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Fittoniya [83]
2 years ago
5

In X1, Adam and Jason formed ABC, LLC, a car dealership in Kansas City. In X2, Adam and Jason realized they needed an advertisin

g expert to assist in their business. Thus, the two members offered Cory, a marketing expert, a one-third capital interest in their partnership for contributing his expert services. Cory agreed to this arrangement and received his capital interest in X2. If the value of the LLC's capital equals $180,000 when Cory receives his one-third capital interest, which of the following tax consequences does not occur in X2?A. Cory reports $60,000 of ordinary income in X2.B. Adam, Jason, and Cory receive an ordinary deduction of $20,000 in X2.C. Adam and Jason receive an ordinary deduction of $30,000 in X2.D. Cory reports $60,000 of ordinary income in X2, and Adam and Jason receive an ordinary deduction of $30,000 in X2.
Business
1 answer:
eduard2 years ago
6 0

Answer: B. Adam, Jason, and Cory receive an ordinary deduction of $20,000 in X2.

Explanation:

Based on the information given, since the value of the LLC's capital equals $180,000 after Cory receives his one-third capital interest, Cory will report (⅓ × $180000) = $60,000 of ordinary income in X2.

Also, Adam and Jason will receive an ordinary deduction of $30,000 in X2. The sentence that "Adam, Jason, and Cory receive an ordinary deduction of $20,000 in X2" is wrong. They do not get sane amount as Cory gets a higher amount.

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A stock has an expected return of 11.85 percent, its beta is 1.24, and the expected return on the market is 10.2 percent. What m
prisoha [69]

Answer:

The risk free rate is 3.325%

Explanation:

The required rate of return or cost of equity of a stock can be calculated using the CAPM. The CAPM estimates the required rate of return of a stock based on three factors- risk free rate, stock's beta and the market risk premium. The equation of required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on market
  • (rM - rRF) gives us the risk premium of market

We already have the values for r, Beta and rM. Plugging in these values in the formula, we calculate the rRF to be,

Let rRF be x.

0.1185 = x + 1.24 * (0.102 - x)

0.1185 = x + 0.12648 - 1.24x

1.24x - x  =  0.12648 - 0.1185

0.24x = 0.00798

x = 0.00798/0.24

x = 0.03325 or 3.325%

3 0
3 years ago
What type of promotion takes place at trade shows?
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B. Personal Selling

A trade show is an event where members of a particular industry or group come together and view displays and booths from various companies with their products and services. The company reps are involved in personal selling to the trade show attendees.

4 0
3 years ago
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Compare and contrast the academic and practitioners research communities
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Answer: compare and contrast the characteristics of the academic and practitioners research communities and explain which audience is going to present it's findings to and whyIdentify an example of a development project and what type of team you believed they used? Answer the questions to receive full credit:1) What factors should the firm take into account when deciding the make up of the teamincluding whether it should centralize its R&D activities?2) Describe an alternative type of team (or second approach - team construct, centralized activities, collaboration, etc.)FOR BOTH QUESTIONS SOME LEVEL OF COMPARISONS OF GOOD AND BAD  

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"during times of economic trouble, which are immigrants often accused of?" causing inflation and unemployment to increase planni
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<span>During times of economic trouble, which are immigrants often accused of?
Taking jobs away from native-born residents. During economic trouble, immigrant are often accused on taking jobs away from native-born residents because they are typically cheaper to hirer for the same job. Immigrants often work harder as well by nature because they need to prove themselves (as they think) to keep their jobs and create a profitable life in America. This makes it hard for native-born residents to keep their jobs since the immigrants will do the same amount of work for less wage. </span>
4 0
3 years ago
On December 31, prior to adjustment, Allowance for Uncollectible Accounts has a credit balance of $400. An age analysis of the a
slega [8]

Answer:

Bad debts expense                                      Debit            $ 600

Allowance for Uncollectible expenses       Credit                          $ 600

Explanation:

The allowance for uncollectible accounts is estimated usually on the basis of a percentage of credit sales. The data in the question indicates that the estimated losses from uncollectible accounts is $ 1,000.

The unadjusted balance is $ 400, so the adjusting entry is for the balancing amount, i.e. $ 600. It is debited to bad debts and credited to allowance for uncollectible accounts.

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