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julsineya [31]
2 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]2 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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Venzuela Company’s net income for 2020 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issue
aev [14]

Answer:

$4.67 per share

Explanation:

The calculation of the diluted earning per share is given below:

= (Total income - preference dividends) ÷ (outstanding shares + diluted shares)

where,

Total income is $50,000

Outstanding shares is 10,000

And, the diluted shares is computed by following calculations

Amount paid towards shares = Options issued × Exercise price per share

= 1,000 × $6

= $6,000

And,

Value of options = Amount paid towards shares ÷ Current market price

= $6,000 ÷ $20

= 300

Therefore,

Diluted shares is

= Options issued - value of options

= 1,000 - 300

= 700

So Diluted Earnings per share is

= ($50,000) ÷ (10,000 + 700)

= $4.67 per share

4 0
3 years ago
How does supply and demand affect prices?
irakobra [83]
The higher the supply the lower the price will be and the higher the demand the higher the price will be. This means that they have an inverse relationship. In short, the more you need something the more you're willing to pay for it, and the less you need it the less you want to pay, and this is basically how the economy works when producing and selling.
3 0
3 years ago
Read 2 more answers
A law enforcement agent is in charge of getting a writing sample from an uncooperative suspect. the agent puts the suspect in a
zmey [24]
According to my opinion, what the agent did wrong is that he asked him to write the answers of the questions two more times because when we write again and again the same thing our handwriting changes.And what the agent did right is that he influenced him to compose all that he says as he directs the data to the suspect because in this way they can see whether the handwriting matches it or not.
5 0
3 years ago
Customers who shop at Books-A-Million find that it has a large selection of books, in addition to a helpful and friendly staff.
nika2105 [10]

Answer:

Position Strategy

Explanation:

The position strategy is the strategy in which the business focuses on the important things that will drive value for the organization. This way of developing customers choices and attracting them by added value in services is known as position strategy. The company here has focused on friendly staff and cappuccino offering along with a good selection of books. This means that the company has developed its image which is that scholars come here and that's the uniqueness of the position strategy.

Three things that the company has focused here:

  1. Friendly Staff
  2. Good selection of Books
  3. Cappuccino and other products that increases sales
7 0
3 years ago
Randy’s Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are
riadik2000 [5.3K]

Answer:

a. 8,200 pizzas

b. 17,400 pizzas

c. $17,100

Explanation:

The computation is shown below:

a. For break even point

= (Fixed expenses ) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $9 - $5

= $4

So, the break even point is

= $32,800 ÷ $4

= 8,200 pizzas

b. For target profit

The break even point is

= (Fixed expenses + target profit) ÷ (Contribution margin per unit)  

= ($32,800 + $36,800) ÷ $4

= 17,400 pizzas

c. And, the margin of safety in dollars is

= (Total sales - break even sales) × selling price per unit

= (10,100 pizzas - 8,200 pizzas) × $9

= $17,100

5 0
3 years ago
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