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Aleks04 [339]
3 years ago
13

Julio is in the 32% tax bracket. He acquired 9,000 shares of stock in Gray Corporation seven years ago at a cost of $20 per shar

e. In the current year, Julio received a payment of $135,000 from Gray Corporation in exchange for 4,500 of his shares in Gray. Gray has E & P of $1,000,000. What income tax liabil-ity would Julio incur on the $150,000 payment in each of the following situations? Assume that Julio has no capital losses.
a. The stock redemption qualifies for sale or exchange treatment.
b. The stock redemption does not qualify for sale or exchange treatment.
c. How would your answer to parts (a) and (b) of Problem 49 differ if Julio were a corporate shareholder rather than an individual shareholder and the stock ownership in Gray Corporation represented a 25% interest?
Business
1 answer:
xxMikexx [17]3 years ago
4 0

Answer:

example below

Explanation:

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50 POINTS
SashulF [63]

Answer:

A. high school diploma

Explanation:

please put me in brainlist

4 0
3 years ago
Read 2 more answers
Parker Corp. owns 80% of Smith Inc.'s common stock. During Year 1, Parker sold Smith $250,000 of inventory on the same terms as
IrinaVladis [17]

Answer:

c. $500,000

Explanation:

Given that :

Parker Corp. owns 80% of Smith Inc.'s common stock

During Year 1, Parker sold Smith $250,000 of inventory

Therefore; adjusted for inter Corp. sales = $250,000

The following information pertains to Smith and Parker's sales for Year 1:

                         Parker                     Smith

Sales                 $ 1,000,000            $ 700,000

Cost of Sales    $400,000                $ 350,000

Total                   $ 600,000              $ 350,000

For the Unadjusted Cost of Sales of Parker and Smith = $400,000+$ 350,000

= $750,000

The amount that Parker should report as cost of sales in its Year 1 consolidated income statement = Unadjusted Cost of Sales - adjusted for inter Corp. sales

= $750,000 -  $250,000

= $500,000

7 0
3 years ago
Outdoor Gear Corporation manufactured 1,000 coolers during October. The following variable overhead data relates to October: Var
yanalaym [24]

Answer:

$1,482 unfavorable

Explanation:

Calculation to determine the variable overhead flexible-budget variance

Using this formula

Variable overhead flexible-budget variance=Variable overhead spending variance Unfavorable + Variable overhead efficiency variance Unfavorable

Let plug in the formula

Variable overhead flexible-budget variance=$1,300 (U) + $182 (U)

Variable overhead flexible-budget variance= $1,482 (U)

Therefore the variable overhead flexible-budget variance is $1,482 unfavorable

8 0
3 years ago
When a manager develops a cost of capital for a specific project based on the cost of capital for another firm that has a simila
Aneli [31]

Answer: Pure play

Explanation:

A pure play method in finance is an approach that is used to estimate and determine the cost of equity capital of a private company which involves looking at the beta coefficient of other single focused and public companies.

Pure-play companies are the companies that are involved in a single line of business.

5 0
3 years ago
Maris Bothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given below, and
vaieri [72.5K]

Answer:

I have prepared the cash disbursement schedule as requested,find it in the attached excel template.

Explanation:

Kindly note that data for other months whose cash disbursements are not required such February ,March and July had impact on the schedule one way or other,hence they are shown in the computation.

In addition, I have color blue to lay emphasis on the three months requested for.

Download xlsx
3 0
3 years ago
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