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DanielleElmas [232]
3 years ago
9

Angie and Brad form Cats Are Us, Inc. Angie contributes $120,000 cash for 60% of the stock. Brad contributes an asset with an FM

V of $90,000 and an adjusted basis of $30,000 for 40% of the stock. Brad also receives $10,000 cash from the corporation. What is the corporation's basis in the asset received from Brad?
Business
1 answer:
insens350 [35]3 years ago
7 0

Answer:

$40,000

Explanation:

Calculation for the corporation's basis in the asset that was received

Using this formula

Corporation'sbasis in the asset received = Stock Adjusted basis + Cash received

Let plug in the formula

Corporation'sbasis in the asset received = $ 30,000 +$10,000

Corporation'sbasis in the asset received = $ 40,000

Therefore the Corporation'sbasis in the asset received will be $40,000

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Answer:

b. Sales, production, direct materials purchases, cash disbursements.

Explanation:

First, you calculate your sales.

Then, the amount produced to fulfill your sales and desired inventory stocks

Based on your production, you can calculate the direct materials purchases

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c.- you can't calculate how much will you pay for the direct materials without knowing how many direct materials are needed. INCORRECT

d.- you need to know the number of sales, to know how much to produce. Else you will be producing without knowing how much do you need. INCORRECT

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Answer:

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