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Korvikt [17]
3 years ago
15

Dunn received 100 shares of stock as a gift from Dunn's grandparent. The stock cost Dunn's grandparent $32,000, and it was worth

$27,000 at the time of the transfer to Dunn. Dunn sold the stock for $29,000. What amount of gain or loss should Dunn report from the sale of the stock?
Business
1 answer:
Romashka-Z-Leto [24]3 years ago
5 0

Answer:

The amount of gain or loss that DUNN should report is $0.

Explanation:

Here we have to take out what would be the gain or loss for Dunn when he sells the stock given to him as a gift by his grandparents. Here we have to clear out what would be the Dunn basis for gain or loss, so that we can tell whether he earned a gain or loss.

For Dunn to take out the basis for gain would be similar to the donors ( in this case his grandparents ) basis for gain which is $32,000 AND Dunn has sold the stock for $29,000, so he definitely hasn't made the gain.

For Dunn to take out the basis for loss , he will suffer loss when if the amount at which he sells the stock is less than the amount which was at the date of transfer of stock $27,000, and as it is given he sells the stock at $29,000 , which is more than $27,000, so he definitely hasn't suffered loss also.

Thus we can say that he has neither suffered loss nor earn a gain.

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Lloyd Inc. had sales of $200,000, a net income of //415,000, and the following balance sheet:
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Answer:

The firm's new quick ratio is  2.9

Explanation:

The current ratio is calculated as  

Current ratio = Current assets / Current liabilities

2.5 times = (Cash + receivables + Inventories ) / (Accounts payable + Other current liabilities)

2.5 = ($10,000 + $50,000 + Inventories) / $50,000

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Inventories = $65,000

Therefore, $85,000 worth of inventories were sold off.

If the funds generated are used to reduce the common equity that is by repurchasing the equity at book value.

Hence, the common equity amounts to $115,000

Calculating the ROE before the inventory is sold off:

ROE = Net income / Stockholder's equity

= $15,000 / $200,000

= 0.075 or 7.5%

Calculating the ROE after selling off the inventory:

ROE = $15,000 / $115,000

= 0.13 or 13%

The firm's new quick ratio is

Quick ratio = (Current assets - Inventories) / Current liabilities

= ($210,000 - $65,000) / $50,000

= 2.9

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3 years ago
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Kay [80]

The monetary arrangements made at bretton woods resulted in  <u>fixed  </u>exchange rates assigned to member nations’ currencies.

<h3>What is fixed exchange rate?</h3>

Fixed exchange rate can be defined as the way in which  currency does not varies but it is fixed.

When an exchange rate is fixed this means that the currency of a nation or country  is fixed to another country currency and does not fluctuate or vary.

Therefore the monetary arrangements made at bretton woods resulted in  <u>fixed  </u>exchange rates assigned to member nations’ currencies.

Learn more about fixed exchange rate here:brainly.com/question/11160294

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3 0
2 years ago
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Explanation:

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Answer:

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Specialty stores will often sell their products at a premium price. They offer excellent and friendly customer service. Employees at a specialty store have in-depth knowledge about their products and will provide expert advice to customers.

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Answer:

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