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Gre4nikov [31]
3 years ago
11

Juan transferred 100 percent of his stock in Rosa Company to Azul Corporation in a Type B stock-for-stock exchange. In exchange,

he received stock in Azul with a fair market value of $1,000,000. Juan's tax basis in the Rosa stock was $400,000. What amount of gain does Juan recognize in the exchange and what is his basis in the Azul stock he receives
Business
1 answer:
dybincka [34]3 years ago
6 0

Answer:

no gain is realized by juan. His basis in the Azul stock he receives is also the same $400,000 tax basis

Explanation:

According to section 368 of the internal revenue code of 1986, a type B stock-for-stock involves when the stock of a target company is traded in exchange for a portion of the stock of an acquiring company. When this occurs, the acquiring company takes over the shareholder of the target company and the target company is no longer part of its shareholders. However, the target company will now hold a minority shareholder of the acquiring company

From the question, Juan transferred 100 percent of his Rosa Company's stock to Azul Corporation in exchange for stock in Azul valued at $1,000,000 (except juan sells his Azul stock).

Therefore no gain is realized by juan. His basis in the Azul stock he receives is also the same $400,000 tax basis in the Rosa stock transferred to Azul Corporation.

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James Bright's company seeks markets all over the world and attempts to sell products that are a result of planned production fo
drek231 [11]

Answer: (D)  International marketing

Explanation:

 The international marketing is the process of satisfying the actual needs and the requirement of the different types of people inside and also outside the national borders.

The following are the various types of international marketing benefits are:

  • We can use the global web strategy
  • Direct investment
  • Export the various types of products and the services easily

 According to the given question, the international marketing is one of the stage which best characterized the Mr.Bright company in the market. Therefore, Option (D) is correct.

4 0
3 years ago
Boris Jasper is the manager of an auto parts division for a large auto parts supplier. The division makes dampers and oil pumps.
shepuryov [24]

Answer:

a) Raise the sales revenue.

b) Decrease the cost of raw materials.

c) Decrease discretionary fixed cost

Explanation:

<em>Return on Investment (ROI) = Divisional Profit Contribution / Assets Employed in the Division</em>

ROI increases when the  Divisional Profit Contribution increased and Assets Employed in the Division are reduced.

4 0
3 years ago
Roles of competition policy authorities in south Africa​
gladu [14]

Answer:

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4 0
3 years ago
For which pairs of goods is the cross-price elasticity most likely to be positive?.
algol13

The pairs of goods for which the cross-price elasticity would be postive are pens and pencils.

<h3>What is cross-price elasticity?</h3>

Cross price elasticity of demand measures the percentage change in the quantity demanded of good A to percentage change in the price of good B.

If cross price elasticity of demand is positive, it means that the goods are substitute goods. Substitute goods are goods that can be used in place of another good.

Here are the options of this question:

a. peanut butter and jelly

b. bicycle frames and bicycle tires

c. pens and pencils

d. college textbooks and iPods

To learn more about price elasticity of demand, please check: brainly.com/question/18850846

6 0
2 years ago
Which of the following statements regarding tax credits is true?
frutty [35]

The following statements regarding tax credits states that the deductions from a taxpayer's tax liability directly reduces the person's taxes due is true.

Explanation:

Tax credit is a amount of money that taxpayer's can subtract from taxes to be paid to the government. They reduce the taxable income and reduces the actual amount of taxes provided.

There are three basic types of tax credits they are non-refundable, refundable and partially refundable.

Earned income tax credit, Child tax credit are some examples of tax credits.

7 0
3 years ago
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