PLS NEED HELP ASAP IM BEHIND BAD

Three individuals form Skylark Corporation with the following contributions: Cliff, cash of $50,000 for 50 shares; Brad, land wo

eduard

Answer: d. Ron has income on the transaction of $21,000

Explanation:

Ron’s stock received for services counts toward the 80% control test so the transfers are eligible for IRC § 351 exemption.

This means that the total income that Ron has as a result of this transaction is the $21,000 for services.

Ron's basis will therefore be;

= Cattle basis + Income from services rendered

= 6,000 + 21,000

= $27,000

4 0

3 years ago

The expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Inc., and 70 percent invested

kirill115 [55]

Answer:

For correlation 1 the standard deviation of portfolio is 0.433.

For correlation 0 the standard deviation of portfolio is 0.3191.

For correlation -1 the standard deviation of portfolio is 0.127.

Explanation:

The standard deviation of a portfolio is computed using the formula:

$\sigma_{P}=\sqrt{w^{2}_{1}\sigma_{1}^{2}+w^{2}_{2}\sigma_{2}^{2}+2\times r\times w_{1}\sigma_{1}w_{2}\sigma_{2}}$

(1)

For r = + 1 compute the standard deviation of portfolio as follows:

$\sigma_{P}=\sqrt{w^{2}_{1}\sigma_{1}^{2}+w^{2}_{2}\sigma_{2}^{2}+2\times r\times w_{1}\sigma_{1}w_{2}\sigma_{2}}\\=\sqrt{(0.30^{2}\times 0.51^{2})+(0.70^{2}\times 0.40^{2})+(2\times1\times0.30\times 0.51\times0.70\times 0.40)}\\=\sqrt{0.187489}\\=0.433$

Thus, for correlation 1 the standard deviation of portfolio is 0.433.

(2)

For r = 0 compute the standard deviation of portfolio as follows:

$\sigma_{P}=\sqrt{w^{2}_{1}\sigma_{1}^{2}+w^{2}_{2}\sigma_{2}^{2}+2\times r\times w_{1}\sigma_{1}w_{2}\sigma_{2}}\\=\sqrt{(0.30^{2}\times 0.51^{2})+(0.70^{2}\times 0.40^{2})+(2\times0\times0.30\times 0.51\times0.70\times 0.40)}\\=\sqrt{0.101809}\\=0.3191$

Thus, for correlation 0 the standard deviation of portfolio is 0.3191.

(3)

For r = -1 compute the standard deviation of portfolio as follows:

$\sigma_{P}=\sqrt{w^{2}_{1}\sigma_{1}^{2}+w^{2}_{2}\sigma_{2}^{2}+2\times r\times w_{1}\sigma_{1}w_{2}\sigma_{2}}\\=\sqrt{(0.30^{2}\times 0.51^{2})+(0.70^{2}\times 0.40^{2})+(2\times-1\times0.30\times 0.51\times0.70\times 0.40)}\\=\sqrt{0.016129}\\=0.127$

Thus, for correlation -1 the standard deviation of portfolio is 0.127.

3 0

3 years ago

In an economy without international trade, investment must equal ______ saving.

maks197457 [2]

Investment must equal national saving

5 0

3 years ago

Read 2 more answers

December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun u

allochka39001 [22]

Answer:

A. NA = NA + NA NA -NA = NA NA NA

Explanation:

As Year 2 the customer paid Loudoun the $1,050,which was written off On April 4, Year 1.

Therefore, the following journal entries to record the transaction.

Accounts receivable debit $1,050

Allowance for doubtful accounts credit $1,050

To record reinstatement of accounts receivable.

Cash debit $1,050

Accounts receivable credit $1,050

As one asset account is increase and another asset account is decreased.

7 0

3 years ago

Bonita Industries is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Bonita made pa

Trava [24]

Answer:

Bonita Industries is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Bonita made payments to the construction company of $3090000 on 7/1, $6408000 on 9/1, and $5840000 on 12/31. Weighted-average accumulated expenditures were

6 0

3 years ago