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Alex787 [66]
3 years ago
15

Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a Type A merger. In exchange, s

he received stock in Marketing with a fair market value of $500,000 plus $500,000 in cash. Celeste's tax basis in the Supply Chain stock was $1,200,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives
Business
1 answer:
atroni [7]3 years ago
8 0

Answer:

a. No loss is recognized.

b. Celeste's basis in Marketing stock is $700,000.

Explanation:

a. What amount of loss does Celeste recognize in the exchange

Since this is a Type A merger, no loss is required to be recognized.

b. What is her basis in the Marketing stock she receives

Basis in the Marketing stock is the excess of Celeste's tax basis in the Supply Chain stock over the fair market value of stock in Marketing. This can be calculated as follows:

Basis in the Marketing stock = $1,200,000 - $500,000 = $700,000

Therefore, Celeste's basis in Marketing stock is $700,000

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Kitty [74]

Answer: Gemma took a <em>values inventory </em>in her career explorations class. This indicated to Gemma that money and status may mean a lot to her, but she also finds it healthy to maintain a work-life balance. The correct answer is B.

Explanation:

A values inventory is commonly given in school to help a student with their career goals. They are usually given a personality inventory, an aptitude assessment, and an interest inventory.

The values inventory worksheet has two separate sets of questions about life values and work values. On this worksheet, the student must choose from the columns of "must have, would like, and least important."

A few of the life values a student has to choose from are listed below.

1.) Being Healthy as can be.

2.) Having a happy family life

3.) Having a high status and prestige

4.) Having material possessions in life.

A few of the work values a student has to choose from are listed below.

1.) Being a leader at work.

2.) Working as a team member.

3.) Having experiences that are creative.

4.) Having job security.

8 0
3 years ago
Skydiver Question. Several of your friends have offered to take you on a tandem skydiving adventure: Strapped together with a si
natali 33 [55]

Answer:

a. My question will be to ask them "do you have life insurance?"

Life insurance is defined as a form of indemnity against a future occurrence on the life of an individual . In any case of death, the insurance policy pays a sum of money to the beneficiary.

b. The answer i will be looking for in a skydiving mate will be an individual that has life insurance. This is because an individual with life insurance will be more careful.

4 0
3 years ago
What speeds up the flow of investment and wages in the circular flow of the free-market system? A. Fractional reserve banking B.
Paul [167]

Answer:

Antitrust Laws

Explanation: Apex

8 0
3 years ago
If a family spends its entire budget in a given time frame, the family can afford either 85 cans of vegetables or 45 frozen pizz
Marianna [84]

Answer: 0.52

Explanation:

Opportunity cost is the benefit that is obtained from a good or from an activity  is foregone by choosing some other alternative.

It was given that a family spends its entire budget either on vegetables or frozen pizzas.

So, the opportunity cost of a can of vegetables = \frac{45}{85}

                                                                                      = 0.5294 units of frozen pizzas

This means that opportunity cost of spending on a can of vegetables is 0.52 units of frozen pizzas.

5 0
3 years ago
The theory that real shocks to the economy are the primary cause of business cycles is
defon
It would be the real-business-cycle theory which is the principle that mainly revolves around the idea that the macroeconomic models are one of the significant factors that are responsible for the occurrence of economic shocks. In addition, the theory is also called the RBC theory.
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3 years ago
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