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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.  

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8 0
3 years ago
Read 2 more answers
there is a growing emphasis on strategic supply management processes and less on purchase transactions.
PSYCHO15rus [73]

This statement is true. As there is the growing emphasis on the strategic supply management processes and less on the purchase transactions.

Effective interpretation of corporate and supplier objectives, selection of appropriate actions to achieve objectives and integration of inventory information into organizational strategies. hiring professionals trained specifically in supply management, providing them with technical knowledge and long-term leadership development. emphasizing strategic cost management, engaging key suppliers early in the process, and measuring reductions in total cost of ownership. Supply management has evolved from a process-oriented, strategic function to a transactional, tactical function. The reduction in inventory investment comes primarily from users reducing their demand for stocked items. Therefore the statement is true.

Learn more about supply management.

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8 0
1 year ago
Chaikin Money Flow is calculated by summing the ADs over the past _____ days and dividing that sum by the total volume over the
antiseptic1488 [7]

Answer:

d. 21, 21

Explanation:

The Chaikin Money Flow is a model (indicator) that was developed by Marc Chaikin in the 1980s and it is typically used by financial institutions or experts to monitor the volume-weighted average of accumulation and distribution of a stock for a specific period of time. Thus, the default or standard period for the Chaikin Money Flow is 21 days

Hence, Chaikin Money Flow is calculated by summing the average of the daily money flow (ADs) over the past 21 days and dividing that sum by the total volume over the past 21 days.

7 0
2 years ago
Tempo Corp. will issue preferred stock to finance a new artillery line. The firm's existing preferred stock pays a dividend of $
Len [333]

Answer:<u> </u><u><em>Relevant cost of new preferred stock = 10.53%</em></u>

Explanation:

Given:

Dividend = $4.00 per share

Selling for = $40 per share.

Flotation costs =  5% of the selling price.

Marginal tax rate is 30%.

We can compute the cost of new preferred stocks using the following formula:

Relevant\ cost\ of\ new\ preferred\ stock =\frac{ Dividend}{Current\ price\ after\ flotation\ Cost}

Relevant\ cost\ of\ new\ preferred\ stock =\frac{4}{40-(0.05\times40)}

∴ Relevant cost of new preferred stock = 10.53%

Therefore, the correct option is (d)

6 0
3 years ago
At which step or steps in the decision-making process do qualitative considerations generally have the greatest impact
ludmilkaskok [199]

Answer:

Making a decision

4 0
1 year ago
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