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
Citrus2011 [14]
3 years ago
7

Ula purchased stock in Purple, Inc., six years ago for $150,000. Purple has assets with a value of $225,000 ($175,000 basis) and

liabilities of $60,000. Purple transfers $200,000 of assets and all its liabilities to White Corporation in exchange for White common stock. Purple distributes the White stock and its $25,000 remaining asset (cash) to Ula in exchange for all her Purple stock. Purple then liquidates. How is this transaction treated for tax purposes?
Business
1 answer:
elena55 [62]3 years ago
3 0

Answer:

$15,000 gain

Explanation:

Assets with a value of $225,000

Remaining asset (cash) to Ula ($25,000)

Purple liabilities ($60,000)

Balance $140,000

Balance Brought forward $140,000

Remaining asset (cash) to Ula $25,000

Ula purchased stock ($150,000)

Balance $15,000 gain

Or

$225,000-$25,000-$60,000=$140,000+$25,000-$150,000=$15,000 gain

Therefore we have $15,000 gain.

You might be interested in
In order to produce a new product, a firm must lease new equipment. The managers feel that they can sell 10,000 units per year a
kogti [31]

Answer:

The most the firm can spend to lease the new equipment without losing money=$75,000

Explanation:

The point at which the revenue in terms of sales equals the cost is the break-even point. This can be expressed as;

R=C

where;

R=revenue from sales

C=cost

And;

R=P×N

where;

R=revenue from sales

P=price per unit

N=number of units

In our case;

P=$7.5 per unit

N=10,000 units

replacing;

R=7.5×10,000=$75,000

Total revenue from sales=$75,000

C=p×n

where;

p=cost per unit

n=number of units

In our case;

p=$5

n=unknown

replacing;

C=5×n=5 n

At break-even point, R=C;

5 n=75,000

n=75,000/5=15,000

The break-even cost=5×15,000=$75,000

The most the firm can spend to lease the new equipment without losing money=$75,000

5 0
3 years ago
What are trade offs.
Sophie [7]

Ok so trade offers is like here an example: if you want that car really bad but the other person says if you this car you have to give him something that he likes or the same value as the car.

8 0
2 years ago
What is the impact of war in international trade
Bezzdna [24]

The impact of war in international trade includes:

  • restriction of goods to the countries
  • conflict leading to non-agreement on trade
  • low or no trade relationship between countries.

<h3>What is an international trade?</h3>

This refers to the economic transactions that are made or took place between countries.

Hence, any military conflict impact on international trade by causing a restriction of goods to the countries, conflict leading to non-agreement on trade, low or no trade relationship between countries etc.

Read more about international trade

<em>brainly.com/question/15115779</em>

#SPJ1

8 0
1 year 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
2 years ago
Olive Maccones dies without a will. She has three sons and seven grandchildren. She owned a substantial amount of property. What
navik [9.2K]

Answer:

The property will be transferred according to the Statute of Descent and Distribution.

Explanation:

Intestacy is the situation where a person dies without leaving a will for the sharing of his estate.

When this happens the descent and distribution statute comes into play.

The heirs or next of kin are beneficiaries to the estate. Heirs can be be blood relatives, adopted children, adopted parent, or surviving spouse.

The line of descent is the order of beneficiaries that are from an ancestor. The line of descent can be direct such as sons, or collateral such as cousins.

In this case where Olive Maccones dies without a will and she has three sons and seven grandchildren, her estate will be distributed by a court based on the line of descent of her sons and grandchildren.

6 0
2 years ago
Other questions:
  • Suppose that McDonalds and Yum Brands are the sole producers of a quadruple-decker chicken and hamburger sandwich. The two firms
    11·1 answer
  • The text identifies three goals of strategic messages. During office meetings, Sara expresses her respect for her boss by listen
    14·1 answer
  • How can producers maximize their profit?
    7·1 answer
  • Even if you are willing to take on more responsibility, you need to make sure that ______. a. you do not take on too much b. you
    7·2 answers
  • Suppose that Italy and Switzerland consider trading wine and oil with each other. Italy can gain from specialization and trade a
    9·1 answer
  • Scenario 22-3: Economy of Centralia Centralia has no trade and no government. GDP = $25 trillion. Consumption Spending = $18 tri
    9·1 answer
  • Dickinson Company has $11,880,000 million in assets. Currently half of these assets are financed with long-term debt at 9.4 perc
    6·1 answer
  • Managers at Umbrella Corporation, a firm in East Asia, want to make their company a global leader in business process outsourcin
    8·1 answer
  • A service contract for a video projection system costs $80 a year. You expect to use the system for six years. Instead of buying
    6·1 answer
  • when james was assigned as the product development manager, he was told to keep the existing work schedule and not stray from th
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!