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nignag [31]
3 years ago
8

The stock of Mulberry Corporation is owned by Archana (60%) and Anar (40%), who are mother and daughter. Pursuant to a plan of c

omplete liquidation adopted earlier in the current year, Mulberry distributes land worth $1,364,000 to Anar (basis of $218,240 in Mulberry stock). The land was purchased by Mulberry Corporation three years ago for $1,773,200, and it is distributed subject to a liability of $1,091,200.
What amount of gain or loss is recognized by Mulberry Corporation and by Anar with respect to the distribution of the land?
Business
2 answers:
Vikki [24]3 years ago
5 0

Answer:

We have a loss of $109,120

Explanation:

Based on the scenario

Our variables are as follows,

market value =$1,773,200

Purchased value = $1,364,000

To calculate the loss been recognized is seen below

Loss recognized = Market value − Purchase value

Which we have has

=$1,773,200-1,364,000

=$409,200

The loss been recognized by Mulbery Corporation is $409,200

Also, let's determine the loss or gain of Anar corporation

Purchased value = $1,364,000

Liability = $1,091,200

actual basis of Mulberr stock = $218,240

We can calculate it using these method

Loss by Anar =Purchase value − Liability − Actual basis of Mulberry stock

Substituting the values, we have

=[(1364000 - 1091200)×40%]−$218240

=$109120−$218240

=$109,120

We have a loss of $109,120

Phoenix [80]3 years ago
4 0

Answer:

There is loss of $109,120

Explanation:

Lossrecognized=Marketvalue−Purchasevalue

=$1773200-1364000

Therefore, loss recognized by “M” Corporation is $409,200

Determine the gain or loss of A:

LossbyA=Purchasevalue−Liability−ActualbasisofM

=[($1364000-$1091200)×40%]−$218240

=$109120−$218240

=($109,120)  loss

​

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Coronado Company received proceeds of $209000 on 10-year, 5% bonds issued on January 1, 2016. The bonds had a face value of $220
Aleksandr [31]

Answer:

Coronado Company

The amount of gain or loss that Coronado would report on its 2018 income statement is:

= $13,200.

Explanation:

a) Data and Calculations:

Bonds proceeds = $209,000

Bonds face value =  220,000

Bonds Discounts = $11,000

Period of bonds = 10 years

Straight-line amortization = $1,100 annually

Interest payment = annually

Coupon rate rate = 5%

Fair value on January 1, 2017 = $210,100 ($209,000 + $1,100)

Fair value on January 1, 2018 = $211,200 ($210,100 + $1,100)

Call price = 102

Total call value (cash payment) = $224,400 ($220,000 * 102/100)

Loss to report on its 2018 income statement = $13,200 ($224,400 - $209,000 - $2,200)

6 0
3 years ago
Which of the following is an essential part of being an entrepreneur?
Molodets [167]

Answer:

B. Taking risks.

Explanation:

4 0
3 years ago
A researcher was interested in the relationship between the number of texts sent in a day and the number of e-mails sent in a da
mixas84 [53]

Answer:

A. 14

Explanation:

the researcher claims that the width of the interval would have been smaller if the sample had been different, and in this case different refers to larger. The original sample included only 15 people, so in order to increase the data sample, you must include more than 15 people. That is why 14 doesn't make sense.

3 0
3 years ago
Run Like the Wind sells ceiling fans. Target profit for the year is $470,000. If each fan's contribution margin is $32 and fixed
PSYCHO15rus [73]

Answer:

c. 21,645

Explanation:

The computation of number of fans required to meet the company's goal is shown below:

= (Fixed cost+ target profit) ÷ (Contribution margin per unit)  

= ($222,640 + $470,000) ÷ ($32)

= ($692,640) ÷ ($32)

= $21,645

The contribution margin per unit = Selling price per unit - Variable expense per unit  

Therefore, the number of fans equal to $21,645  

We calculated by above formula.

4 0
3 years ago
Melissa is about to get a $200 per month raise. she wants a new television and some furniture. she has $500 in her savings accou
yKpoI14uk [10]
There are two different options I would give her:

1) You can use your credit card now if you know that within the 30 days of purchasing the T.V. (or how ever many days until interest accrues if sooner) you will have enough money to properly pay your card off so that you aren't charged interest. Once you add interest, the T.V. becomes a much larger expense overtime due to paying the interest. Also, if it's a card that you get cash back for, you can 'make money' essential on your purchase because you'll get cash back.

2) Wait for the raise, what if the raise doesn't happen? What if something unexpected happens and you've used all your funds for a T.V. that isn't a necessity. There are so many reason to wait and pay cash for something. In this situation I probably wouldn't use all of my appropriated emergency funds for a T.V. and save the extra money from the raise. 
7 0
3 years ago
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