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solong [7]
2 years ago
6

Eve transfers property (basis of $120,000 and fair market value of $400,000) to Green Corporation for 80% of its stock (worth $3

50,000) and a long-term note (worth $50,000) executed by Green Corporation and made payable to Eve. As a result of the transfer:
a. Eve recognizes no gain.
b. Eve recognizes a gain of $50,000.
c. Eve recognizes a gain of $230,000.
d. Eve recognizes a gain of $280,000.
e. None of these.
Business
1 answer:
andrey2020 [161]2 years ago
4 0

Answer:

The correct answer is Option B.

Explanation:

The value of the property Eve transferred to Green Corporation would be assessed on the basis of market fair value under the head 'Income from House Property'. The market value of the property that Eve transferred to Green Corporation is $400,000. Meanwhile, Eve received 80% of Green Corporation stock that is worth $350,000. Gain on transfer is $400,000 - $350,000 = $50,000. Since Eve received some money from this transaction (a long-term note worth $50,000), that must be recognized as a gain since it is not included under Section 351.  

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A partial ownership in the corporation.
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Credence properties

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2 years ago
Suppose Rocky Brands has earnings per share of ​$2.33 and EBITDA of ​$29.3 million. The firm also has 5.3 million shares outstan
posledela

Answer:

enterprise value to EBITDA.

Explanation:

The computation of the value of the stock using P/E ratio is shown below:-

Stock value = (P/E ratio × EPS) × Number of shares outstanding

= (12.9 × $2.33) × 5.3 million

= 159.3021 million

Now, the computation of the value of the stock using EBITDA multiple is shown below:-

Stock value = (EBITDA multiple × EBITDA) - Net debt

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= 208.03 - $125 million

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3 0
2 years ago
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Furkat [3]

Answer:

-Deliver the data necessary for tactical decisions and planning

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-Provide a framework for defining and enforcing and ensuring the security and privacy of the data in the database

Explanation:

In <em>data management</em>, the implementation of a database always results in a change in both operations and management.

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6 0
3 years ago
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snow_tiger [21]

Answer:

lawyer's computer.

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In this case the lawyer's computer is a good that the lawyer owns and can be exchanged for money. Also the lawyer can use the computer to help treat court cases thereby earning income.

8 0
2 years ago
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