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postnew [5]
3 years ago
5

Katsu Corp. distributes property to its shareholders as part of a complete liquidation. The fair market value of the property is

$500,000, Katsu's adjusted basis in the property is $150,000, and the property is subject to a liability of $200,000. What amount of gain will Katsu recognize as a result of the transaction?
a. $150,000
b. $550,000
c. $300,000
d. $350,000
Business
1 answer:
frutty [35]3 years ago
3 0

Answer:

Gain will be $350000

So option (d) will be correct option

Explanation:

We have given fair market value of the property = $500000

Basis in the property = $150000

Property is subjected to a liability of $200000

We have to fond the gain

Gain will be equal to

Gain = market value of the property - basis in the property

So gain = $500000-$150000 = $350000

So option (D) will be correct option

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Maggie and Nate enter into a contract for the sale of car, but Nate later refuses to deliver the goods. Maggie asks a court to o
Vikentia [17]

Answer:

Equitable remedy

Explanation:

The equitable remedy is the actions taken by the court in order to solve the breach or the dispute of the contract done.

Since in the given question it is mentioned that the two parties are entered into a contract where the Nate refuse for delivered the goods and maggie ask a court to order Nate to perform his duty so this represent the equitable remedy

5 0
3 years ago
Operating expenses other than depreciation for the year were $400,000. Accrued expenses increased by $35,000. What are the cash
sveticcg [70]

Answer:

$ 365,000

Explanation:

Given data:

The operating expenses for the year = $ 400,000

Increase in the accrued expenses = $ 35,000

Now,

the cash payment for the operating expenses will be calculated as the difference of the  operating expenses and the increase in accrued expenses

thus,

mathematically,

cash payment for the operating expenses = operating expenses - increase in accrued expenses

on substituting the values in the above formula, we get

cash payment for the operating expenses = $ 400,000 - $ 35,000

or

cash payment for the operating expenses = $ 365,000

5 0
3 years ago
Your company builds cars in Texas. You purchase metal from a company in Wisconsin. You are part of the _________ segment of the
kramer

Answer:

You are part of the internal segment of the supply chain, and the metal company is part of the upstream supply chain.

The internal supply chain relates to processes within the company, and the upstream supply chain refers to the supply of raw materials and other input to be made into output in the company.

If a car-building company in Texas imports steel from Wisconsin, then, the providers in Wisconsin are the upstream supply chain.

4 0
3 years ago
On September 30, 2018, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1,00
Delicious77 [7]

Answer:

$17,146

Explanation:

Given:

Acquisition cost of patent = $2,000,000. $1,000,000 is paid immediately. Remaining $1,000,000 is paid after 2 years on September 30, 2020.

We have to calculate present value of $1,000,000 @8%, 2 years. Present value factor is 0.8573.

Present value of $1,000,000 = 1,000,000×0.8573 = $857,300.

Calculation of interest expense:

Principal amount = $857,300

Rate = 0.08

Time period = \frac{3}{12}= \frac{1}{4}\

Interest expense = 857,300\times 0.08\times \frac{1}{4}

                             = $17,146

Therefore, interest expense to be recorded as on December 31, 2018 is $17,146

5 0
3 years ago
Which management function is also a financial responsibility? A. planning B. organizing C. staffing D. coordinating E. controlli
Luda [366]

Answer:

b staffing is the answer

5 0
3 years ago
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