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Zinaida [17]
3 years ago
6

Ralph gives his daughter, Angela, stock (basis of $8,000; fair market value of $6,000). No gift tax results. If Angela subsequen

tly sells the stock for $10,000, what is her recognized gain or loss?\
Business
1 answer:
spayn [35]3 years ago
8 0

Answer:

Her recognized gain is $2,000

Explanation:

Data provided in the question:

Stock basis = $8,000

Fair market value = $6,000

Sale value = $10,000

Now,

Ralph's daughter  recognized gain or loss will be

= Sale value  - Stock basis

or

Ralph's daughter  recognized gain or loss = $10,000 - $8,000

or

Ralph's daughter  recognized gain or loss = $2,000

Here,

the positive value means that there is a gain.

Hence,

Her recognized gain is $2,000

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Companies often use social media influencers popular with their target market to promote their products. In this case, the influ
SSSSS [86.1K]

Answer:

C) aspirational reference group

Explanation:

An aspirational reference group can be described as a group of individuals with whom a person (or many millions in this case) wish to be associated with. This person will try to imitate their behavior, and most importantly their purchase behavior since he/she doesn't belong to that group but wishes he/she could.

7 0
3 years ago
Read 2 more answers
In the budget constraint framework, when the price of a good rises and demand for the other good decreases, what can you say abo
nignag [31]

Answer:

The increase in demand of the product with the higher price or decrease in demand for the other goods is because the substitution effect is outweighed by the income effect of price increase.

Explanation:

The above explanation in economics refers to Giffen Good. The idea behind this concept Giffen is that if you do not have money and there is an increase in the price of a fundamental product such as bread, it is still impossible to afford other alternatives, hence you will go ahead to buy bread or avoid buying any of the product. Hence, the demand for other product will also decrease in this case. This means that the demand for product with higher price or decrease in other substitute product is due to the fact that the income effect outweighs the substitution effect. Hence people do not have the money to even afford the alternative product.

8 0
3 years ago
Which model of abnormality focuses on learning and the thinking that underlies behavior?
Sonbull [250]

Answer:

The correct answer is: cognitive model.

Explanation:

The cognitive model of abnormality in psychology refers to the study of how people think and what their perceptions are and how they affect their behavior, emotions, and reactions. Because of internal and/or external factors, individuals' thoughts could be distorted. However, they can learn to discriminate between one and another so their perceptions adjust more to reality.

4 0
3 years ago
Whindy Corporation, an S corporation, reports a recognized built-in gain of $80,000 and a recognized built-in loss of $10,000 th
mihalych1998 [28]

Answer:

Built-in gains tax is $13,020 .

Explanation:

The built-in gains tax is one levied against an S corporation that used to be a C corporation, or received assets from a C corporation.  

Here,

Gain= $80,000

Loss= $10,000

Holds= $8,000

Income= $65,000

Corporate tax= 21%

To calculate the built-in gains tax, we will need to calculate the net gain of the corporation and multiply it by the tax rate.

= Built-in-gain - built-in-loss - unexpired NOL

80,000 - 10,000 - 8,000 = 62,000

Then

62,000 x 0.21 tax rate = 13,020

= 13,020

4 0
3 years ago
Praxis Corp. forecasts the following income statement for the next year:
Annette [7]

Answer: a. 1.42

b) 2.74

c) 3.89

Explanation:

a) The Degree of Operating Leverage measures how much operating Income will change by if Sales change.

It is calculated with the formula,

= (Sales - Variable Costs) / (Sales - Variable Costs - fixed costs)

= (960,000 - 532,000) / (960,000 - 532,000 - 127,000)

= 1.42

b) The Degree of financial leverage measures how much Income will change due to a change in operating Income.

The formula is,

=Earnings before Interest and tax / Earnings before Interest and tax - Interest or just Earning before tax

= 301,000/110,000

= 2.74

c. Degree of Total Leverage is a measure of how sensitive the net income of a company is to a change in goods produced and/or sold.

It is calculated by multiplying DOL and DFL.

= 1.42 * 2.74

= 3.89

Should you need any clarification just hit that comment button. Cheers.

3 0
3 years ago
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