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Leto [7]
3 years ago
12

On january 1, year 1, pearl corporation owned 90% of the outstanding stock of seso corporation. both companies were domestic cor

porations. pursuant to a plan of liquidation adopted by seso in march year 1, seso distributed all of its property in september year 1 in complete redemption of all its stock, when seso's accumulated earnings equaled $18,000. seso had never been insolvent. pursuant to the liquidation, seso transferred to pearl a parcel of land with a basis of $10,000 and a fair market value of $40,000. how much gain must seso recognize in year 1 on the transfer of this land to pearl?
Business
1 answer:
sergey [27]3 years ago
5 0

Answer:

$30,000

Explanation:

Data provided in the question:

Accumulated earnings = $18,000

Basis for land = $10,000

Fair market value = $40,000

Now,

Since, seso is under liquidation all the assets will be sold and stocks to be settled.

Thus,

Gain seso must recognize in year 1 on the transfer of this land to pearl

= Fair market value of the land - Basis for land

=  $40,000 - $10,000

= $30,000

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The structure of repayment for most long-term bonds consists of a. fixed coupon payments every year until maturity. b. interest
Margaret [11]

Answer:

The correct answer is letter "B": interest payments that vary by the yield to maturity each year.

Explanation:

Bonds are investments in the form of loans that companies provide. The firm pays investors a coupon yield, which is the annual or semiannual interest paid on the principal of the bond purchased. The payments continue until the bond reaches its maturity or the amount of the principal is completely paid off.

3 0
3 years ago
Pat invested a total of $3,000. Part of the money was invested in a money market account that paid 10 percent simple annual inte
adell [148]

Answer:

$800 in account that pays 10% interest

$2,200 in account that pays 8% interest

Explanation:

Account A = Money market account that paid 10% simple annual interest

Account B = Money market account that paid 8% simple annual interest

W1 = Proportion of money invested in Account A

W2 = Proportion of money invested in Account B

W1 + W2 = 1

therefore, W1 = 1 - W2

Principle amount = $3,000

3000 x W1 = Amount of money invested in Account A

3000 x W2 = Amount of money invested in Account B

Total interest earned = $256

R1 = 10% simple interest on Account A

R2 = 8% simple interest on Account B)

Total Interest = (Principle x W1 x R1) + (Principle x W2 x R2)

256 = (3000 x W1 x 10%) + (3000 x W2 x 8%)

256 = 300 W1 + 240 W2

256 = 300 W1 + 240 ( 1 - W1)

256 = 300 W1 + 240 - 240 W1

16 = 60 W1

W1 = 16 / 60

W2 = 1 - W1 = 1 - (16/60) = 11/15

Amount of money invested in Account A = 3000 x W1 = 3000 x (16/60) = $800

Amount of money invested in Account B = 3000 x W2 = 3000 x (11/15) =$2,200

6 0
3 years ago
Suppose Russia and Sweden each produce only paper and cars. Russia can produce 8 tons of paper or 4 million cars each year. Swed
azamat

Answer:

Attached grap with point A and B.

Explanation:

Russia will produce the cars as their production has te lower opportunity cost:

(Note: Opportunity cost is the amount of production resigned for the current output)

<u>Sweden pportunity cost for production car: </u>

25 ton of papper / 5 m cars = 5 tons per millon of cars

<u>Russia pportunity cost for production car: </u>

8 ton of papper / 4 m cars = 2 tons per millon of cars

With the trade set at 2 millon car for 6 tons of paper we get the following

Sweden produce 25 tons - 6 traded = 19

and receive 2 millon car

Russia produce 4 millon car - 2 traded = 2

and receive 6 tons of pappers

8 0
3 years ago
the fair debt collection practices act attempts to prevent abuses by select answer . specialized select answer and select answer
allsm [11]

The fair debt collection practices act attempts to prevent abuses by  <u>collection agencies</u>. The Option C is correct.

<h3 /><h3>What Is the Fair Debt Collection Practices Act (FDCPA)?</h3>

In United States, the Fair Debt Collection Practices Act is a federal legislation that limits the actions of third-party debt collectors who are attempting to collect their debts on behalf of another person or entity.

This Act restricts the ways that these collectors can contact debtors as well as the time of day and number of times that contact can be mad; and if the legislation is violated, the debtor can sue the debt collection company as well as the individual debt collector for damages and attorney fees.

In 2021, the Consumer Financial Protection Bureau have placed the Debt Collection Rule by clarifying how debt collectors can communicate with debtors.

Read more about Fair Debt Collection Practices Act

brainly.com/question/12272732

#SPJ1

6 0
1 year ago
The amount by which government expenditures exceed revenues during a particular year is the?
guajiro [1.7K]

Answer: Budget Deficit

Explanation:

8 0
1 year ago
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