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bazaltina [42]
3 years ago
12

Riverwalk Corporation is liquidated, with Juan receiving $5,000 in money, other property having a $6,000 FMV, and a $1,000 mortg

age on the property. Juan's basis in his River walk stock is $8,000. Upon liquidation, Juan must recognize a gain of:_______.A) 0.B) $2,000.C) $3,000.D) $11,000.
Business
2 answers:
Lemur [1.5K]3 years ago
7 0

Answer:

B) $2,000.

Explanation:

Juan's gain/loss = net distribution - basis

  • net distribution = $5,000 (cash) + $6,000 (property) - $1,000 (mortgage) = $10,000
  • basis = $8,000

Juan's gain = $10,000 - $8,000 = $2,000

Even if Juan had previously transferred the property in a Section 351 exchange, he would still have to recognize a gain because the liquidation included other assets. If the liquidation had only included the land (e.g. FMV $11,000) and two years would have passed since the original Section 351 transfer, then Juan wouldn't have needed to pay taxes.

7nadin3 [17]3 years ago
5 0

Answer:

The correct option is B,$2000

Explanation:

The gain on the cash and property received by Juan can be computed thus:

Cash received                      $5,000

Property less mortgage:

Property value  $6000

Mortgage          ($1000)         $5000

Total                                        $10,000

less stock basis                       ($8,000)

gain on stock                           $2,000

Option A is since the value of cash and property received is not $8,000 which gives a no gain  no loss outcome.

Option C is wrong since the property mortgage of $1000 must be deducted from the property before computing the gain or loss.

Option D is obviously wrong as the $11,000 is just the summation of property value of $6000 without considering mortgage and the cash received.

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Answer:

The correct answer is the third option: Is the product already offered by competing firms?

Explanation:

To begin with, if the a company is looking forward to measure the success of a new product by asking three fundamental questions then the most important ones are those that implicates the satisfaction of the consumers and of the managers that work in the financial area due to the fact that they are the ones who make all the calculates and decide in what to invest, therefore that the success of the product will be achieved if it satisfies the technical requirements of the clients, if it is consider viable and valuable and if the sales were good enough to satify the producer's financial requirements.

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3 years ago
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KatRina [158]
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3 years ago
Dan would like to save $1,500,000 by the time he retires in 30 years and believes he can earn an annual return of 8%. How much d
Ket [755]

Answer:

$13,241

Explanation:

From the data we were given in the question:

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If the nominal interest rate is 4 percent and the inflation rate is 6 percent, then the real interest rate is a.-4 percent. b.-2
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The real interest rate given the nominal and inflation rate is -2 percent

<h3>How to calculate the real interest</h3>

The formula for calculating real interest given the nominal and inflation rate is expressed as:

Real interest rate ≈ nominal interest rate − inflation rate

Given the following

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Then the real interest rate given the nominal and inflation rate is -2 percent

Learn more on real interest here: brainly.com/question/25545513

7 0
2 years ago
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