1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Semenov [28]
3 years ago
7

Brody owns all the stock in Mongoose Corporation. Brody has a basis of $200,000 in the Mongoose stock, which currently has a fai

r market value of $500,000. Mongoose is merged into Chestnut Corporation. Brody receives Chestnut preferred stock worth $200,000 and common stock worth $300,000. Brody recognizes a gain of:______.
a. $300,000.
b. $100,000.
c. $200,000.
d. None of the above.
Business
1 answer:
oee [108]3 years ago
3 0

Answer:

d. None of the above.

Explanation:

Option D is correct because Brody has a basis of $200000 Mongoose stock and its market value is $500000. After the merger, Brody receives $200000 preferred stock and $300000 common stock which is equal to its market value of a stock before the merger so there is no gain.

You might be interested in
Kraft, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2013.
Drupady [299]

Answer:

The amount of pension expense reported for 2013 is $330,000

Explanation:

In order to calculate the amount of pension expense reported for 2013 we would have to use and calculate the following formula according to the given data:

amount of pension expense reported for 2013= $250,000 + ($2,400,000 × 0.10) - ($1,600,000 × 0.10)

amount of pension expense reported for 2013= $330,000

The amount of pension expense reported for 2013 is $330,000

8 0
3 years ago
Marion Industries has an average accounts receivable turnover ratio of 12 times per year whereas most of its competitors have a
deff fn [24]

Answer:

C. using more liberal credit terms to increase sales

Explanation:

According to the question  it is given that the ratio of account receivable turnover has measured that comes 12 times which means it took 30 days

= 365 ÷ 12

= 30.41

= 30 days

But according to the competition, the ratio of account receivable turnover is 8 times so the competitor took 45 days

Therefore the Management of marian would have more liberal credit terms that would increase the sales

5 0
3 years ago
HELPPPPP please!!
vlabodo [156]

Answer:

B

Explanation:

I'm taking public speaking in college now dress is important because it conveys the character of the speaker.

4 0
3 years ago
One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general resul
Oksana_A [137]

Answer: B. stockholders expropriate value from bondholders by selecting high-risk projects.

Explanation:

Bankruptcy simply means when an individual or business cannot pay back the funds that is owed to the creditor. When bankruptcy is declared by a particular business, the assets for the business are used in paying back the debt.

One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general result is that stockholders expropriate value from bondholders by selecting high-risk projects.

Therefore, option B is the answer.

8 0
3 years ago
"You need to have $15,000 in five years to pay off a home equity loan. You can invest in an account that pays 5.75 percent compo
Nana76 [90]

Answer:

I have to invest $11364.

Explanation:

The formula of Compound Interest is:

A = P(1+\frac{r}{n})^{nt}

where A = Amount

P = Principle

r = rate

n = Number of Compounding per year

t = total number of year

Here, A = 15000, r = 5.75% = 0.0575, n = 4(quarterly), and t = 5.

Putting all these values in above formula:

15000 = P(1+\frac{0.0575}{4})^{4\times5}

⇒ 15000 = P(\frac{4.0575}{4})^{20}

⇒ 15000 = P(1.014)^{20}

⇒ 15000 = P(1.320)}

⇒ P = 11364

Hence, I have to invest $11364 for 5 years.

4 0
3 years ago
Other questions:
  • Honest Abe’s is a chain of furniture retail stores. Integral Designs is a furniture maker and a supplier to Honest Abe’s. Honest
    5·1 answer
  • Which kind of norm is so deeply ingrained that the very thought of breaking it brings feelings of disgust or horror?
    15·1 answer
  • What is the par or stated value per share of apple's common stock? what percentage of apple's authorized common stock was issued
    9·1 answer
  • If the economy is at equilibrium above potential output, there is a(n) _____ gap, and _____ fiscal policy is appropriate
    7·1 answer
  • If textbooks and study guides are complements, then an increase in the price of textbooks will result in
    14·1 answer
  • A smaller business with variable cash flow is looking to establish a pension plan for its 50 employees. It wants a plan that all
    11·2 answers
  • During its first month of operations in March, Volz Cleaning, Inc., completed six transactions with the dollar effects indicated
    13·1 answer
  • Terra Corp. is incorporated in Florida with its principal office in Destin. Phyllis is the president of Terra Corp. and owns 51%
    8·1 answer
  • The slope of the budget constraint A. measures the rate at which the consumer can trade one good for another. B. equals the rela
    8·1 answer
  • determine which statement below about economics is true. economics studies decision-making processes. macroeconomics studies the
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!