Answer:
The journal entry for the issuance of the common stock is shown below:
Explanation:
Cash A/c.............................................Dr $33,000
Common Stock A/c........................Cr $30
Paid in Capital A/c...........................Cr $32,970
Working Notes:
Cash = Number of shares × Issue Price
= 3,000 × $11
= $33,000
Common Stock = Number of Shares × Par Value
= 3,000 × $0.01
= $30
Paid in Capital = Cash - Common stock
= $33,000 - 30
= $32,970
Answer:
D) $8,000 inventory, $0 land
Explanation:
Tyson's basis in the distributed inventory and land will be $8,000 inventory, $0 land
Because he initially first allocates his outside basis to the assets distributed which is in an amount that is equal to KT's basis which is ($20,000 cash and $8,000 land).
Therefore this results in a required decrease of $0 due to the basis he reduces in the land by the required decrease, which thereby results in a basis of $0 to the land.
English please
Reason: thats too freaking much .
