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
nignag [31]
2 years ago
9

Indigo Corporation wants to transfer cash of $150,000 or property worth $150,000 to one of its shareholders, Linda, in a redempt

ion transaction that will be treated as a qualifying stock redemption. If Indigo distributes property, the corporation will choose between two assets that are each worth $150,000 and are no longer needed in its business: Property A (basis of $75,000) and Property B (basis of $195,000). a. Compute Indigo's recognized gain or loss if it distributes Property A in redemption of Linda's shares.
Business
1 answer:
MaRussiya [10]2 years ago
6 0

Answer:

$75,000 recognised gain

Explanation:

Indigo corporation wants to transfer $150,000 in cash or property to one of its shareholders Linda

Property A has a basis of $75,000

Property B has a basis of $195,000

Therefore the recognized gain or loss of property A is distributed in redemption of Linda's share can be calculated as follows

= fair market value - basis

= $150,000-$75,000

= $75,000 recognised gain

Hence indigo's recognised gain if it distributes property A in redemption of Linda's share is $75,000

You might be interested in
In business, a message written to right a wrong is called a claim. Straightforward claims are those where the receiver is expect
REY [17]

Answer: A clear statement of the problem

Explanation:

The opening of a direct claim message should clearly state the problem that you would like to be addressed by the receiver and would set the tone for the rest of the message.

Claim messages are formal messages and as such, should be clear and concise so that the message is communicated effectively and there is a lesser chance of the message being misread. This is why the message should be clearly stated, so that the receiver understands it and responds in kind.

5 0
2 years ago
Advanced Enterprises reports year−end information from 2019 as​ follows: Sales​ (160,250 units) ​$969,000 Cost of goods sold ​(6
Ilya [14]

Answer:

Cost of goods sold = $576,900

Explanation:

The budgeted cost of goods sold will be the sales volume in 2020 multiplied by cost per unit .

Sales volume in year 2020= (100-10)% ×  sales figure for 2019

                                            = 90% × 160,250=  144,225  

Cost of goods sold per unit =  cost of goods sold in 2019/Sales units in 2019

                                              = 641,000/160250=$4

Cost of goods sold =  $4× 144,225 =  $576,900

Cost of goods sold = $576,900

3 0
3 years ago
American express established a consulting program that sent expert teams of employees into nonprofits to solve organizational pr
Bas_tet [7]

<span>The answer is skill-based volunteering or volunteerism. It is a tactical type of volunteerism that allows professionals to make use of their skills to impact nonprofits to help make stronger their operation and services. Also it fosters cross-departmental cooperation and has been proven to improve a company’s performance.</span>

5 0
3 years ago
Read 2 more answers
Property A is a self storage facility with a going cap rate of 6.0%. Property B is an office building with a going cap rate of 6
hjlf

Answer:

Worth of both the property will be same.

Explanation:

Data provided in the question:

Cap rate for the Property A which is a self storage capacity = 6%

Cap rate for the Property B which is an office building = 6%

NOI of both the buildings are equal

Now,

Mathematically,

Cap rate is given as = [ NOI ] ÷ [ Worth of the property ]

or

Worth of the property =  [ NOI ] ÷ [ Cap rate ]

Since, the NOI and cap rate for both the buildings are same

Therefore,

Worth of both the property will be same.

3 0
3 years ago
Which of these household purchases will be counted as part of consumption in a country’s gross domestic product?(pick more then
alex41 [277]
I think it's a "newly constructed home"

I hope it helped you!
6 0
2 years ago
Read 2 more answers
Other questions:
  • On July 1 of the current year, the assets and liabilities of Wong Industries, are as follows: Cash, $15,000; Accounts Receivable
    9·1 answer
  • Which of the following best represents a walkthrough a. The controller reviews the bank reconciliation prepared by the accountan
    8·1 answer
  • Wherry Furnishings uses job order costing. The company has a contract to deliver furniture to a hotel. The hotel has 60 basic ho
    15·1 answer
  • Sweet Sue Foods has bonds outstanding with a coupon rate of 5.02 percent paid semiannually and sell for $1,948.34. The bonds hav
    15·1 answer
  • An article in the Wall Street Journal on the housing market states that​ "Steady job​ growth, rising wages and low interest rate
    11·1 answer
  • In Rovamia, a developing country, companies often had to compromise on quality and cost earlier to make their products affordabl
    7·1 answer
  • Dobbs Company issues 6%, two-year bonds, on December 31, 2018, with a par value of $106,000 and semi-annual interest payments.
    11·1 answer
  • Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from opera
    8·1 answer
  • Olivia is really good at working with computers and has been helping at her mom's company by setting up and maintaining the empl
    14·1 answer
  • If the mpc is 0.60 and disposable income increases from $20,000 billion to $22,000 billion, consumption will increase by:_______
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!