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julsineya [31]
3 years ago
8

Dove and Eagle formed a business entity in which they are equal owners. Dove contributed cash of $100,000, and Eagle contributed

land with a basis of $40,000 and fair market value of $100,000. For its first year of operations, the entity had taxable income of $60,000 and made no distributions. At year end it had outstanding recourse liabilities to third parties of $10,000. Eagle had a basis of $70,000 in the entity at the end of the first year of operations. What type of entity was formed
Business
1 answer:
nlexa [21]3 years ago
4 0

Answer:

S corporation

Explanation:

In the given case, The eagle basis at the closing of the year is 70,000 i.e. $40,000 + $30,000 (50% of $60,000)

In the case when the entity was a general partnership so 50% of $10,000 i.e. $5,000 would be added to the basis of Eagle

So here the type of entity that was formed is S corporation

The same is relevant

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When a company discontinues an operation and disposes of the discontinued operation (component), the transaction should be inclu
Ne4ueva [31]

Answer:

1. an amount after continuing operations.

Explanation:

In preparing the income statement the transactions resulting into gain or loss from the discontinued operations are always reported in income statement.

For this there is special heading that is

Amount after continuing operations

This basically reflects the gain or loss from the sale of such segment.

This provides for reporting all the transactions as part of business but in an highlighted manner.

4 0
3 years ago
When the economy slips into a recession, normally the demand for bonds ________, the supply of bonds ________, and the interest
Leno4ka [110]

Answer:

b. decreases; decreases; falls.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

Recession can be defined as a period of economic meltdown, in which there's a general decline in all economic activities such as trade.

Hence, when the economy slips into a recession, normally the demand for bonds decreases, the supply of bonds decreases, and the interest rate falls, ceteris paribus (everything else held constant).

5 0
3 years ago
An equivalent description of the holding of a receive-floating pay-fixed swap is as follows: A. An exchange of a long position i
serious [3.7K]

Answer:

The correct answer is

A)  An exchange of a long position in a fixed-rate bond for a short position in a floating-rate note.

Explanation:

Swapping a fixed interest for a floating one can occur if the fixed interest tenure in comparison to a floating exchange rate becomes less expensive for the entity who took the loan.

Also executing a swap in interest rates (that is giving up the fixed tenure for the floating tenure) helps to ensure that liabilities are kept at minimum whilst assets are maximised.

It is important to note that the capital remains unmodified.

Cheers

4 0
2 years ago
Now suppose that Congress, concerned about the welfare of the working class, passes a law setting a minimum wage that is 10 perc
zlopas [31]

Answer:

hello your question is incomplete attached below is the complete question

A )   $7.766

B )   4350 workers

C )   61777.20

D )    $33782.10

Explanation:

A) Real wage = 4 *  (\frac{K}{L} )^{0.2}

 where ; K = 120000,  L = 7000

   hence Real wage = 7.06  before 10% increase

After 10% increase ; Real wage =  7.06 + (7.06 * 0.1 )  = $7.766

B) employment ( L )

L = \frac{4^5 * K}{W^5}   =  L = \frac{1024*120000}{28247.95}  =  4350 workers

C) Output

Y = 5 ( 120000 )^0.2  *  (7000)^0.8

    = 61777.20

D) Total amount earned by workers

      L * W = 4350 * 7.766

            =  $33782.10

3 0
3 years ago
Preferred stock is like long-term debt in that ___________. A. it promises to pay to its holder a fixed stream of income each ye
AlekseyPX

Answer:

A. it promises to pay to its holder a fixed stream of income each year.

Explanation:

In Business, stock can be defined as having an equity or ownership by an individual in an organization. Generally, stocks are of two (2) types and these are;

1. Common stock.

2. Preferred stock.

Preferred stock refers to the securities which represents an individual's ownership or share in an organization and having a fixed claim over common stocks in earnings and assets.

Also, the preferred stock pay a fixed amount of interest regularly rather than being paid as a dividend only.

Hence, preferred stock is like long-term debt in that it promises to pay to its holder a fixed stream of income each year. This simply means that, the preferred stockholders are given more priority than the holders of common stocks. Therefore, in the event of liquidation of a firm the preferred stockholder can claim the assets belonging to a the firm.

There are four (4) types of preferred stocks and these are;

1. Perpetual preferred stock.

2. Exchangeable preferred stock.

3. Convertible preferred stock.

4. Cumulative preferred stock.

5 0
3 years ago
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