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kati45 [8]
2 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]2 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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Lower-level managers are empowered to make decisions in a decentralized organization, which can increase motivation and job satisfaction.

<h3>What is motivation?</h3>

Motivation is the reason why humans and other animals begin, continue, or discontinue an activity at any particular time. Motivational states are typically viewed as internal forces that induce a desire to engage in goal-directed conduct.

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6 0
1 year ago
Celia is a college student who just took her first trip to Las Vegas. While there, she charged $2,000 on her new credit card. Wh
sveta [45]

Answer:

1)Celia actually did charge $3,000 on her credit card and admitted such to the credit card company, but argued she only had $2,500 in her  bank account to pay off the credit card.

Telling a bank or a credit card company that you do not have enough money top pay right now will not make them forgive the unpaid balance. They might offer you some type of agreement or schedule for you to pay for the remaining balance (in this case $500). A court will never rule in favor of a borrower just because they do not want to pay the whole balance and will not accept a payment schedule.

3) Celia and the credit card company agreed that Celia would pay $2,500 as full payment of the disputed debt, but Celia never paid the  $2,500.

When Celia and the credit card company reached an agreement to settle their dispute, that agreement is binding on both parties. Celia must pay the $2,500 and the credit card company will not charge any more money. But if Celia doesn't make the payment, she is not performing her part and the credit card company can sue her for it, and will probably win.

Explanation:

the options are missing:

  1. Celia actually did charge $3,000 on her credit card and admitted such to the credit card company, but argued she only had $2,500 in her  bank account to pay off the credit card.
  2. Celia actually did charge $3,000 on her credit card and admitted such to the credit card company. However, Celia had no money, so she  offered the credit card company her car in exchange for full payment of the debt and the credit card company accepted. Celia turned over  title to her car to the credit card company.
  3. Celia and the credit card company agreed that Celia would pay $2,500 as full payment of the disputed debt, but Celia never paid the  $2,500.
  4. Celia believed she did not charge anything on her credit card during her trip to Las Vegas. The credit card company claims she charged  $3,000 to the card while in Las Vegas.
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3 years ago
By definition, _______________ occurs when quantity supplied is greater than quantity demanded
Julli [10]

Answer: Surplus

Explanation:

5 0
2 years ago
During the second and third trimesters, the caloric needs of a pregnant woman increase by _____ kilocalories per day. 100-200 35
siniylev [52]
Assuming that you are perfectly healthy, such that you are in the appropriate age to be pregnant and you have a normal body weight, your calorie intake should increase by 350-450 calories per day. To be sure, you should consult your doctor.
3 0
2 years ago
evenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the ne
NeTakaya

Answer:

$86,950

Explanation:

Total Selling and administrative expense:

= Variable selling and administrative expense + Fixed selling and administrative expense

= (Units sold in August × Variable selling and administrative expense per unit sold)  + Fixed selling and administrative expense

= (11,300 × $1.50) + $70,000

= $16,950 + $70,000

= $86,950

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