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attashe74 [19]
3 years ago
6

Donald sells stock with an adjusted basis of $38,000 to his son, Kiefer, for its fair market value of $30,000. Kiefer sells the

stock three years later for $32,000. Kiefer will recognize a gain on the subsequent sale ofA) $0.B) $2,000.C) ($6,000).D) ($8,000).
Business
1 answer:
IrinaK [193]3 years ago
8 0

Answer:

The correct option is A

Explanation:

Gain on sale of stock = Selling Price - Cost

                                    = $32,000 - $30,000

                                    = $2,000

Previously disallowed loss = Market Value - Basis

                                            = $30,000 - $38,000

                                            = ($8,000)

Taxable Gain = Previously disallowed loss - Gain on sale of stock

                       = ($8,000) - $2,000

                       = ($6,000)

The previously disallowed loss could not decrease the gain below 0. Therefore, the Kiefer will recognize the gain at $0.

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Katen [24]
I would say the answer is D
3 0
3 years ago
"If the top two companies in the golf club industry merged, their new market share would equal 15% of the market. This industry'
Yakvenalex [24]

Answer:

Yes, the FTC would ignore the merger and allow it to go through.

Explanation:

here are the options to the question ;

O No, the FTC would probably challenge the merger

O Maybe. The FTC would scrutinize the merger and make a case-by-case decislon.

Yes, the FTC would ignore the merger and allow it to go through.

HHI is used to calculate market power.

if the HHI index is less than 1000 post merger, the merger would be allowed to go through.

If the HHI index is between 1000 - 1800 post merger and the change in HHI is more than 100 after the merger, The FTC would scrutinize the merger and make a case-by-case decislon.

If the HHI index is more than 1800 post merger and the change in HHI is more than or equal to 50, he FTC would probably challenge the merger

4 0
4 years ago
Metlock, Inc. has 5900 shares of 6%, $50 par value, cumulative preferred stock and 118000 shares of $1 par value common stock ou
MrRa [10]

Answer:

$23900

Explanation:

Given: Cumulative Preferred stock is 5900 shares of 6% at $50.

           Dividend paid in 2019= $11500

First lets calculate the value of preferred stock.

Preferred stock= 5900 shares\times \$ 50\times \frac{6}{100}

∴ Preferred stock= $17700.

Formula:

Dividend received by preferred stockholder= [Preferred\ stock +(Preferred\ stock-Dividend\ paid)]

⇒Dividend received by preferred stockholder=17700+(17700-11500)

⇒ Dividend received by preferred stockholder= 17700+6200= \$ 23900

∴ $23900 dividend received by preferred stockholder in 2020.

4 0
3 years ago
Timothy McGreggor, Attorney, P.C., began the year with total assets of $129,000, liabilities of $77,000, and stockholders’ equit
Ahat [919]

Answer:

Ending stockholders' equity $ 68.000

Explanation:

The net income for the year is Revenue - Expenses

so $ 113,000 - $34,000     =   Net Income $ 79,000

Stockholders Equity at end of year

Opening stockholders' equity                 $  52,000

Add: Net income for the year                  $  79,000

Less: Dividends Paid                                <u>$ (63,000)</u>

Ending stockholders' equity                    $  68,000

7 0
3 years ago
A company purchased a tract of land for its natural resources at a cost of $1,544,800. it expects to mine 2,020,000 tons of ore
Tasya [4]

The gradual decrease in the value of natural resource is called depletion. The deplection expense is calculated on the cost net off salvage value.

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Therefore, Depletion expense per ton of ore would be $0.64 per ton of ore.

5 0
3 years ago
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