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
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.

You might be interested in
Which of the following is the most profitable investment for a game shop earning 2 profit from every game sold
stira [4]

Answer:  3 profit

Explanation:

6 0
3 years ago
On January 1, 2019, in a merger transaction, Maxi Company paid $371,000 in cash for 100% of the outstanding common stock of Mini
boyakko [2]

Answer:

$224,000

Explanation:

Goodwill from acquiring Mini Company = Cash consideration paid - Fair value of Mini Company's plant and equipment = $371,000 - $147,000 = $224,000

The net increase in Maxi's assets only after paying the cash for Mini is $224,000 i.e. the goodwill from acquiring Mini Company.

8 0
3 years ago
Presented below is information for Ivanhoe Co. for the month of January 2022. Cost of goods sold $221,000 Rent expense $33,500 F
zhenek [66]

Answer:

Sales Revenues   392,500

Sales Returns        (20,000)

Freight outs     <u>         (9,700)   </u>

Net Sales              362,800‬

Cost of good sold (221,000)

Gross profit             141,800

Operating Expenses

Rent expense                          (33,500)

nsurance expense                   (14,600)

Salaries and wages expense<u> (63,400)  </u>

Operating Income                    30,300‬

Income tax expense                  (4,300)

Net Income                                26,000

Other comprehensive income    2,000

Comprehensive Income           28,000

Explanation:

the OCI is listed after-taxed thus do not change the total income tax expense

comprehensive income will be the sum of both concepts net income and OCI

3 0
3 years ago
Marianne was a computer programmer making almost $170,000 a year at a rate of $80 an hour for Big Tech. Ginger, her boss, demand
s2008m [1.1K]

Under the Fair Labor Standards Act, Marianne is entitled to $12,000 for overtime pay.

<h3>What is the overtime rate under the Fair Labor Standards Act?</h3>

Under the Fair Labor Standards Act, the overtime rate is a <u>time and a half</u>.

<h3>Data and Calculations:</h3>

Annual salary = $170,000

Rate per hour = $80
Overtime rate per hour = $120 ($80 x 1.5)

Overtime hours = 100 hours

Overtime pay = $12,000 (100 x $80 x 1.5)

Thus, under the Fair Labor Standards Act, Marianne is entitled to $12,000 for overtime pay.

Learn more about the Fair Labor Standards Act at brainly.com/question/499564

#SPJ1

5 0
2 years ago
Please follow me is there any BTS fan. ​
Harlamova29_29 [7]

Explanation:

why do you need followers here?

5 0
2 years ago
Other questions:
  • Brenda sold investment land for $200,000 in June. Her basis in the land was $75,000. The purchaser paid Brenda $40,000 cash and
    10·1 answer
  • OSHA is an acronym that represents:
    6·1 answer
  • When a home is constructed, consideration is given to the positioning of the building relative to its surroundings and the sun,
    5·1 answer
  • Planning: Assessing Audience Needs [LO-2] For each communication task that follows, write brief answers to three questions: Who
    7·1 answer
  • Among the tax proposals regularly considered by Congress is an additional tax on distilled liquors. The tax would not apply to b
    11·1 answer
  • Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 30 billion bottles of wine were sold ev
    14·1 answer
  • Why is there a need to assess one's PECs in terms of characteristics,attributes,lifestyle,skills traits before starting a partic
    12·1 answer
  • What are three thing an entrepreneur invest in his or her business
    9·2 answers
  • Major retail firms such as Walmart have used data mining to customize the product offerings for each store.
    10·2 answers
  • A resource management system in which decisions regarding resource access and use are vested in a community of identifiable memb
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!