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
AlekseyPX
3 years ago
13

Wozniacki and others form Jewel LLC, with each receiving a one-fifth interest in the capital and profits of the LLC. Wozniacki r

eceives his one-fifth interest as compensation for tax planning services he rendered prior to the formation of the LLC. The other partners each contribute $245,675 cash. The value of a one-fifth capital interest in the LLC (for each of the parties) is $245,675.
a. How much income does Wozniacki recognize as a result of this transaction, and what is the character of the income?
b. How much is Wozniacki’s basis in the LLC interest?
c. How will Jewel treat this amount?
Business
1 answer:
Digiron [165]3 years ago
5 0

Answer:

A. $245,675 Compensation Income

B. $245,675

C. Business deduction or the company startup

expenditure Amount

Explanation:

A. Based on the information given we were told that the Cash amount of $245,675 which is one-fifth interest was received as the amount of compensation for tax planning services that was rendered by him prior to the formation of the LLC which means that the amount of income he recognize as a result of this transaction is the amount of $245,675 and the character of the income is COMPENSATION INCOME

B. Based on the information given the amount of his BASIS in the LLC interest will be the one-fifth interest amount of $245,675

C. Based on the information given Jewel will treat this amount as either the company business deduction or the company startup expenditure amount.

You might be interested in
"which always increase(s) as output increases?"
marta [7]

Answer: d. total cost and variable cost

A variable cost<span> is a company expense that changes in parallel with production output. They rise as production increases.</span>

Total cost<span> refers to the total company expense incurred in producing a particular level of output. Same with the variable cost, it increases as production increases.</span>

6 0
3 years ago
Samantha works as a marketing manager for a cosmetics manufacturer. She plans to suggest a specific type of business model that
galina1969 [7]

<em>A) Franchise is a business model Samantha have in mind.</em>

Answer: <em>A) Franchise </em>

Explanation:

Franchise is the business model which is adopted by many business organisation for the purpose of business expansion. Where the other new business holders carry out the business using the company's procedure, brand name etc.

Under the same name and business line, the business is carried out by the new reciters and a amount of their profit is earned by the owner of the business. Here in this case Samantha is using Franchise business model.

8 0
3 years ago
Read 2 more answers
Health claims made in product advertisement must be backed by a . Local authorities b. Scientific evidence c . Endorsement
diamong [38]

Answer:

the answer is b! :)

Explanation:

7 0
3 years ago
Read 2 more answers
Noncompensatory stock option plans have all of the following characteristics except:__________
zmey [24]

Answer: d. A provision related to the achievement of certain performance criteria

Explanation:

While compensatory plans are used in order to compensate the employees of a particular company, the noncompensatory stock option is one whereby the employees of a company are allowed to purchase the stock of that company at a particular price t a specific price and at a particular time period.

Some of its characteristics include:

• participation by substantially all full-time employees who meet limited employment qualifications.

• equal offers of stock to all eligible employees.

• a limited amount of time permitted to exercise the option.

Option D that "provision related to the achievement of certain performance criteria" isn't a characteristics. Therefore, D is the answer.

7 0
3 years ago
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $54,480. Calvin Co. has one recorded ass
Sunny_sXe [5.5K]

Answer:

Beckman noncontrolling interest in subsidiary income $10,520

Calvin Machine (net of accumulated depreciation) $71,200

Explanation:

To calculate noncontrolling interest in subsidiary's income;

Revenue    $65,550

Expenses   $39,250 (29,250 + $6,800 + $3,200)

Net Income $26,300

Noncontrolling percentage = 40%

NonControlling Income = $10,520

Depreciation of Machine = \frac{Fair value of Machine - Book value}{estimated useful life}

\frac{78,000 - 10,000}{10 years} = 6,800 per annum

Amortization of trade secrets = \frac{Fair Value Total - Machine value}{Useful life}

Amortization of trade secrets = \frac{90,800 - 78,000}{4 years}

= 3,200

3 0
3 years ago
Other questions:
  • Shaw Company engages Maya Company to produce a large machine, install the machine, and train their employees on the machine. The
    13·1 answer
  • Changes that can increase measured total factor productivity include:
    13·1 answer
  • As referred to in the NSMIA, the term "covered security" would apply to
    7·1 answer
  • ____________bonds are exchangeable at the option of the holder for the issuing firm's common stock. Bonds can be issued with war
    9·1 answer
  • Monty has launched a company with the help of crowdfunding. He wants to secure the computer algorithm that he uses in his primar
    8·1 answer
  • The current stock price of Alcoco is $70, and the stock does not pay dividends. The instantaneous risk-free rate of return is 6%
    12·1 answer
  • THE SUBJECT IS ACTUALLY SCIENCE HOW DO WE CLASSIFY THE BIODIVERSITY OF LIVING THINGS
    7·2 answers
  • The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $18,500 per year fo
    15·1 answer
  • Which of the following is NOT one of the factors complicating the techniques for addressing the fixed-position layout?
    10·1 answer
  • Assuming a current ratio of 1.00 and an acid test ratio of .75 how will the purcahse inventory with cash affect each ratio
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!