Answer:
The tax consequences to Comet because of the stock redemption would be a reduction of $40,000 in E&P because of the exchange.
Explanation:
According to the given data we can conclude that the tax consequences to Comet because of the stock redemption would be Reduction of E& P due to exchange. In order to calculate the amount of Reduction we would have to make the following calculation:
Reduction of E& P due to exchange=Total E&P*Total voting Right Sold
According to the given data we have the following:
Total E&P=Comet has total E&P of $160,000
Total voting Right Sold=shares redeem by comet/shares by Pat+shares by Pam
Total voting Right Sold=50/ (100+100)
Total voting Right Sold=25%
Therefore, Reduction of E& P due to exchange=$160,000*25%
Reduction of E& P due to exchange=$40,000
The tax consequences to Comet because of the stock redemption would be a reduction of $40,000 in E&P because of the exchange.
Answer: The profits would be shared equally
Explanation: This is because
Since there was no agreement stating how profits would be divided,then the applicable state Limited Liability Company statute will rule. Most LLC statutes states that if members do not specify how profits are to be divided, they will be divided equally. As long as no operating agreement or LLC statute addressed the particular issue, the partnership law applys which also indicates that profits should be divided equally among the owners of a firm unless it was specified otherwise.
Answer:
c. $449750.00.
Explanation:
1/8 of 10 lots of bushels of 5,000 per lot = 1.25
Therefore, the price quote of 899'4 cents is written as 899'4+1.25 = $8.995
Total value = Wheat(bushels) * Price Quote
Total value = 50,000 * $8.995
Total value = $449,750
Answer:
The answer is: A) core competencies that have become core rigidities.
Explanation:
The core competencies of a business are what makes that business have an strategic advantage over its competition. In this case, the store sells the best high quality fabrics.
In the past the store had an strategic advantage since they sold a great product, but nowadays very few people are interested or willing to buy their fabrics. So what once was a core competency has now become a core rigidity. The store relied for too long on their core competency until it became obsolete. A textbook example for this is Kodak and its photographic film.
Answer:
C. Net income will decrease by $ 300
Explanation:
rent expense 300 debit
prepaid rent 300 credit
the entry decrease the prepaid expense (asset) and recognize the accrued expense for the period (rent of February)
As this entry recognzie an expense, the net income decreases by this amount as it decrases the net proceeds from revenues
