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Amanda [17]
2 years ago
9

Pursuant to plan of reorganization adopted in the curren year, newman corporation exchanged property with an adjusted basis of 8

0,000 for 5,000 shares of jabot corporation stock. The Jabot shares had a fair market value of 95,000 on the date of the exchange. Newman Corporation was liquidated shortly after the exchange with its sole shareholder. Victor, receiving the jabot shares. Victor had a dollar 90,000 basis in the Newman shares surrendered.
1. As a result of the exchange, what are Victor's recognized gain and his basis in the jabot stock?
Business
1 answer:
Alenkinab [10]2 years ago
4 0

Answer:

Explanation:

Victor's recognized gain equals to zero, because this exchange qualifies under Sec. 368 as a tax-free reorganization.

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Bluestone Company had three intangible assets at the end of the current year:
ra1l [238]

Answer:

Bluestone Company

a. The acquisition cost of each intangible asset:

a. Patent $3,600

b. Trademark $8,000

c. Licensing Rights $90,000

b. The amortization of each intangible asset for the current year ended December 31:

a. Patent $3,600/12 = $300

b. Trademark $8,000 indefinite life $0

c. Licensing Rights $90,000/6 = $15,000

c. Balance Sheet as of December 31, of the current year:

Intangible Asset:

a. Patent                     $3,600

b. Trademark               8,000

c. Licensing Rights   90,000

Total Intangible      $101,600

less amortization       15,300

Net book value      $86,300

Income Statement for the year ended December 31 of the current year.

Amortization Expenses:

a. Patent                      $300

c. Licensing Rights $15,000

Explanation:

a) Data and Analysis:

a. Patent $3,600 Cash $3,600

b. Trademark $8,000 Cash $8,000

c. Licensing Rights $90,000 Cash $90,000

a. Acquisition cost of each intangible asset:

a. Patent $3,600

b. Trademark $8,000

c. Licensing Rights $90,000

b. Amortization of each intangible asset:

a. Patent $3,600/12 = $300

b. Trademark $8,000 indefinite life $0

c. Licensing Rights $90,000/6 = $15,000

8 0
2 years ago
A company looking to expand internationally with little risk would choose?
leva [86]

Answer:

  • Licensing
  • Franchising

Explanation:

There are no options but Licensing as well as Franchising are some of the least riskiest ways to expand internationally.

With Licensing, the company looking to expand simply sells licenses to various companies in different countries giving them the right to use their image. Basically, the company the license is sold to gets access to the seller's intellectual property but then can run their business with a significant degree of autonomy.

Franchising represents another way to expand with little risk. It involves a company giving a license to another company to sell and sometimes produce their products as well as image rights. The company will give the franchisee (company that gets the license) the knowledge and training required to maintain the franchise and in exchange, franchisee pays a fee.

Both of these methods ensure that the name and brand of a company spread internationally whilst making money from it. Risk is minimized because the investment in other countries is low to nothing.

3 0
3 years ago
Anka Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. An
katovenus [111]

Answer:

C. LIFO liquidation

Explanation:

Benson Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. In its footnotes, Benson Company is required to report the amount at which inventories would have been reported under FIFO method.

The difference between these two numbers is commonly referred to as LIFO Reserve.

LIFO reserve represents the difference in ending inventory using LIFO and ending inventory if FIFO were employed instead.

Third option is the correct option.

LIFO reserve = FIFO inventory cost - LIFO inventory cost

FIFO inventory cost = LIFO inventory cost + LIFO reserve

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Common knowledge includes declarations such as february is the shortest month of the year. with common knowledge, we do not need
katrin2010 [14]
If the statement above asks whether it is true or false. The answer would be true. It is because when you have common knowledge, it is not needed for it to be quoted for it is already common among people and it is already a knowledge of which people knows about without searching or asking about it. Quotation marks are only used when you try to quote or say things that are from the original author, information or who or where it came from and it's not yours. With common knowledge, there is no need to use them for it is already known by a lot of people and are too obvious for it to be asked of.
7 0
3 years ago
Give an example of how businesses use demographic information ECONOMICS
trapecia [35]

Businesses often segment the market based on key demographics such as age, gender, income level or marital status, but they also use more precisely defined categories to target specific groups.

3 0
3 years ago
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