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chubhunter [2.5K]
3 years ago
14

Mr. Brown transferred property, which had an adjusted basis to him of $40,000 and a fair market value of $50,000, to Corporation

B in exchange for 100% of B’s only class of stock and $15,000 cash. At the time of the transfer, the stock had a fair market value of $35,000. What is the amount of gain to be recognized by Mr. Brown?
Business
1 answer:
Cloud [144]3 years ago
3 0

Answer:

$0

Explanation:

The adjusted basis for any property or assets transferred to a corporation or a partnership in exchange for shares or property rights must be registered at fair market value.

In this case Mr. Brown transferred property with a fair market value of $50,000 and received in exchange stock worth $35,000 and $15,000 in cash.  ($50,000 = $35,000 + $15,000)

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Lenora and Uma own a dog-grooming business in upstate New York, called Pawkeepsie Groomers. The dog-grooming service market is p
lara [203]

<u>Solution and Explanation:</u>

The Short run supply curve: In a perfectly competitive market, the supply curve is apportion of its rising part of the marginal cost curve. It lies above the minimum of the avergae varibale cost curve. Here, the average variable cost is $14. So, in this case, the short run supply curve would be the portion of the marginal cost curve lies above $14. thus, it should lie above $14.

Thus, the correct option from the given options is A.

5 0
3 years ago
Before ending the meeting, John Noble informed Howie that he would be sending out an e-mail to all employees asking for suggesti
Brut [27]

Answer:

a) employees can be motivated by open communication.

Explanation:

The answer is that Howie does not realize that employees can be motivated by open communication because by asking employees suggestions as to how jobs could be restructured to improve productivity, John Noble is trying to have a direct communication allowing employees to express their thoughts which will make them feel as part of the company and valued which will result in them feeling motivated to perform well in their job.

The other options are not right because employees won't be giving their opinions thinking on equity and ways to simplify job tasks are not the only suggestions that employees can provide.

4 0
3 years ago
QUESTION 4 / 10
Umnica [9.8K]

Answer:

C. The longer you use credit responsibly, the higher your

credit score will be.

Explanation:

A credit card allows its user to access a short term loan. Every payment made via a credit card is considered a loan. The loan attracts interest monthly. Defaulting on credit card payments is similar to defaulting on any other loan type.

Responsible use of a credit card entails using it only when necessary. It means making prompt payments to clear monthly bills.

Credit card history is important information when tabulating an individual's credit score.  Anyone who uses their credit card responsibly ends up with a good credit score.

3 0
3 years ago
The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $24,000,
Margaret [11]

Answer:

36.26%

Explanation:

Simple rate of return:

return/investment

<u>return:</u>

In this case, it will be the cost saving for the new machine: 161,000

<u>investment</u>

We will decrease the investment by the recovery from the old machine.

468,000 new machine - 24,000 salvage value of new   = 444,000

<u>Then, proceed to calculate:</u>

161,000/444,000 = 0.3612 = 36.26%

Consideration:

Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.

3 0
3 years ago
Corporate finance (Financial management) deals with main three types of managerial decision making problems in the context of bu
Roman55 [17]

Answer:

staffing decision making problems

Explanation:

In simple words, corporate finance relates to the branch of finance that studies how and when an organisation and individuals should incest their money in the market.

In this subject matter. the analyst takes into consideration various market factors such as interest rates, GDP etc. and by applying various tools and methods make a decision.

It particularly deals with investment decisions and asset management problems and not staffing decisions.

4 0
3 years ago
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