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Naddika [18.5K]
2 years ago
14

Jessica is a one-third owner in Bikes-R-Us, an S corporation that experienced a $45,000 loss this year (year 1).

Business
1 answer:
Arlecino [84]2 years ago
3 0

Answer:

a. $15,000

b. $10,000 & $3,000

c.  $3,000

Explanation:

a. The amount of loss deducted in a year will be equal to the stock basis in the company.

The excess amount of loss will be carry to the future years and deducted, if there is conditional stock basis in the company.

The amount is Jessica allowed to deduct in year 1: ($45,000 x 1/3) = $15,000

b. Her stock and debt bases in the corporation at the end of year 1:

=> Stock basis at the end of year 1: $10,000 - $10,000 = 0

=> Remaining amount of loss: $15,000 - $10,000 = $5,000 => Remaining loss: $5,000 - $3,000 = $2,000

So, Jessica has a suspended loss of $2,000 at the end of year 1

c. The profit is $12,000

Share of J: $12,000 x 1/3 = $4,000

Out of this $4,000, the $3,000 (one-third) will be its debt basis and $1,000 will be stock basis.

The amount of $2,000 loss will first be deducted from the stock basis and then from the debt basis.

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Firlakuza [10]

Answer:

Answer is explained in the explanation section below.

Explanation:

Data Given:

Material Cost Per Trailer = $500

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Labor Cost Remaining Per Trailer = $425

Formula to Calculate the number of Trailers:

X = X1 (N^{S})

Where,

N = number of Trailers

S = Slope Parameter

X = $425

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S = \frac{log \alpha }{log 2}

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Plugging in the values into the formula, we get:

S = \frac{log (0.85) }{log 2}

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Now, we can easily find the number of trailers.

X = X1 (N^{S})

Plugging in the values,

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Solving For N, we get:

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8 0
2 years ago
Marketing research is the process of defining a marketing problem and opportunity. True or False
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Answer:

TRUE

Explanation:

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1 year ago
During 2004, Thor Lab supplied hospitals with a comprehensive diagnostic kit for $120. At a volume of 80,000 kits, Thor had fixe
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Answer:

d. $240.00

Explanation:

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