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baherus [9]
3 years ago
6

Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a Type A merger. In exchange, s

he received stock in Marketing with a fair market value of $513,500 plus $513,500 in cash. Celeste's tax basis in the Supply Chain stock was $1,340,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives
Business
1 answer:
SOVA2 [1]3 years ago
7 0

Answer: Marketing Stock Basis of $826,500

Explanation:

a) She will recognize no loss as the exchange is TAX DEFERRED.

b) The Stock Basis is calculated with the following formula,

Stock basis = Carryover Basis - Cash received

Plugging in the figures therefore we will have,

Stock Basis = $1,340,000 -$513,500

= $826,500.

If Celeste had sold stocks at $513,500, she would have suffered a loss of $313,000 (826,500 - 513,500).

If you need any clarification do react or comment.

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Blinding Light Co. has a project available with the following cash flows: Year Cash Flow 0 −$33,790 1 8,210 2 9,890 3 14,120 4 1
oksano4ka [1.4K]

Answer: 20.15%

Explanation:

The IRR is the discount rate that makes brings the Net Present Value to zero.

It can be solved for by various means including using Excel as shown in the attached file.

Year 0      -33790

Year 1        8,210

Year 2       9,890

Year 3       14,120

Year 4       15,930

Year 5       10,820

= IRR (-33,790 , 8,210 , 9,890 , 14,120 , 15,930 , 10,820 )

= 20.15%

4 0
3 years ago
When a firm sees average costs start to increase as production increases, this is known as __________.
lesya692 [45]

When a firm sees average costs start to increase as production increases, this is known as diseconomies of scale.

What Are Diseconomies of Scale?

When a corporation or business expands to the point where the costs per unit rise, this is known as a diseconomy of scale. It happens when a firm's use of economies of scale is no longer viable. According to this theory, when output increases, a firm experiences an increase in costs rather than continuing to see reducing expenses and rising output.

What causes diseconomies scale?

Diseconomies of scale can be the result of several things, including poor management and employee communication, a lack of drive, a lack of coordination, and a loss of concentration.

How do you manage diseconomies of scale?

Businesses may divide themselves into more controllable parts in an effort to alleviate scale-related inequities. A huge multinational, for instance, might be divided up into regional geographic areas, with local managers being rewarded for maximizing efficiency.

Learn more about diseconomies of scale: brainly.com/question/27960803

#SPJ4

3 0
1 year ago
n an elimination reaction, the non-preferred geometry in which the β hydrogen and the leaving group are on the same side of the
nasty-shy [4]

Answer:

Explanation:

In an elimination reaction, the non-preferred geometry in which the β hydrogen and the leaving group are on the same side of the molecule is called syn periplanar. According to the Zaitev rule, the major product in a β-elimination has the more substituted double bond. In an E1 reaction, the rate depends on only the alkyl halide concentration. The rate of the E2 reaction increases as the strength of the base increases because the reaction is biolecular and the base appears in the rate equation. Carbocation intermediates are involved in E1 mechanisms. Polar aprotic solvents increase the rate of the E2 reactions. Anti periplanar geometry is the preferred arrangement for any alkyl halide undergoing E2 elimination, regardless of whether it is cyclic or acyclic.

6 0
4 years ago
1. Interest rates on a 4-year Treasury security are currently 7%, while 6-year Treasury securities yield 7.5%. If the pure expec
Fiesta28 [93]

Answer:

The market believes that 2-year securities will be yielding 4 years from now is 8.51%

Explanation:

The pure expectations theory tries to predict what short-term interest rates will be in the future based on current long-term interest rates.

Given data;

Interest rate on 4-year treasury security = 7%

Interest rate on 6-year treasury security = 7.5%

The pure expectation theory explains  that the 6-year rate is the geometric average of the 4-year rate and the 2-year rate 4 years from now.

The 2-year rate in 4 years is represented by r

We solve;

(1  +  7.5%)⁶ =  (1  +  7%)⁴ ×  (1  +  r)²

(1 + 0.075)⁶  = (1. 0.07)⁴ ×  (1  +  r)²

1.543301526  =  1.31079601  ×  (1  +  r)²

1  +  r  =  1.08507020

r  =   1.08507020 - 1

r = 0.08507020

r = 8.51%

Therefore, the market believes that 2-year securities will be yielding 4 years from now is 8.51%.

6 0
4 years ago
When Angela wanted to provide financial security for her dependents, she considered purchasing a product that would provide inco
zavuch27 [327]

Answer:

C. Life insurance company

Explanation:

  • Life insurance is an insurance company that deals with a product that provides reinsurance in the event of the untimely death of the insured.
  • There are also products that offer a savings / investment portion that saves insurance space for their future or for a specific period.

so correct option is C. Life insurance company

4 0
3 years ago
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