Answer: The donor may incur a gift tax liability. Also, the cost basis will be $50 per share to the recipient of the gift.
Explanation:
From the question, we are informed that a customer owns 200 shares of ABC, that were bought 2 years ago at $50 per share and that the current market value of ABC stock is $60 per share.
If the customer gifts the stock to his son, the result is the donor may incur a gift tax liability. Also, the cost basis will be $50 per share to the recipient of the gift.
The cash operating cycle for a merchandiser begins with cash purchases of merchandise and ends with receipt of cash.
<h3><u>
What is a merchandise?</u></h3>
- Any form of items, including those used for personal or professional purposes, as well as goods sold to the general public (retail) or other enterprises, are referred to as merchandise (wholesale).
- 'Freebies', or promotional things like the bespoke drink bottles in this example that are given away or not charged for, can also be referred to as merchandise.
- Calendars, magnets, wall art, stationery, greeting cards, textiles, badges, and a wide variety of other goods may be included in this category.
- A T-shirt with a slogan or logo that a political party distributes to voters during an election campaign or a calendar with a logo that a supplier offers its clients at the end of each year are two examples of freebie products.
Buying merchandise can be done with cash or on credit. The accounts involved in the transaction are the purchases account and the cash account if goods are paid for in cash. It debits the purchases account and credits the cash account.
Know more about Merchandise with the help of the given link:
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Answer:
15
Explanation:
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Answer:
$40,000 per year; $37,500 per year; $40,000.
Explanation:
From the question above, we are given the following parameters; Alpha Firm offers a salary = $40,000 per year + no bonuses, "Beta Firm offers a base salary of $35,000 per year with a 25% chance that you will receive an annual bonus of $10,000".
So, to answer the question,the expected salary of working for Alpha Firm will surely be = $40,000 per year.
At Beta Firm the expected salary is = $35,000 + 0.25($10,000) = $37,500.
Therefore, if I was risk neutral, the expected value of the year bonus offered by Beta Firm would need to be at least $40,000 for me not to be indifferent to the choice between the two options.
