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xxMikexx [17]
3 years ago
6

Tyson is a 25% partner in the KT Partnership. On January 1, KT distributes $16,000 cash, inventory with a $16,000 fair value (in

side basis $8,000), and land with a fair value of $8,000 (inside basis of $12,000) to Tyson. KT has no liabilities at the date of the distribution. Tyson's basis in KT is $24,000.
What is Tyson's basis in the distributed inventory and land?


A) $8,000 inventory, $12,000 land


B) $16,000 inventory, $8,000 land


C) $0 inventory, $8,000 land


D) $8,000 inventory, $0 land
Business
1 answer:
Marianna [84]3 years ago
4 0

Answer:

D) $8,000 inventory, $0 land

Explanation:

Tyson's basis in the distributed inventory and land will be $8,000 inventory, $0 land

Because he initially first allocates his outside basis to the assets distributed which is in an amount that is equal to KT's basis which is ($20,000 cash and $8,000 land).

Therefore this results in a required decrease of $0 due to the basis he reduces in the land by the required decrease, which thereby results in a basis of $0 to the land.

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Hawke Company had the following assets and liabilities on the dates indicated. December 31 Total Assets Total Liabilities 2019 $
sdas [7]

Answer:

2019:- 62000 Income ; 2020:- 24000 loss ;  2021:- 43000 Income

Explanation:

Assets - Liabilities = Capital   (Closing / Opening both)

Profit = Closing Capital - Opening Capital + Drawings - Additional Capital

(Opening Capital = 1st Jan , Closing Capital = 31st Dec) here

2019

Closing Capital = Closing Assets - Closing Liabilities  

400000 - 250000 = 150000

Profit = Closing Capital - Opening Capital + Drawings - Additional Capital

= 150000 - 100000 + 12000 =  62000 Income

2020

2020 Opening Capital = 2019 Closing Capital = 150000

Closing Capital =  Closing Assets - Closing Liabilities  

460000 - 300000 = 160000

Profit = Closing Capital - Opening Capital + Drawings - Additional Capital

160000 - 150000 - 34000 = 24000 loss

2021

2021 Opening Capital = 2020 Closing Capital = 160000

Closing Capital =  Closing Assets - Closing Liabilities  

590000 - 400000 = 190000

Profit = Closing Capital - Opening Capital + Drawings - Additional Capital

190000 - 160000 + 25000 - 12000 = 43000 Income

4 0
3 years ago
The Northern Division of Southwest Clothing Inc. forecasts (has budgeted) the following income statement for the upcoming year:
Alex

Answer:

Operating loss will decrease by $20,000

Explanation:

Operating loss from normal business activities and if the division is not shut down = $150,000.

Operating loss if division is shut down by the management = $130,000 ($480,000 - $350,000) because the management has determined that $350,000 of the $480,000 Fixed Costs shown would be eliminated if that happens.

So, if the Northern Division is shutdown, the Operating loss will decrease by $20,000 (From $150,000 to $130,000)

5 0
3 years ago
V8 juice has for years advertised itself as a refreshing and nutritional drink that contains eight different vegetables, and tha
Oliga [24]

Answer: Product line extension

Explanation:

Here, in this particular case the introduction of V8 mango and orange juice by the V8 corporation is the example of product line extension strategy. This strategy is used by the V8 organization in order to introduce the new item in  similar product line.  Here , the line extensions has taken place as the organization tends to introduces new items in similar product category.

7 0
3 years ago
Why is it important to conduct market research on your target audience before building your marketing plan
Yuki888 [10]
Its important to conduct market research on your target audience before building your marketing plan because you need to consider who your potential customers are before deciding on marketing strategies. Customers enjoy sharing their opinions, so market research will make your product sell more.
4 0
3 years ago
Imagine that you are serving as the general manager of a hotel. What three aspects do you think would be most important to the s
Strike441 [17]

Answer:

1. Create and give innovative experience.

2. Brand and reputation operation

3. Improvement in workers general welfare

Explanation:

As a manager in an hotel, I would Improve the facets of the hotel by

1. Create and give innovative experience. As a manager, I would ensure the hotel create and delivers top notch service considering there are competition in the hospitality industry.

2. Brand and reputation operation. When customers receives a world class experience, reputation is being created here. I would then sustain this reputation by making it a brand upon which the hotel will be identified with subsequently.

3. Improvement in workers general welfare. This is very critical to the success of the hotel. Once workers are well paid , it would spur them to work and align with the vision I have for the hotel.

8 0
3 years ago
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