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
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.

You might be interested in
The following transactions were completed by Daws Company during the current fiscal year ended December 31:
boyakko [2]

Answer:

Explanation:

The T account is presented below:

                          Allowance for Doubtful Debts  

Jan 29                  $5,850                      Jan 1 Beginning balance $54,200

Aug 9                   $11,850                      April 18                 $4,000

Dec 31                  $52,160                     Nov 7                    $7,000

Dec 31   Unadjusted

              balance    $4,660                

                                                          Dec 31 Adjusting entry   $64,660

                                                          Dec 31 Adjusted balance $60,000

4 0
3 years ago
Which is not an intensity level of distribution?
nika2105 [10]
A.exclusive it’s not an intense level of distribution
4 0
2 years ago
Other things the same, which bond would you expect to pay the lowest interest rate?
Elis [28]

Answer:

d) a bond issued by the U.S. government

Explanation:

A bond issued by the US government will be expected to pay the lowest interest rate because the default risk is almost 0 with the US government which means that it is a risk free investment for the lender. The investor will be willing to lend money to US government at the lowest interest rate out of all the options because it is the safest investment therefore the investor's required rate of return is the lowest for US government.

3 0
2 years ago
Modern corporation operates a steel mill. it has never contributed anything to the local community, and it knowingly pollutes bo
svetlana [45]

I guess the correct answer is the narrow view, or invisible hand theory .

The narrow view, or invisible hand theory, holds that producing profit is more important than being socially responsible.

5 0
3 years ago
g Jordan Enterprises plans to issue $120,000,000 of 20-year semi-annual bonds in September to help finance a new factory. It is
Elanso [62]

Answer:

(a)  $900,000  semi annually

(b) $706,200

Explanation:

a).Total Period to issue 20 year semi-annual bonds=20×2=40

The Cost Of Debt to Company is Increase by = Value Of Bonds × Interest Rate × Semi Annual Year

= $120,000,000 × 1.5% × 1/2

= $900,000  semi annually

b). Consider face value of treasury bond is = $100  

Future contract that are currently trading at 129.2, its means yield to maturity is less than coupon rate, according to this we can say that Required rate of return is less than coupon rate.

According to this if interest rate increase by 1.5%, bond price will be increase by 1.5%  

Bond Traded at = $129.2 × 1.5% + $129.2

= 1.938 + 129.2

= $131.138

Jordon Earn From Future = Future Contract × (Bond Traded - Currently Trading)

= $100,000 × ( $131.138 - $129.2)

= $193,800

If hedge, net outcome will be = $900,000 - $193,800

= $706,200

8 0
3 years ago
Other questions:
  • Which savings account can a financial institution end?
    15·1 answer
  • Week 3 and week 4 calculation and explanation required
    12·1 answer
  • . Jeff works as a computer repair technician. He has money in a savings account and he owns some stock. What types of income doe
    6·1 answer
  • If the expected proportionate change in the nominal exchange rate, measured in units of domestic currency per unit of foreign cu
    12·1 answer
  • "Sanchez Company engaged in the following transactions during Year 1:
    5·1 answer
  • 1. One advantage of sole proprietorship is:
    9·1 answer
  • g Bob is a wheat farmer, but also likes to give fiddle lessons. One spring day, Bob faces a choice: spend ten hours planting whe
    13·1 answer
  • Winston Enterprises would like to buy some additional land and build a new factory. The anticipated total cost is $175.86 millio
    7·1 answer
  • Which of the following locations can NOT be insulated to promote energy conservation?
    5·1 answer
  • How long do you have to work to qualify for unemployment?.
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!