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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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Cala manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. the nego
Ivanshal [37]
Cost of Land:Purchase price for land: 264,000Purchase price for old building : 159,000Demolition cost for old building: 32,000Cost to fill and level lot: 47,304Total cost of Land:  502,304


Cost of new building and Land improvementCost of new building: 1,232,100Cost of land improvements: 77,774Total construction cost:  1,309,874

Land (Debit 502,304)Land improvement (Debit 77,774)Building (Debit 1,232,100)Cash (Credit 1,812,178)
5 0
3 years ago
Which financial activity helps a company based in another country
Lady_Fox [76]

Answer:

The correct answer is A

Explanation:

The financial activity is that activity which is undertaken by companies in order to accomplish their economic objectives and goals.

FDI (Foreign direct investment), which is an investment that is controlling the ownership or possession of the business in one country by an entity in another country.

Therefore, the FDI is the one activity which will help the company based in another country.

5 0
3 years ago
Mountaintop Clearview Corporation authorizes Niles, its employee, to oversee its timber operation. In the course of his employme
kotegsom [21]

Answer:

B) Mountaintop and Niles

Explanation:

Both Mountaintop Clearview Corporation and Niles are responsible for the illegal waste disposal.

When a company's employee is involved in an illegal activity or an accident while performing job related duties, both the employee and the company are responsible for the possible damages.

In this case Niles can be subject to criminal charges and Mountaintop to civil charges.

6 0
3 years ago
If Colombia spends 2 hours producing coffee and 6 hours producing oranges, and Cuba spends 3 hours producing coffee and 1 hour p
zimovet [89]

Answer: C. Colombia has an absolute advantage producing coffee, and Cuba has an absolute advantage producing oranges

Explanation:

From the question, we are informed that Colombia spends 2 hours producing coffee and 6 hours producing oranges, and Cuba spends 3 hours producing coffee and 1 hour producing oranges.

Since Columbia spends a lesser time producing coffee and Cuba spends a lesser time producing oranges, it means that Colombia has an absolute advantage producing coffee, and Cuba has an absolute advantage producing oranges.

8 0
3 years ago
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pentagon [3]

Answer:

Some African countries have mortality rates over 10%. For example, according to the most recent CIA estimates, in countries like Somalia, Central African Republic, Niger and Chad, there are around 90 deaths per 1,000 live births, which is a lot.

This extremely high mortality rate affects economic growth in the long run. First of all, most economists agree that human capital is the most important form of capital, and the one that helps boost economic growth the most.

Every child who dies is potential human capital loss (and a moral tragedy as well).

If medical aid increased in those African countries, and less children died at a young age, those children would help develop the economies. However, education is also needed. If the children survive but are not well-educated, they will not be very productive in the modern economy, which is knowledge-oriented.

8 0
3 years ago
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