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NemiM [27]
3 years ago
5

Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In

the exchange, Red Blossom received land with a fair market value of $500,000. The corporation's basis in the Tea Company stock was $300,000. The land had a basis for Tea Company of $600,000. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives?
Business
1 answer:
skelet666 [1.2K]3 years ago
8 0

Answer:

$200,000 and $500,000      

Explanation:

The computations are shown below:

For gain recognized:

= Fair market value of the received land - corporation basis

= $500,000 - $300,000

= $200,000

For land basis received by Red Blossom corporation:

= $500,000

It records only the fair market value of the land, not the land basis for tea Company so only $500,000 would be considered

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Answer:

The value of the inventory at the lower of cost or market price is:

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Explanation:

a) Data and Calculations:

Product  Inventory    Cost per Unit  Market Value per Unit     LCNRV

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Model A       12                $106                   $102                  $1,225 (12*$102)

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Model D     31                     85                      88                     2,635 (31*$88)

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Total cost of inventory based on LCNRV (per item)        $21,170

3 0
3 years ago
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Answer:

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3 0
1 year ago
Bade Midwifery's cost formula for its wages and salaries is $1,230 per month plus $240 per birth. For the month of October, the
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Answer:

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