1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Katen [24]
3 years ago
11

Paper Corporation adopts a plan of reorganization and exchanges 1,000 shares of its voting stock and $50,000 in cash for Chase C

orporation's assets having a $200,000 adjusted basis and a $275,000 FMV. Chase Corporation is subsequently liquidated. What is Paper Corporation's basis in the assets acquired in the exchange?
Business
1 answer:
Elan Coil [88]3 years ago
3 0

Answer:

$200,000

Explanation:

According to the historical cost principle, the fixed assets should be recorded at the purchase cost or book value in the books of accounts, not the fair market value.

According to the given scenario, the Asset value should be recorded at the adjusted basis i.e $200,000 not the $275,000 i.e fair market value

The number of shares and the cash balance should be ignored.

You might be interested in
If scientists discover that eating bacon reduces cholesterol levels:
bulgar [2K]

Answer:

a. The demand for bacon will increase.

Explanation:

Scientists and other experts are known to influence customer perceptions of consumer products. Many customers make buying decisions based on expert opinions and reviews, which can greatly impact sales.

If scientists say that eating bacon reduced cholesterol, consumers' perceptions of bacon will change. Since this is positive or desired news, customers will increase bacon consumption. Bacon will attract many new customers, which will lead to an increase in its demand.

7 0
4 years ago
Compute the amount of gross profit from the sales in July. (Hint: Add any underapplied overhead to, or deduct any overapplied ov
sasho [114]

Answer:

Gross profit = $790000

Explanation:

Suppose:

Sales = 1000000

Cost of goods sold = 200000

Actual overhead = 100000

Direct labor used = 15000 hours

Predetermined rate = $ 6 per hour

Computation of gross profit:

         Sales =                                                                             1000000

less:<u> Cost of goods sold</u>                    =200000      

Add: under applied overhead (w#1) = <u>10000</u>

                                                                                                 (<u>210000</u>)

                Gross profit                                                              790000

(w#1) Applied overhead = Actual labour hours * predetermined rate

                                         = 15000 * 6 = $90000.

   Actual overhead                              =  <u>100000</u>

Under applied overhead                          10000

3 0
3 years ago
a car is purchased for $43,000. each year it loses 25% of its value. after how many years will the car be worth $9200 or less? (
Snowcat [4.5K]

After a car is purchased at $43000 and looses 25% worth every year then the car will be worth $9200 or less after four(4) years.

What does Purchase mean?

Purchase is a term used to refer to the acquisition of goods or services in exchange for money. It is a common business transaction and can involve buying something outright or entering into an agreement to pay for it over time.

What does Services mean?

Services is a broad term that refers to any type of work or activity performed to meet the needs of a customer. Services can range from professional services like accounting or consulting to tangible products like food or clothing. Services are typically intangible in the sense that they cannot be touched, felt, or seen, but the benefits they provide are very real.

As per the price of the car which is $43,000  and it looses 25% each year which is $10750. From this we come to know that the car will  be worth of $9200 or less within 4 years.

To know more about Purchase,

brainly.com/question/27975123

#SPJ4

5 0
1 year ago
Farmer Jones raises several hundred acres of corn and would suffer a significant loss should the price of corn decline at harves
evablogger [386]

Answer:

The correct answer is C. hedging.

Explanation:

Coverage, in finance, is the set of operations aimed at canceling or reducing the risk of a financial asset or liability in the possession of a company or an individual. Funds created for this purpose are called hedge funds.

The hedging operations consist of the acquisition or sale of a financial asset that is correlated with the element on which the coverage is to be established. Said acquisition or sale may be of shares, indices, interest rates, options, futures, etc.

7 0
3 years ago
Explain the relationship between the operations management goals of ""efficiency"" and ""effectiveness.""
professor190 [17]

Answer:

→Being efficient implies the system is operating the 'right' way.

    The relationship between effectiveness and efficiency is that effectiveness is a measure of 'goodness' of output,

→while efficiency is a measure of the resources required to achieve the output.

Explanation:

3 0
2 years ago
Other questions:
  • True or false?
    13·1 answer
  • Which of the following statements is true of product lines? Group of answer choices They require greater transportation and ware
    13·1 answer
  • Damian works at the Container Store. While he is placing inventory on the shelves, a customer comes up to him. The customer ment
    15·1 answer
  • Suppose NoGro, Inc. has just issued a dividend of $2.90 per share. Subsequent dividends will remain at $2.90 indefinitely. Retur
    14·1 answer
  • Walking through the grocery store, Ramon sees a "buy 2, get 1 free" deal on laundry detergent. Even though he currently has plen
    13·1 answer
  • Bentley estimates manufacturing overhead of $1,949,400 for 2019 and will apply overhead to units produced based on 722,000 machi
    8·1 answer
  • The payments a business makes for investing in capital expenses are known as : A) profits
    8·2 answers
  • Average daily balance definition
    14·1 answer
  • Early in 2018, the Excalibur Company began developing a new software package to be marketed. The project was completed in Decemb
    12·1 answer
  • What is the tragedy of the commons?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!