When calculating the long term capital gain on the sale of the property, it is important to make sure adjustments are made from the original date of purchase and when the land was gifted.
To solve:
Adjusted amount = Original purchase amount + (gift tax X difference in what the land was worth/original land worth amount)
Adjusted amount = $20,000 + ($40,000 X $80,000/$100,000)
Adjusted amount = $52,000
Land owned for $200,000
Adjust amount is $52,000
$200,000 - $52,000 = $148,000
The long-term capital gain on the property is $148,000.
The form of Foreign direct investment used to acquire the existing machine parts manufacturer in Mexico, Robertson Corp based in Ohio is called a greenfield investment.
<h3>What is a
greenfield investment?</h3>
A greenfield investment refers to a foreign portfolio investment whereby a company buys the stocks or bonds of an existing company.
In conclusion, the acquisition of Robertson Corp in other to establish new operations in a northern Mexico is called a greenfield investment.
Read more about greenfield investment
<em>brainly.com/question/8948781</em>
Answer:
Compilations.
Explanation:
A compilation is part of the write-up service of accounting firms that involves conversion of data into financial statements without providing assurances or auditing services.
A compilation report usually accompanied the financial statements to show that data is well represented, and also to show that there has been no audit so the accountant is not giving an opinion.
So the CPA will not be violating independent rules by working on compilations.
