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icang [17]
3 years ago
10

Ben and John formed BCD Inc., a corporation, in 2013. Ben received 80% of the voting common stock, the only class of stock and J

ohn received the remaining 20% of the stock. In 2014, Ben transferred additional property to BCD Inc. The property had an adjusted basis to Ben of $40,000 and a fair market value of $50,000 on the date of the transfer. On the same day, and in exchange for the property he transferred to BCD Inc., Ben received cash of $15,000 and additional stock worth $35,000. How much gain was recognized by Ben as a result of this transaction
Business
1 answer:
Lady_Fox [76]3 years ago
8 0

Answer:

Gain recognized by Ben = $10,000

Explanation:

Given Data:

Adjusted basis of property=$40000

Cash received =  $15000

Additional stock received = $35000

Total received =  Cash received + Additional stock received

                        = $35000 + $15000

                        = $50000

 Gain recognized by Ben = Total received - Adjusted basis of property

                                          =$50,000  -$40,000

                                        = $10,000

Therefore, gain recognized by Ben  = $10,000

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Capital goods are goods that will be used in the future to produce more goods and services. True or False
MissTica

Answer:

The statement is: True.

Explanation:

Capital Goods are <em>assets with more than one year of useful life</em> that are used to generate other goods and income. <em>Capital goods and assets</em> as terms apply to the same category of resources but the context defines which one is being used. In the context of economic analysis, <em>capital goods</em> are used to refer to the amount of capital goods purchased and used in the overall economy. <em>Capital assets</em> is a term that is used more commonly in accounting and finance.

3 0
3 years ago
Four percent of the customers of a mortgage company default on their payments. a sample of five customers is selected. what is t
Maurinko [17]
We can use the formula for binomial distribution in calculating for the probability that exactly two customers out five will default on their payments.

The formula is:   P(r) = nCr*q^(n-r)*p^r   
Where:
n = sample size, 5
r = successes, 2
q = failure rate, 96% = 0.96
r = success rate, 4% = 0.04  

Substituting on the formula:
P = 5C2*0.96^3*0.04^2 
<span>P = 0.0142 or 1.42%</span>
8 0
4 years ago
what are some advice you would tell a friend or family member about managing their own money? is the advice that follow yourself
Jobisdone [24]

Answer: I would speak to my friend or family member about the importance of saving.

Explanation:

The conversation would be about how to save since many times people tend to buy and spend on many things and do not think long term. They think that money will always be there and that the bad times will never come. When we think of saving as something fundamental, we are thinking of our future, of having security.

is the advice that follow yourself?

This kind of advice and talk about money is something I apply to myself and have done for many years. I understand the importance of saving and try to be someone who puts what he preaches into practice.

why or why not?

For many years I have thought about the importance of saving. Before he was a person who spent and did not think about the future. Nowadays I put this advice into practice as I know how important it is to have money saved, which can be used for any emergency that arises. Saving money is something for wise people, it helps to have something to lean on. I always carry this financial advice with me, apply it to the measure and try to teach it to the people around me

8 0
3 years ago
Preferred stock is a "hybrid" security. Preferreds typically pay a fixed dividend, so they are a fixed-income security like a bo
alexdok [17]

Answer:

The correct answer is True.

Explanation:

The preferred share is one that confers on its owner an additional privilege, generally of an economic nature, compared to what we commonly call common shares.

As for ordinary shareholders, preferred shares do not expire, but nevertheless, unlike ordinary shares, they do not legitimize their holder the right to vote at general or extraordinary meetings of shareholders, and they do not attribute any equity participation of the society. Likewise, the profitability of preferred shares is also not guaranteed, since it is linked to obtaining benefits.

8 0
3 years ago
Read 2 more answers
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams est
Tatiana [17]

Answer:

an under applied of $10,300

Explanation:

The computation of the over applied or under applied is shown below;

Difference in overhead = Actual overhead - applied overhead

= $418,900 - ($227,000 × ($401,400 ÷ $223,000))

= $418,900 - $408,600

= $10,300

Since actual overhead is more than the applied overhead so it is an under applied of $10,300

7 0
3 years ago
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