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Valentin [98]
2 years ago
10

On July 1, of the current year, Robert forms the Yew Corporation. In exchange for 100 percent of the corporation's stock, Robert

contributes land with a fair market value of $100,000. Robert acquired the land 5 years ago at a cost of $30,000. At the date of the contribution, the land is subject to a $10,000 mortgage which the corporation assumes. What is the basis of the land to Yew Corporation
Business
1 answer:
SOVA2 [1]2 years ago
5 0

Answer:

$20,000

Explanation:

Based on the information given the basis of the land to Yew Corporation will be the amount of $20,000 which represent the cost of acquiring the land less mortgage reason been that we were told that the land was acquired by Robert 5 years ago at the amount of $30,000 in which it was subject to $10,000 mortgage.

Hence,

Basis=Cost of land -Mortgage

Basis=$30,000-$10,000

Basis=$20,000

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Ag-Coop is a large farm cooperative with a number of agriculture-related manufacturing and service divisions. As a cooperative,
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See complete solution in the picture attachment.

Explanation:

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Sunny Day Manufacturing Company has a current stock price of $22.35 per share, and is expected to pay a per-share dividend of $2
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Answer:

Alpha Moose Transporters's retained earnings breakpoint is B. $1,655,556

Explanation:

Addition to retained earnings = $745,000

Weight of equity = 45%

Retained earnings breakeven = $745,000 / 45%

= $1,655,556.

Retained earnings breakeven is $1,655,556.

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3 years ago
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3 years ago
On April 10, Caryâs Carpet Cleaning, Inc. borrows $15,000 from a bank, depositing those funds in its bank account and signing a
Gnom [1K]

Answer:

Cash A/c Dr $15,000

  To Notes payable A/c $15,000

(Being the bank borrowing through a note payable is recorded)

Explanation:

The journal entry is shown below:

Cash A/c Dr $15,000

  To Notes payable A/c $15,000

(Being the bank borrowing through a note payable is recorded)

This transaction increases the cash balance so the cash account should be debited and the note payable account should be credited as it creates a liability which is to be reflected in the balance sheet

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3 years ago
On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation. The lease agreement calls for
Mars2501 [29]

Answer:

1. $3,799,988

2. $3,419,989

Explanation:

1. Semiannual lease payment = $468,683

Total semiannual payments = 5*2 = 10

Incremental borrowing rate = 10%, 5% semiannual

Present value of minimum lease payments used to record right to use assets = Semi Annual lease payments * Cumulative PV Factor of annuity due for 10 periods at 5%

= $468,683 * 8.1078 = $3,799,988.0274 ≈ $3,799,988

2. Semiannual payment on 30.06.2021 = $468,683

Pretax amount of liability on 30.06.2021 = ($ 3,799,988.0274 - $468,683) = $3,331,305.0274

Interest expense for 31.12.2021 = $3,331,305.0274 * 5% = $166,565.25137

Semiannual lease payment on 31.12.2021 = $468,683

Pre tax amount for liability December 31, 2021 = $3,331,305.0274 + $166,565.25137 - $468,683 = $3,029,187.2788

Depreciation on right to use assets for 2021 = ($3,799,988.0274 ÷ 5) * (5/10)= $379,998.80274

Pre tax amount of right to use asset to be reported for 2021 = $3,799,988.0274 - $379,998.80274 = $3,419,989.2247 ≈ $3,419,989

5 0
3 years ago
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