryover basis in the assets of Hansen company as Hansen company liquidated and distributed the cash and stock to the shareholder.

Therefore, The Basis to Summit of the assets acquired in the exchange = $200000

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Answer:

Freight-absorption

Explanation:

Based on the information provided within the question it can be said that the Texas Granite Company in Dallas should use Freight-absorption pricing in this situation. This is a pricing strategy in which the seller takes responsibility for all the freight charges that the company incurs in order to attract the amount of business that they hope to achieve. Since company's that are looking to buy see 0 freight charges it becomes a deal since they are saving money as opposed to buying from another company that charges the freight charges to the buyer.

6 0
2 years ago
Goals and objectives should be set ________.Multiple Choiceat the beginning of marketing planningat the end of the situation ana
storchak [24]

Answer:

Option D. After completion of market research, situation analysis, and competitor analysis

Explanation:

The reason is that the company always sets objectives and goals when it analyzes the business environment, the way competitor would react, product demand, etc and all these things come from market research, situation analysis, competitor analysis, position analysis, capability analysis, etc. This gives a clear picture where the organization must head towards. So after completion of these analysis and research, company is able to set goals.

Always remember that the company sets its goals before marketing planning (Option A) and after situation analysis (Option B) because it helps define what number of sales we need which formulates the marketing planning.

Option C is incorrect because strategies are set after the objectives and goals are set because the strategies are always alligned with the objectives and goals.

Option E is incorrect because Goals and Objectives are set always after the SWOT and PESTLE analysis not during these studies.

Here the only only option with broader meaning is option D which also includes the Option A and Option B.

3 0
3 years ago
________ is one of the solution to the agency problem in publiclyminus−held corporations.
Ber [7]

A solution that will help in the agency problem in terms of publiclyminus – held corporations is by through having bonuses in the company or organization that will be based on primarily the short term results that they have acquired in the company.

3 0
3 years ago
You are tasked with generating twice the amount of qualified leads your company generated last quarter. With your company’s bott
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Answer:

b. You could increase the chances of your current traffic choosing to convert and move down your funnel

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This has the ability over time to significantly lower the cost of acquiring a customer and to have a positive impact on your return on investment.

5 0
3 years ago
If real GDP per capita measured in 2009 dollars was​ $6,000 in 1950 and​ $48,000 in​ 2018, we would say that in​ 2018, the avera
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Answer:

The correct answer is (B)

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6000$ * 8 =48000$

An average American could buy 8 times more than the average American in 1950.

4 0
3 years ago
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