Given :
Bud exchanges land with an adjusted basis of $ 22,000 and a fair market value of $ 30,000 for another parcel of land with a fair market value of $ 28,000 and $2,000 cash.
To Find :
What is Bud's recognized gain or loss.
Solution :
This is a transaction of like kind exchange.
So, gain or loss to be recognized is :
Therefore, option B) is correct.
The two primary factors affecting an entrepreneur choice of legal ownership for a venture are TAXES AND LEGAL LIABILITY.
The type of business that an entrepreneur establish will determine the type and the amount of tax that it will be required to pay. The legal liability of the entrepreneur determines the extent to which he can be liable in case he finds himself in a financial mess. The entrepreneur should try and minimize the impacts of these two factors.
<u><em>the answer is A TRACK CHANGES . autocorrect is wrong it deletes the answer and changes it to the right one . but track changes shows all the changes you have made to the paper hope this helps. </em></u>
Answer:
No
Explanation:
Beck was the general manager of company. By signing the company's document, actually company is liable to pay that amount not individual. The claim that Haines make is incorrect as any liability is supposed to be beared by company. The claim that Beck made is correct. because he wrote general manager which means he is an employee of that company. So, liability falls on company rather than individual.
