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
vredina [299]
3 years ago
6

Robert sold his Lebec Corporation stock to his sister Karen for $8,000. Robert's cost basis in the stock was $15,000. Karen late

r sold this stock to Dana, an unrelated party, for $15,500. What is Karen's realized gain?
Business
1 answer:
lara [203]3 years ago
7 0

Answer:

$7,500

Explanation:

A few points must be considered in order to calculate ther realized gain.

1. Although Robert's stock in Lebec Corporation was $15,000 at cost, it was sold to Karen (his sister and related party) for $8000. Since it is related party transaction, the loss of $7000 ($15,000-$8,000) cannot be reported as a loss.

2. Karen's basis for the stock is $8000 (the amount she bought it from her brother).

3. Karen sold the stock to Dana for $15,500. The realized gain since Dana is not related is $15,500-$8,000= $7,500. This becomes the realized gain since it is an unrelated party transaction.

You might be interested in
Baldwin Corp. ended the year carrying $21,580,000 worth of inventory. Had they sold their entire inventory at their current pric
IceJOKER [234]

Explanation:

The given question cannot be answered as little information is provided.  However it shall be an amount if $21,580,000. For, complete analysis we need to understand  the current prices and various other variable costs. We know that the contribution margin is the Sale Price (SP) minus the Variable Cost (VC). It is the number of sales per unit that will be available to service fixed expenses and to generate the profit.

Therefore, to determine a more detailed answers more inputs are needed.  

8 0
2 years ago
Consultants notified management of Goo Goo Baby Products that a crib toy poses a potential health hazard. Counsel indicates that
Vlad1618 [11]

Answer:

Income statement will have an increased expense of $4.8 million and Revenue and cost of goods sold will decrease. In balance sheet the inventory will be decreased by the amount of crib toy inventory available.

Explanation:

Income Statement will show an expense of $4.8 million in this period as the cost of recall of inventory due to health hazard. Also sales and cost of goods sold will decrease by the amount of sales of crib toy in sales and by the amount of crib toys cost in cost of goods sold and will ultimately result in decrease in a gross profit of a company.

In the Balance Sheet the amount of Inventory will be decreased by the amount of crib toys available in stock.

8 0
3 years ago
Tucker Company makes chairs. Tucker has the following production budget for January - March. January February March Units Produc
Mademuasel [1]

Answer:

Tucker Company

The number of board feet of wood that Tucker needs to purchase in February is:

=  46,297.

Explanation:

a) Data and Calculations:

Production Budget

                                               January   February      March      Total

Units Produced                         11,297       12,205      9,276   32,778

Board fee for each chair             4                4                4           4

Total board feet required       45,188       48,820     37,104    131,112

Board feet required               45,188       48,820     37,104    131,112

Ending Materials Inventory    9,764           7,421

Beginning Materials Inventory     (0)        (9,764)     (7,421)

Purchase of board feet        54,952      46,297

3 0
3 years ago
120*45+120*54*120+0+0+0+0+0+0+0=
IRINA_888 [86]

Answer:

783000

Explanation:

3 0
2 years ago
Read 2 more answers
the 5 basic marketing strategies are called the 5 p's. another name for these strategies is ________.
MatroZZZ [7]
I believe it's the marketing mix?
6 0
2 years ago
Other questions:
  • Maggie's manager notices that she exhibits an external locus of control when she speaks about her work. Her manager should Group
    14·1 answer
  • For each example, identify the most appropriate CTSO.
    6·2 answers
  • All managers are by necessity leaders. <br> O True <br> O False
    12·2 answers
  • Ming applies for a job as a receptionist at an engineering firm. If she is denied a job because she is of Asian origin, she may
    8·1 answer
  • An effective concurrent strategy for dealing with employee theft of supplies and equipment is ________.
    12·1 answer
  • An entrepreneur looking for financing to get her small, personally-owned business up and running should probably consider; (16-2
    13·1 answer
  • Thomas Company uses the weighted-average method in its process costing system. The first processing department, the Welding Depa
    13·1 answer
  • Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follo
    15·1 answer
  • For the month of June, Beeman Corp. estimated sales revenue at $600,000. Beeman pays sales commissions that are 4% of sales reve
    15·1 answer
  • Power that organizes and orchestrates the systemic interaction within and among societies is an example of?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!