1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
solong [7]
3 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]3 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.  

You might be interested in
Explain briefly why professional certification and membership in professional organizations are important.
Kobotan [32]
The roles of these professional associations have been variously defined: "A group of people in a learned occupation who are entrusted with maintaining control or oversight of the legitimate practice of the occupation;"[1]also a body acting "to safeguard the public interest;"[2]<span> organizations which "represent the interest of the professional practitioners," and so "act to maintain their own privileged and powerful position as a controlling body."</span><span>[2]</span>
5 0
3 years ago
The term ___________________ is used to describe the common pattern whereby each marginal unit of a consumed good provides less
Phantasy [73]

Answer:

diminishing marginal utility.

Explanation:

The term diminishing marginal utility is used to describe the common pattern whereby each marginal unit of a consumed good provides less of an addition to utility than the previous unit.

In Economics, The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

<em>For example, buying a chocolate bar and eating it may satisfy your cravings but eating another one wouldn't give you as much satisfaction as the first due to diminishing marginal utility. </em>

3 0
3 years ago
Daimler AG agreed to sell 30 trucks to Romania in exchange for 150 Romanian-made Jeeps, which is an example of
Effectus [21]

Daimler AG agreeing to sell 30 trucks to Romania in exchange for 150 Romanian-made Jeeps, is an example of countertrade

<h3>What is Countertrade?</h3>

Countertrade is the means by which good and services is being paid for, with other goods or services, instead of with money.

Examples of countertrade include:

  • Barter
  • Counter purchase
  • Offsets

From the question, since Daimler AG agreed to sell 30 trucks to Romania in exchange for 150 Romanian-made Jeeps, hence countertrade has occurred.

Learn more countertrade on brainly.com/question/14659049

8 0
3 years ago
Companies that now purchase this service from HP are experiencing the costs processing of data management.a) trueb) false
mina [271]

The given statement, "Companies that now purchase this service from HP are experiencing the costs processing of data management" is true.

<u>Explanation: </u>

HP Services could provide a data center management system that allows the outsourcing of your services as many of these or as much as possible.

HP Services intends more than one million feet of cloud space, with even more than 45,000 servers, 1.5 million web ports, and 4,000 MIPS microprocessor space.

Their Services meet the wide variety of operational requirements, from "blocks and mortars." Via facilities management, cash management, brand management and project management, we provide a safe, secure, stable, reinforced data center environment.

8 0
3 years ago
Mr. Smith believes that there is going to be rise in the equities market. Based on this information, what would allow Mr. Smith
White raven [17]

Answer:

The answer is 'Buy a Stock Index Future'

Explanation:

To take best advantage of this situation, Mr Smith should go long(buy) on this stock.

Stock Index Future js a method of derivates. Futures, like forward contract is a forward commitment which obligates the buyer to purchase an asset or the seller to sell an asset and have a predetermined future date and price. Future is used to hedge against worse future situations.

7 0
4 years ago
Other questions:
  • The subscription rate of a new offering is generally _______ than the rights-on price and _______ than the ex-rights price.
    14·1 answer
  • what is the name of the device that senses the current flowing, tripping the curcuit, and cutting off the electricity?
    11·1 answer
  • The amount of tattling has suddenly increased in the school-age group at the day care facility where you work. Staff and childre
    14·1 answer
  • ​John's 8minusyearminusold Chevrolet Trail Blazer requires repairs estimated at $ 8 comma 000 to make it road worthy again. His​
    11·1 answer
  • Rates for having a manuscript typed at a certain typing service are $5 per page for the first time a page is typed and $3 per pa
    5·1 answer
  • Peck corporation, a foreign subsidiary was acquired by a U.S. corporation on January 1, 2020. Determine the exchange rate used t
    8·1 answer
  • Harry Corporation just paid a dividend of $10.18 per share and dividends are expected to grow at a constant rate of 6 percent fo
    7·1 answer
  • Jiffy Co. expects to pay a dividend of $3.00 per share in one year. The current price of Jiffy common stock is $60 per share. Wh
    12·1 answer
  • In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are m
    13·1 answer
  • Rodriguez corporation issues 14,000 shares of its common stock for $263,800 cash on february 20. prepare journal entries to reco
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!