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
Cassandra is a 21-year-old who is still in college. She wants a credit card so she can order items online.
ycow [4]
The most logical answer to me would be A, however I recommend you don’t go with my answer JUST YET because this is an educational guess. Take time to think about my answer. Sorry if it’s wrong
4 0
3 years ago
A private, not-for-profit hospital received a donation of medicine from the XYZ Pharmaceutical Company on March 15, 20X9. The co
jeka57 [31]

Answer:

$90,000

Explanation:

5 0
3 years ago
On January 1, Year 1, Zero Company obtained a $52,000, 4-year, 6.5% installment note from Regional Bank. The note requires annua
Gnom [1K]

Answer:

$ 11,799 is the principal balance of the note payable.

Explanation:

The  Interest expense for the installment note on the year of the December 31, year can be determined by the following equation that are mention below

= 52,000 * 6.5\ percent

52,000 * \frac{6.5}{100}

= $\ 3,380

Now the Principal balance  of the component in $15,179 payment of the  December 31, year 1  can be determined by the

principal\  and \ interest\ of \ note\ annual\  payments -   Interest\ expense \ for\  the\  installment\   note

= 15,179 -3,380

=$ 11,799

5 0
3 years ago
What term is used to mean employee expertise and politeness and their ability to convey trust?
melomori [17]

Answer:

The term is Assurance

Explanation:

Assurance is the term that is used to mean employee expertise and politeness and their ability to convey trust. It refers to the employee's knowledge and courtesy and thereby shows his ability to convey trust.

Employees that possess the virtue of assurance in the workplace give their employers the opportunity to trust them. Such employees perform well at work.

4 0
3 years ago
"which expenses would most likely be classified as prepaid expenses (asset) rather than accrued expenses (liability)?"
MakcuM [25]

Expenses likely to be classified as prepaid expense (asset) are Prepaid Rent & Insurance Premiums. Enter a prepaid rent payment on the balance sheet as an asset until the month when the company is actually using the facility to which the rent relates, and then charge it to expense.   Any insurance premium costs that have not expired as of the balance sheet date should be reported as a current asset such as Prepaid Insurance.


8 0
3 years ago
Read 2 more answers
Other questions:
  • atch China's GDP Growth Rate to the year. This data is easily found by creating a raw data longitudinal or advanced bar chart an
    8·1 answer
  • Suppose that a Treasury coupon security is purchased on April 8 and that the last coupon payment was on February 15. Assume that
    10·1 answer
  • The philosophy of producing a high-quality product or service and achieving quality in every aspect of the business and its rela
    12·1 answer
  • In case you have to complete an application on site, you want to make sure you have your completed Personal Fact Sheet.
    12·2 answers
  • In terms of innovation streams, what ____ occurred when customers purchased flat-screen computer monitors to replace the older,
    10·1 answer
  • A home equity loan can be risky because the lender can foreclose if you don’t make your payments
    13·2 answers
  • A few years ago the British government was considering​ retiring, or buying back from​ investors, some outstanding consols that
    5·1 answer
  • Who is called living lion of nepal and why and when he got this title​
    6·1 answer
  • In terms of general value propositions, the Hawks are providing greater value with a ____________________ strategy.
    5·1 answer
  • The purpose of making a learning document is to
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!