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Sedbober [7]
3 years ago
14

Scarlet Corporation, the parent corporation, has a basis of $600,000 in the stock of Brown Corporation, a subsidiary in which Sc

arlet owns 90% of all classes of stock. Scarlet purchased the stock in Brown Corporation 10 years ago. In the current year, Scarlet Corporation liquidates Brown Corporation and acquires assets worth $800,000 and with a tax basis to Brown Corporation of $950,000. What basis will Scarlet Corporation have in the assets acquired from Brown Corporation
Business
1 answer:
Anon25 [30]3 years ago
3 0

Answer:

$950,000

Explanation:

As per IRS section 332, in the case when the parent company received a property when the complete liquidation of subsidiary company is done so the receipts of such property would not recorded either any loss or gain. Also the basis of the parent company assets would be carry over basis.

So here the basis would be $950,000

The same is to be considered

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3 years ago
DS Unlimited has the following transactions during August.
m_a_m_a [10]

Answer:

See the journal entries below.

Explanation:

The journal entry will look as follows:

<u>Date      Account and explanation                 Debit ($)         Credit ($)   </u>

Aug 6     Inventory (50 * $100)                           5,000  

               Account payable                                                           5,000

<u><em>               (To record inventory purchased on account.)                            </em></u>

Aug 7      Inventory                                                 300

               Cash                                                                                  300

<em><u>                (To record payment of freight charges associated with the August 6 purchase.)</u></em>

Aug 10    Account payable (5 * $100)                   500

               Inventory                                                                           500

<u><em>                (To record the returns of defective five game devices to GameGirl.)</em></u>

Aug 14     Account payable (w.1)                        4,500

               Cash (balancing figure)                                                 4,455

                Inventory (w.2)                                                                   45

<u><em>                 (To record the payment of the full amount due to GameGirl.)   </em></u>

Aug 23    Account receivable (30 * $120)         3,600  

               Sales revenue                                                              3,600

                Cost of goods sold                             3,170

                Inventory                                                                       3170

<u><em>                 (To record the Sales and cost of 30 game devices purchased on August 6.) </em></u>

<u>Workings:</u>

w.1. Account payable = Purchases on account on August 6 - Defective inventory returned on August 10 = $5,000 - $500 = $4,500

w.2. Inventory = Discount received on account payable for paying within 10 days = w.1 * 1% = $4,500 * 1% =$45

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How are prices determined in a free market economy​
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If as a part of its business, a company routinely handles toxic materials, all employees who come into contact with the hazardou
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If as a part of its business, a company routinely handles toxic materials, all employees who come into contact with the hazardous materials should <span>be trained to safely handle and dispose of the materials! This is extremely important.</span>
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goldenfox [79]

Traditionally, older adults have been portrayed in a stereotypical manner by the American media.

<h3>What is stereotypical?</h3>

A stereotype is a generalized opinion about a specific group of people that are used in social psychology. People may have this expectation of every member of a given group. Expectations can take many different forms; they might relate to a group's personality, interests, appearance, or skill. Stereotypes can occasionally be true even when they are overgeneralized, unreliable, and resistant to new knowledge.

When applied to specific individuals, these generalizations about groups of people may be accurate, but they may also be incorrect, which is one of the causes of prejudice.

To learn more about stereotypical from the given link:

brainly.com/question/13281670

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