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stepan [7]
3 years ago
15

Erica transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for all of Robin's sto

ck, worth $300,000, and a 10-year note. The note was executed by Robin and made payable to Erica in the amount of $200,000. As a result of the transfer:
Business
1 answer:
valentinak56 [21]3 years ago
5 0

Answer:

Robin Corporation has a basis of $300,000 in the land.

Explanation:

Options are <em>"a. Erica does not recognize gain.  b.  Erica recognizes gain of $400,000.  c.  Robin Corporation has a basis of $100,000 in the land.  d. Robin Corporation has a basis of $300,000 in the land.  e.  None of the above."</em>

<em />

Erica has a recognized gain of $200,000 which is the amount made payable to her through her receipt of the securities in Robin Corporation. The basis of the land to Robin would be equals to the basis Erica has in the land, $100,000 plus gain recognized by Erica $200,000 or $300,000.

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Jeffery wants to start his own small business, however he needs to persuade lenders and/or investors to back his new venture wit
Alex

Answer:

The correct answer is: to start a business plan.

Explanation:

To begin with, if Jeffery is looking forward to start a new business and with that he needs to persuade lenders or investors then he must start a business plan with enough information and strategies that can show to those people the fact that the business has a solid background and more than that it will show also that Jeffery is a serious person and will compromise to pay all the lends he take. That is why, the preliminary step in beginning his new business will be to make a plan where he state all the information necessary to start.

8 0
3 years ago
According to the quantity theory of money, a 5 percent increase in money growth increases inflation by ___ percent. According to
lina2011 [118]

Answer:

both blanks can be filled by <u>5%</u>

Explanation:

The quantity theory of money states that there is a proportional relationship between the money supply and the general level of prices. An increase in the money supply will increase the general level of prices in the same proportion (called inflation).

The Fisher equation measures the relationship between nominal and real interest rates. Real interest rate = nominal interest rate - inflation rate.

So if inflation increases, the nominal inflation rate will increase to keep the real interest rate the same.

8 0
3 years ago
How much would you have to invest today in the bank at an interest rate of 10% to have an annuity of $5600 per year for 7 years,
Shtirlitz [24]

Answer:

PV = $27,263.15

It will be needed to deposit the lump sum of $27,263.15

Explanation:

The question is asking for how much will you need to deposit in a lump sum  today to withdraw for seven years the sum of $5,600 with an interest rate of 10%

In other words it is asking us for the preset value of an annuity of $5,600 with interest of 10%

Using the present value of an annuity formula of $1 we can solve for the present value of that annuity, which is the amount needed to generate this annuity

C * \frac{1-(1+r)^{-time} }{rate}= PV\\

We post our knows value and solve it:

5,600 * \frac{1-(1+0.10)^{-7} }{0.10}= PV\\

PV = $27,263.15

8 0
3 years ago
Bank A quotes a bid rate of $.300 and an ask rate of $.305 for the Malaysian ringgit (MYR). Bank B quotes a bid rate of $.306 an
alexdok [17]

Answer:

B. $1,639 ​

Explanation:

To do arbitraje we will ask at Bank A for $0.305

and then bid in Bank B at $0.306

As the transactions has no cost we are doing a profit by using the exchange as they allowed. Doing this procedure will at some point eliminate the difference in exchange rate for these bank as the purchase will rise the ask rate for Bank A and the sale will decrease the bid rate.

500,000 \times \frac{0.306}{0.305}

Total: 501639,3442622951

The profit will be for: 501,639.34 - 500,000 = 1,639.34

7 0
3 years ago
HealthWise Corporation has developed a new diet supplement to assist with weight loss. Which type of legal protection grants Hea
lidiya [134]

Answer:

True

Explanation:

Patent -

It refers to the legal rights given in order to sell , publish , manufacture the goods and services for a specified time period , is referred to as a patent .

The company or people has the legal right to sell or publish any others work .

These patents are approved by the government .  

It enables to provide the monetary value for the country , by designing and developing goods and services.

Hence , from the given scenario of the question ,

The correct term is patent .

5 0
3 years ago
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