Answer: d. Ron has income on the transaction of $21,000
Explanation:
Ron’s stock received for services counts toward the 80% control test so the transfers are eligible for IRC § 351 exemption.
This means that the total income that Ron has as a result of this transaction is the $21,000 for services.
Ron's basis will therefore be;
= Cattle basis + Income from services rendered
= 6,000 + 21,000
= $27,000
Orson has probably committed the tort of conversion unless he can show that <u>"Harrison does not really own the car."</u>
Conversion is an intentional tort comprising of taking with the goal of practicing over the property a proprietorship conflicting with the genuine proprietor's privilege of possession". In the United Kingdom, it is a tort of strict liability. Its counterparts in criminal law incorporate robbery or burglary and criminal change. In those wards that remember it, criminal transformation is a lesser wrongdoing than burglary/theft.
Answer:
Internal rate of return = 12%
Explanation:
Below is the calculation of internal rate of return:
The new machine requires cash payment = $38198
Annual cash flows = $15904
Time period = 3 years
First divide the cash payment with the annual cash flow and then look at the factor table to find the interest rate at 3rd year.
Factor = 38198 / 15904 = 2.40
Now look the value 2.40 in the table:
Thus Internal rate of return = 12%
Answer:
A sub-agent
Explanation:
Since Mike who was hired by Bob is licensed to practice law, which would help him file a lawsuit against those who don't pay the outstanding balances owed, he is a sub-agent.
A sub-agent in legal law is someone who performs a fiduciary duty and incurs the same liabilities in regard to his immediate employers, like the sole principal.
Answer:
$63,000
Explanation:
One of the four methods of determining insurance if the DINK method which means Double income with no kids.
To estimate the value of the insurance using this method , the sum of , mortgage , car loans and personal debt is divided by two and added to the funeral expenses
Mortgage - 100,000
Car loan - 11,000
Personal debt - 2000
Credit card - 3000
Total = 116,000
Insurance = (116,000/2) = 58,000
Funeral expenses - 5,000
=63,000
