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kati45 [8]
3 years ago
5

Nancy and her daughter, Kathleen, have been working together in a cattery called "The Perfect Cat." Nancy formed the business se

veral years ago as sole proprietorship, and it has been very successful. Assets currently have a fair market value of $450,000 and a basis of $180,000. On the advice of their tax accountant, Nancy decides to incorporate" The Perfect Cat." Because of Kathleen’s participation, Nancy would like her to receive shares in the corporation. What are the relevant tax issues?
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
3 0

Solution :

In the context, the relevant tax issues are :

1. The transfer to be subjected to tax deferred treatment under 351. It is a tax issue for transaction.

2. Kathleen receives stock in the exchange of the property transferred.

3. Receipt of the stock that is a gift from her mother is a relevant tax issue.

4. If Kathleen is not the transferor of the property and Kathleen receives the stock from the corporation, the transaction will be qualify as non taxable under 351.

5. Stocks received by Kathleen and Nancy is a taxable and so it is relevant to the tax issue.

6. The property in the hands of a corporation is always a tax issue.

7. The deductions that is allowed when the transfer of the stock for the rendering services for Kathleen.

8. The transfer of the stock is considered as gift to Kathleen by Nancy is a taxable transaction, so it is a relevant tax issue.

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Basically, "hearing the voice of the consumer" means taking the information that they have about what people want and actually putting the preferences of the consumer first.

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3 years ago
Calculate an activity rate for packing based on packing orders. a.$1.20 per packing order b.$9.00 per packing order c.$60.00 per
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Answer:

d.$10.00 per packing order

Explanation:

The formula to compute the activity rate for packing order is shown below:

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And, the total number of packing order = 400 + 2,000 = 2,400

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4 0
3 years ago
How do you make a profit in a bond?
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Hold those bonds until their maturity date and collect interest payments on them. The second way to profit from bonds is to sell them at a price that's higher than what you pay initially.

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2 years ago
When Pat was talking with his customer about the new accounting system, his customer mentioned that she thought the new system w
amid [387]

Answer:

overcoming reservations

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Sales presentation can be regarded as sales pitch and it's a selling technique which can be explained as line of talk which is an attempts of persuading someone or something, using a planned sales presentation strategy of particular product/service which is been designed to initiate as well as close a sale of that particular product or service, example of this is overcoming reservations which is a method of persuading customers.

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2 years ago
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gayaneshka [121]

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For the power of Attorney to be valid it needs to include certain things such as the names of both the Principal and the Agent who is to obtain the power. Both the principal and the agent must be properly identified as well.

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2 years ago
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