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lesantik [10]
2 years ago
5

Inez transfers property with a tax basis of $200 and a fair market value of $300 to a corporation in exchange for stock with a f

air market value of $250 in a transaction that qualifies for deferral under §351. The corporation assumed a liability of $50 on the property transferred. What is the corporation's tax basis in the property received in the exchange?
Business
1 answer:
Mila [183]2 years ago
5 0

Answer:

$200

Explanation:

The adjusted basis is the value given to an asset (and used by the IRS) when you have to determine any capital gain or loss resulting from its sale. It should generally be the original cost of purchasing that asset.

§351 allows corporations to defer taxes from capital gains (or losses) resulting from the transfer of property in exchange for stocks.

Corporation's tax basis = $200

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A speaker who thinks uncritically looks for good reasons to accept or reject others' opinions.
liq [111]
That speaker tends to <span>closed-minded and impulsive.
The most important things for that speaker is most likely not finding the best outcome from the people around them that could be done if they just work together , but rather to become the center of attention by diminishing other people's value (putting them down)</span>
8 0
2 years ago
PAW Industries has 5 million shares of common stock outstanding with a market price of $8.00 per share. The company also has out
AlladinOne [14]

Answer:

A. 10.14%

Explanation:

1.Market value of PAW common stock:5,000,000*8=$40,000,000

2.Market value of PAW outstanding preferred stock=$10,000,000

3.Market value of PAW bonds outstanding=96,000,000(100,000*1000*96%)

Total Market value(1+2+3)=146,000,000

4.Cost of equity amount on common stock(19%*40,000,000)=7,600,000

5.Cost of preferred stock amount (15%*10,000,000)=$1,500,000

6.After tax cost of Debt amount(9%*66%*96,000,000)=$5,702,400

Total cost amount(4+5+6)=14,802,400

The WACC can be calcualted as: Total cost amount/Total market value

                                                        14,802,400/146,000,000=10.14%

The answer should be A. 10.14%

3 0
3 years ago
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,100 of dir
Zina [86]

Answer:

Total work in process = $12,900

Explanation:

Provided information,

Cost incurred during the month on this order

Direct Materials = $2,100

Direct Labor = $3,600

Provided overheads are 200% of the direct labor cost = $3,600 \times 200% = $7,200

Thus month end balance of work in process = $2,100 + $3,600 + $7,200

Total work in process = $12,900

Note: additional information regarding expenses to be incurred is to be ignored, and the above value is the value of work in process.

Total work in process = $12,900

7 0
3 years ago
F brown lent us 4000 giving us the money by cheque​
PSYCHO15rus [73]

Answer:

See below

Explanation:

This transaction is affecting the bank's balance and F brown accounts. It is increasing the bank balance( asset account) by 4000 and increasing accounts payable/F brown ( liabilities account) by 4000.

An increase in assets is debited while an increase in liabilities is credited.

The journal entry will be

Bank A/c Dr.  4000

F brown A/c           4000

3 0
2 years ago
Play Inc. owns 100% of Station Corp.'s common stocks. On January 1, 2015, Play sold to Station for $50,000 an equipment with a c
victus00 [196]

Answer:

There is unrealised profit on the equioment sold by Play inc to Statetion Corp.

the Adjustment include

  • Deduct net unrealised profit of $16,000  from Equipment
  • Deduct net unrealised profit of $16,000 from  Group(consolidated )retained earnings.

Amount to be recognized as unrealized profit in the consolidated income statement is $16,000

Explanation:

Computation of Net unrealized profit

Unrealized profit ( $50,000 - $30,000)                       20,000

Depreciation on Unrealized profit( 20,000/5)              <u>  (4,000</u>)

Net unrealized profit                                                      <u>   16,000</u>

5 0
3 years ago
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