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emmainna [20.7K]
3 years ago
6

Pursuant to a complete liquidation, Oriole Corporation distributes to its shareholders land held for three years as an investmen

t (adjusted basis of $250,000, fair market value of $490,000). The land is subject to a liability of $520,000.a. What are the tax consequences to Oriole Corporation on the distribution of the land?b. If the land is, instead, subject to a liability of $400,000, what are the tax consequences to Oriole on the distribution?
Business
1 answer:
andrew-mc [135]3 years ago
6 0

Answer:

A. $270,000 gain

B. $240,000 gain

Explanation:

A. Calculation to determine the tax consequences to Oriole Corporation on the distribution of the land

Tax consequences=$520,000 – $250,000

Tax consequences=$270,000 gain

Therefore Oriole will recognize a $270,000 gain on the distribution

B. Calculation to determine the tax consequences to Oriole on the distribution

Tax consequences=$490,000 – $250,000

Tax consequences= $240,000 gain

Therefore Oriole will recognize a gain of $240,000 on the distribution.

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Jasper makes a $84,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the transaction should be:__________
svet-max [94.6K]

Answer:

a) Debit Notes Receivable for $84,000, credit Cash $84,000.

Explanation:

Based on the information given we were told that Jasper makes the amount of $84,000 which means that Jasper's appropriate journal entry to record the transaction should be:

Debit Notes Receivable $84,000

CreditCash $84,000

4 0
3 years ago
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The correct answer is the bystander effect .The bystander effect is when there are so many people around each individual doesn't feel the need to help because there are many others around to do so. Diffusion of responsibility explains this phenomenon.
6 0
3 years ago
The risk that actual returns will not match or exceed expected returns is called:________a. investment risk. b. asset class risk
Alex73 [517]

Answer:

a. investment risk

Explanation:

Risk is the potential of an action or activity (including the option not to move) to cause an undesired loss or event. The idea implies that a choice affects the outcome. The same potential losses can be called "risk".

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8 0
3 years ago
A consumer spends all of her income​(Y) on two goods Z and B.The price of good B ​(PB​) is $6. The Marginal Rate of Transformati
Alex

Answer:

The consumer's income is $216.

Explanation:

A consumer consumes two goods Z and B.  

The price of good B is $6.  

The consumer is consuming 18 units of good Z and 0 units of good B.  

The marginal rate of transformation is the ratio of the price of two goods.  

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2 = \frac{Pz}{6}

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The budget constraint will be  

= 12\ \times\ 18\ +\ 6\ \times\ 0\

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4 years ago
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Answer:

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Hence, the correct option is C.

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3 years ago
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