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
Answer:
Explanations:
the only asset not in the Intangible asset is the Prepaid Insurance which is a current asset.
Answer:
Buyers try to minimize what they spend by buying at the lowest price and not purchasing if the price is too high. Because of this we have the law of demand in which quantity demanded decreases as price increases. On the other hand, sellers try to maximize their earnings by increasing quantity supplied as high as price allows (the law of supply states that as price increases, so does quantity supplied). The price in which the two parties compromise is the market clearance price.
Now lets look at the price of bubble gum, an elastic good. When sellers list this product at a higher price they are more willing to supply more products to their buyers. Buyers however will respond to an increase in price with a decrease of bubble gum purchases. These two counteracting parties set a limit on the price of gum and the quantity supplied. This illustrates the concept of the invisible hand driving the market to find the clearance price, or equilibrium, of bubblegum.
Answer: the profits of corporations and the dividends shareholders receive are taxed, which is currently the case in the United States.(C)
Explanation:
The double taxation of dividends explains how corporate earnings and dividends in the United States are taxed.
Corporations pay taxes on the earnings they make and the dividends paid to the shareholders out of the remaining earnings are also taxed. In the United States, taxes generate a huge amount of income to the government.
