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IceJOKER [234]
3 years ago
6

Jane and Walt form Yellow Corporation. Jane transfers equipment worth $950,000 (basis of $200,000) and cash of $50,000 to Yellow

Corporation for 50% of its stock. Walt transfers a building and land worth $1,050,000 (basis of $400,000) for 50% of Yellow's stock and $50,000 in cash.a.Jane recognizes no gain; Walt recognizes a gain of $50,000.b.Jane recognizes a gain of $50,000; Walt recognizes no gain.c.Neither Jane nor Walt recognizes gain.d.Jane recognizes a gain of $750,000; Walt recognizes a gain of $650,000.e.None of the above.
Business
1 answer:
Naddika [18.5K]3 years ago
4 0

Answer:

A) Jane recognizes no gain; Walt recognizes a gain of $50,000.

Explanation:

§ 351 allows individuals or businesses tax free transfers to controlled corporations. In other words, Jane and Walt can transfer assets to form Yellow Corporation without recognizing any gain or loss.

Since Walt received some money from this transaction, that must be considered a gain since it is not included under § 351.

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Jane works in the maintenance department, which supports the production department and the research department. Jane's wages are
valina [46]
<h2>Direct to the maintenance department</h2>

Explanation:

Jane here works only in the Maintenance department. The work that he does supports both Production as well as Research. We can calculate the expenses, only by associating the department of the employee.

So, the wages should be directly associated to the maintenance department only.

We cannot add one cost to multiple department and it is not the right approach of accounting system. So the below becomes invalid.

<em>Indirect to the production department Direct to the research department Direct to the production department Indirect to the research department</em>

3 0
3 years ago
Tore Company's records reveal the following information regarding its inventory. Beginning inventory was $100,000 at cost and 16
vodka [1.7K]

Answer:

$150,000

Explanation:

Ending inventory, the value of goods available for sale at the end of the accounting period, plays an important role in reporting the financial status of a company and can best be figured out using the equation,

Ending Inventory = Beginning Inventory + Net Purchases - Cost of Goods Sold (or COGS)

Beginning Inventory = $160,000 in retail

Net purchases = $500,000 in retail +$10,000 Markups

Cost of goods sold = $500,000

So, End Inventory = 160,000+500,000+10,000-500,000

End Inventory = $150,000

4 0
3 years ago
Henry bakes loaves of bread, which he sells for $4 each. He is considering purchasing additional mixers (capital) for his bakery
babunello [35]

Answer: The complete table is as follows:

Explanation:

The following are the formulas for calculating marginal product , total revenue and marginal revenue product:

Marginal product = \frac{Change\ in\ Total\ Product}{Change\ in\ Capital}

Total revenue = Price × Quantity

Marginal revenue Product = Marginal product × Price

By using these formulas, I have completed the following table:

6 0
3 years ago
Coyne Corporation is evaluating a capital investment opportunity. This project would require an initial investment of $30,000 to
postnew [5]

Answer:

A. $41,120.

Explanation:

Year    Description          Cash flow           Present [email protected]%

0       Equipment cost      ($30,000)                    ($30,000)

1-4      Additional CF           $24,000                    $69,929.10

4        Residual value            $2,000                       $1,184.16

Present value total                                                 $41,113.26

Based on the above calculation, the answer shall be A. $41,120.

8 0
3 years ago
What are the six segments of the travel industry? Give examples of each. <br> Actual examples please
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Like cars, bikes, airplanes, trains, public transport?
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