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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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4 0
3 years ago
A company has a selling price of $1,800 each for its printers. Each printer has a 2 year warranty that covers replacement of def
Afina-wow [57]

Answer:

$90,000

Explanation:

Data given in the question

Selling price = $1,800

Estimated percentage = 2%

Average cost = $150

Number of printers sold = 30,000

Under the warranty, the printer under service = 400

So by considering the above information, the warranty expense is

= Number of printers sold × estimated percentage × average cost per printer

= 30,000 × 2% × $150

= $90,000

8 0
3 years ago
True or false? Almost every phase of business and economic activity falls under some form of government regulation.
Mnenie [13.5K]
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7 0
3 years ago
Clonex Labs, Inc., uses a process costing system. The following data are available for one department for October:
Alex73 [517]

Answer:

Equivalent units of Production = 46500 & 37800

Explanation:

At the start of October, Clonex Labs inc, started with 385000 units into production and at the end of the month it had completed 409000 units this means the difference between 409000 and 385000 is the number of units transferred to the next department (i.e 24000), now that we have computed this, we find ending work-in-process as follows:

Clonex Labs, Inc.                                           Materials   Conversion

Units transferred to the next department:    24000        24,000

Ending work in process :

Materials : 30000x75%                                  22500

Conversion : 30000x46%                                                    13800

                                                                      -------------        -------------

Equivalent units of Production =                    46500           37800            

                                                                     =========        ========  

3 0
3 years ago
Suppose a competitive firm has​ cost, C​ = ​(0.002q3​) ​+ (22q)​ + 750, marginal​ cost, MC​ = 0.006q2​ + 22, and​ revenue, R​ =
aniked [119]

Answer:

 Options B and C are correct.

  • Marginal profit is negative.
  • Profit is positive.

Explanation:

At q = 150

R = 80q = 80(150) = 12,000

C = 0.002(150)3 + 22(150) + 750 = 6750 + 3300 + 750 = 10,800

R > C so first is incorrect.

MR = 80

MC = 0.006(150 x 150) + 22 = 135 + 22 = 157

MC > MR so B is correct.

Profit = TR - TC = 80(150) - 0.002(150)3 - 22(150) - 750 = 12000 - 10800 = 1200

Profit is positive.

Marginal profit = MR - MC = 80 - 157 = - 77

MR is Negative

3 0
3 years ago
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