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
olga55 [171]
3 years ago
14

Scott is a 50% partner in the LS Partnership. Scott has a basis in his partnership interest of $84,000 at the end of the current

year, prior to any distribution. On December 31, Scott receives an operating distribution of $9,000 cash and a parcel of land with a $21,000 fair market value and a $12,000 basis to the partnership. LS has no debt or hot assets. What is the amount and character of Scott's recognized gain or loss
Business
1 answer:
SVETLANKA909090 [29]3 years ago
7 0

Answer:

A. No gain or loss

B. Cash $9,000

Land $12,000

C. $63,000

Explanation:

A. Based on the information given he RECOGNIZES NO GAIN OR LOSS

B. Based on the information given his basis in the distributed property will be basis of $9,000 cash and basis of $12,000 land

C. Calculation to determine his ending basis in his partnership interest

Ending basis=$84,000 - $9,000 - $12,000

Ending basis =$63,000

Therefore his ending basis in his partnership interest will be $63,000

You might be interested in
Our immediate short term memory for new material is limited to roughly ________ units of information.
Alecsey [184]
<span>Our immediate short term memory for new material is limited to about seven unites of information. Immediate short term memory is the ability we all have to remember a small bit of information for a few seconds.</span>
6 0
3 years ago
In 2018, Ryan Management collected rent revenue for 2019 tenant occupancy. For financial reporting, the rent is recorded as defe
Tema [17]

Answer:

The Journal entries are as follows:

(i) In 2018,

Income Tax Expense A/c                      Dr. $24

Deferred Tax Assets A/c ($40 × 30%)  Dr. $12

To Income Tax Payable ($120 × 30%)                        $36

(Being income tax and deferred tax recorded for 2018)

(ii) In 2019,

Income Tax Expense A/c                         Dr.  $45

To Income Tax Payable ($140 × 30%)                          $42

To Deferred Tax Assets ($10 × 30%)                          $3

(Being income tax and deferred tax recorded for 2019)

6 0
3 years ago
The Evanec Company's next expected dividend, D1, is $3.03; its growth rate is 5%; and its common stock now sells for $34.00. New
Anestetic [448]

Answer:

(a) 14%

(b) 15%

(c) 15.48%

Explanation:

cost of retained earnings:

= ($3.03 ÷ $34) + 0.05

= 0.09 + 0.05

= 14%

Therefore, the Evanec's cost of retained earnings is 14%

Flotation cost percentage:

= [($34 - $28.90) ÷ $34] × 100

= 0.15 × 100

= 15%

Therefore, the Evanec's percentage flotation cost is 15%.

Cost of new common stock:

= ($3.03 ÷ $28.90) + 0.05

= 0.1048 + 0.05

= 15.48%

Therefore, the Evanec's cost of new common stock is 15.48%.

8 0
3 years ago
How would the issuance of common stock for cash affect the accounting​ equation?
shepuryov [24]

Answer:

Explanation:

The journal entry to record the given transaction is shown below:

Cash A/c Dr XXXXX

    To Common stock A/c XXXXX

(Being the issuance of the common stock is recorded)

The accounting equation is

Total Assets = Total liabilities + Stockholder equity

Cash Increased = No effect    + Increased

Therefore, the cash account and the common stock is increased.

3 0
3 years ago
You purchase one IBM July 125 call contract for a premium of $5. You hold the option until the expiration date when IBM stock se
Trava [24]

Answer:

Loss of $500

Explanation:

Given that

Stock price = 123

Strike price = 125

Premium price = 5

Recall that

Long call profit = (MAX (stock price - strike price, 0) - premium per share

Thus,

Long call profit = Max [0, ($123 - $125)(100)] - $500

= - $500.

Therefore, the negative sign in front indicates a loss of $500

3 0
3 years ago
Other questions:
  • Tracy, age 22, is riding the city bus home after her evening college class. A mother with a young child gets on the bus and beca
    15·1 answer
  • A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,
    13·1 answer
  • Which of the following is not something that money does in an economy?
    8·2 answers
  • Securities issued by all of the following organizations are exempt from the registration requirements of the 1933 Securities Act
    12·1 answer
  • Assume the market for cell phones is an oligopoly. Further assume that cell phone consumption and production generate no negativ
    5·1 answer
  • Which objective is NOT appropriate for an informational interview?
    10·2 answers
  • An economy has three sectors producing products:
    12·1 answer
  • All of the following will occur if the government places an effective price ceiling on candy bars except:
    6·1 answer
  • The amount of money you earn has nothing to do with your life style budget T F
    11·1 answer
  • friedman and phelps suggested that there should not be a stable relationship between inflation and unemployment, but there shoul
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!