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aksik [14]
2 years ago
12

Melvin receives stock as a gift from his uncle. No gift tax is paid. The adjusted basis of the stock is $30,000 and the fair mar

ket value is $38,000. Melvin trades the stock for bonds with a fair market value of $35,000 and $3,000 cash. What is his recognized gain and the basis for the bonds?

Business
1 answer:
zheka24 [161]2 years ago
6 0

Answer:

The gain of $8,000 is recognized and the bonds have a basis of $35,000

Explanation:

Please see attachment

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The market demand curve for a normal good will shift to the left ​(decrease​) when the price of a substitute good ▼ increases de
suter [353]

1. decreases 
2. increases3. decreases
4. decreases  
The answers here require you to understand the terms involved. So let's look at the options and see what is what.  
1. The price of a substitute good â–Ľ increases decreases​ 
* A substitute good is some good that can be used as a substitute for another good. So if that substitute becomes cheaper, it will be used more as a substitute for the original good. So the answer is "decreases"  
2. The price of a complementary good ▼ decreases increases​,
 * A complementary good is a good that's used in conjunction with another good. Something like milk and cookies. As more cookies are consumed, more milk is desired to go along with the cookies. So increasing the price of the complementary good will decrease the demand of the other good. So the answer is "increases"  
3. Consumer income â–Ľ increases decreases 
* If the consumer has less money to spend, then spending on non-essential goods will decrease. So the answer is "decreases".  
4. Population â–Ľ decreases increases 
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7 0
3 years ago
Durable Goods $1,250 Nondurable Goods $2,130 Services $9,000 Fixed Investment $1,800 Changes to Business Inventory $135 Investme
Anettt [7]

Answer:

Given that,

Durable Goods = $1,250

Non-durable Goods = $2,130

Services = $9,000

Fixed Investment = $1,800

Changes to Business Inventory = $135

Investment in Stocks & Bonds = $15,500

Federal Government Purchases = $1,800

State/Local Government Purchases = $1,700

Transfer Payments = $675

Exports from the United States = $2,100

Imports into the United States = $2,400

(a) Consumption, C = durable goods + non-durable goods + services

                                = $1,250 + $2,130 + $9,000

                                = $12,380

(b) Private investment, I = Fixed investment + change in inventory + Investment in stocks/bonds

                                       = $1,800 + $135 + $15,500

                                       = $17,435

(c) Government spending, G = Federal government purchase + state/local government purchase

                                               = $1,800 + $1,700

                                               = $3,500

(d) Net exports = Exports - Imports

                         = $2,100 - $2,400

                         = -($300)

GDP = C + I + G + NX

        = $12,380 + $17,435 + $3,500 + (-$300)

        = $33,015

7 0
3 years ago
Major reasons for disclosure of deferred income tax information is (are)
Karolina [17]

Answer:

d. All of these answer choices are correct.

Explanation:

Is important to match the expenses with the revenues they are related. If for tax purposes we can deduct a full equipment value in one year. This means we are goung to pay higher income taxes in the future as we don't have the depreciation expense available for taxes porpuses.

The use of deferred incoem tax will be useful to knwo how much are the actual cash obligation and the expected value of the future cash obligations

6 0
3 years ago
Which of the following is included in a standard MLA-style bibliographic entry for an interview conducted by a researcher?
Oksana_A [137]
All of the answers are correct, for the bibliographic entry you need their name, date, and the type of interview conducted. 
5 0
3 years ago
Read 2 more answers
Fitz Company reports the following information.
Paha777 [63]

Answer and Explanation:

The preparation of the operating activities section is presented below:

Cash flows from operating activities

Net income  $374,000

Adjustments made  

Add: Depreciation  $44,000

add: Amortisation expanses  $7,200

Add: Accounts receivable decrease  $17,100

Add: Inventory decrease  $42,000

Less: Prepaid expense increase  -$4,700

Less: Accounts payable decrease  -$8,200

Add: Wages payable increases  $1,200

Less: Gain on sale of machinery  -$6,000

Net cash provided by operating activities  $466,600

4 0
3 years ago
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