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Zinaida [17]
3 years ago
8

During the current year, Ecru Corporation is liquidated and distributes its only asset, land, to Kena, the sole shareholder. On

the date of the distribution, the land has a basis of $250,000, a fair market value of $650,000, and is subject to a liability of $500,000. Kena, who takes the land subject to the liability, has a basis of $120,000 in the Ecru stock. With respect to the distribution of the land, Which of the following is correct?
a. Kena recognizes a gain of $530,000
b. Ecru Corporation recognizes a gain of $250,000
c. Kena recognizes a gain of $30,000
d. Kena has a basis of $250,000 in the land
Business
1 answer:
statuscvo [17]3 years ago
4 0

Answer:

c. Kena recognizes a gain of $30,000

Explanation:

cash  650,000 debit

  land 250,000 credit

  gain at disposal 350,000 credit

liabilities 500,000 debit

        cash        500,000 credit

Then, the company will close all account and leave kena account with a capital of 150,000 to mathc the remaining 150,000 cash

as her basis is 120,000 there will be a gain for 30,000

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Answer:

d. makes all decisions internally about leadership and how the work is done and has the potential for high autonomy.

Explanation:

A self-directed team is a group of employees that works without a leader to reach an objective. As this team doesn't have a leader they work together to organize the job and set the rules and deadlines. This model give employees more responsability, increases satisfaction, and gives them autonomy. According to this, the answer is that a self-directed team makes all decisions internally about leadership and how the work is done and has the potential for high autonomy.

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3 years ago
Revenue is recorded when services have been performed or products have been delivered to customers. The accounting principle sup
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Answer:

The revenue recognition principle

Explanation:

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2 years ago
How can business activity affect the government?
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You just hung up the phone after a 3-hour conference call with your colleagues in India. After the call, one of your co-workers
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Answer: Examine your expectations for conducting the meeting and determine how they might be different than your Indian colleagues.

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Cross-cultural communication looks at how people from different cultural backgrounds communicate among themselves. The aim of cross-cultural communication is to bring together people with cultural differencces in such a way that the cultural differences shouldn't be a barrier.

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Regarding the question, the best way to improve one's cross cultural communication will be to examine the expectations one has for conducting the meeting and then determine how the expectations might be different from my Indian colleagues.

6 0
3 years ago
Grayhawk Company reported net credit sales of $588,000 for the year ending December 31, 2019. On January 1, 2019, the Allowance
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Answer:

D) $8,040

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