Answer: <em>Loss = $8000</em>
<u><em>Option (e) is correct.</em></u>
Given:
Jerry sold stock to Julie for $5,000
The stock cost Jerry $10,000
Jerry sold Carol stock for $2,000 that cost $10,000
Here; it should be noted that, Jerry and Julie are brother and sister.
whereas;
Jerry and Carol are unrelated party.
Here, the total loss will be computed in regards with the unrelated party:
Loss = Price of stock - Selling price
Loss = $10000 - $2000
Loss = $8000
The type of account that is typically the most liquid is the one that could be easily converted into Cash within short period of time. Such as : Checking Account. In order to turn Checking account into cash, you just have to bring it to the bank
Answer:
$30,500
Explanation:
As stone receives compensation in the form of stock and is having 100% control over the corporation ( required is minimum 80%) the transaction qualifies for tax free transfer. (IRC 351). So, adjusted basis is taken into consideration for determining the basis for corporation ( under sec 362).
So the Corporations total basis for transfered assets =$500+$30000 =$30500
<u>Explanation</u>:
Remember, Implicit cost refers to cost that do not involve monetary transactions by Jacques, while his Explicit cost includes all forms of direct payments made by Jacques to others while selling his boat.
<u>Therefore, the cost are assigned below:</u>
- The $50,000 salary Jacques could earn if he worked as a financial advisor= Implicit Cost
- The $15,000 rental income per year Jacques would receive if he chose to rent out his showroom= Implicit
- The wholesale cost of $430,000 and utility bills totaling $301,000 cost for the boats that Jacques pays the manufacturer= Explicit Cost