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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.

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David contributes investment land with a basis of​ $24,000 and an FMV of​ $40,000 to a partnership for a​ 10% interest in partne
creativ13 [48]

Answer:

C) $1,200 capital gain.

Explanation:

David's basis  on the land was $24,000

liability assumed by other partners = $30,000 x  (1 - 10%) = $27,000

liability assumed by  David on the partnership's other liabilities = $18,000 x 10% = $1,800

David's gain = liability assumed by other partners ($27,000) - land basis ($24,000) - additional liability assumed by David ($1,800) = $1,200 gain

When a partner contributes property to a partnership, his/her gain or loss must be determined using the asset's basis, not the fair market value.

4 0
4 years ago
As the chief executive officer of Hayden Corp., Kim found an effective way to reward high-performing employees and boost their m
mixas84 [53]

Answer:

c. Leading

Explanation:

According to my research on the different management functions, I can say that based on the information provided within the question the management function that Kim is engaged in is called Leading. This is the act of a manager influencing or motivating his/her employees so that they perform at optimal capacity in order to achieve the organizational goals. Which is what Kim is doing by looking for a way to reward the best employees.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
3 years ago
Which of the following best describes the opportunity cost of attending a free concert at the local coffee shop?
Rudik [331]

Answer:

1. The chance to play the latest video game with your roommate while you were at the concert

Explanation:

Opportunity cost is the next best option forgone when one alternative is chosen over other alternatives.

The opportunity cost of attending the concert is the activity that could have been done if one didnt attend the concert which is playing video games.

I hope my answer helps you.

8 0
3 years ago
if a small country produces 100 units of product x and consumes 140 units at a price of $2 under free trade, but the imposition
kramer

The gains in producer surplus in this country because of the tariff is. $22.00.

A surplus is if you have extra of something than you want or plan to use. For example, whilst you prepare dinner a meal, when you have meals ultimately after all people have eaten, you've got got a surplus of meals. a number of belongings in extra of what's considered necessary to fulfill liabilities. adjective. 5. being a surplus; being in extra of what's required. surplus wheat.

Surplus budget means, at any given date, the extra coins and different diagnosed belongings which are predicted to be resolved into coins or its equal withinside the herbal route of activities and with an inexpensive certainty, over the liabilities and important reserves on the identical date.

Learn more about surplus here

brainly.com/question/14332993

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4 0
1 year ago
Why is leadership important to an entrepreneur
Anit [1.1K]

Answer:

No matter what context you're operating in, entrepreneurial leadership will be central to your growth. Developing leadership skills helps develop talent, roll out new products and services, deliver efficiency and gain market share. Not developing your leaders might be fine if you want to stay small.

Explanation:

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7 0
3 years ago
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