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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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Answer:

C and E.

Explanation:

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There are three types of brokerage firms. They are:

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The discount brokerage provides less comprehensive services than the traditional one or the full-service brokerage. These services are provided via online as well by discount brokerage.

So, from the given options the correct options are C and E.

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3 years ago
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4 0
3 years ago
Bill Mason is considering two job offers. Job 1 pays a salary of $40,100 with $6,778 of nontaxable employee benefits. Job 2 pays
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7 0
4 years ago
Suppose the price of a gallon of ice cream rises from $4 to $5, and the price of a can of coffee rises from $2 to $2.50. If the
ExtremeBDS [4]

Answer:

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People likely will buy less ice cream, less coffee

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