Answer: d. Ron has income on the transaction of $21,000
Explanation:
Ron’s stock received for services counts toward the 80% control test so the transfers are eligible for IRC § 351 exemption.
This means that the total income that Ron has as a result of this transaction is the $21,000 for services.
Ron's basis will therefore be;
= Cattle basis + Income from services rendered
= 6,000 + 21,000
= $27,000
Answer:
Cohesiveness
Explanation:
By getting his team to work together and also attend meetings regularly, John is attempting to increase his team's cohesiveness.
This is because all of the activities that John is getting his team involved in is to ensure they work together and get used to each other, be comfortable around each other and understand each other. When all of these aforementioned are imbibed by the team members, the team would have a close bond which in turn will increase the efficiency and productivity of the team.
I hope this helps.
Answer:
Dr. Cash $3,549,590
Cr. Premium on Account Receivable $649,590
Cr. Bond Payable Account $2,900,000
Explanation:
The difference between the face value of the bond and the sale value of the bond is known as premium or the discount on the bond. If the face value is higher from the sale value the bond is issued on the discount and if the sale value of the bond is higher than the face value the bond is issued on the premium.
Premium on the Bond = Face value - Sale value = $3,549,590 - $2,900,000 = $649,590
The Premium will be amortized during the life of the bond to maturity and deducted from the interest expense.
Answer:
16.59%
Explanation:
We are given the present value of the bonds, their future value and the time, we need to calculate the rate:
FV = PV (1 + rate)ⁿ
- FV = 100,000
- PV = 999.38
- n = 30
100,000 = 999.38 (1 + rate)³⁰
(1 + rate)³⁰ = 100,000 / 999.38 = 100.062
1 + rate = ³⁰√100.062 = 1.1659
rate = 1.1659 - 1 = 0.1659 or 16.59%