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son4ous [18]
3 years ago
8

Casey transfers property with a tax basis of $2,000 and a fair market value of $5,000 to a corporation in exchange for stock wit

h a fair market value of $4,000 and $400 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $600 on the property transferred. Casey also incurred selling expenses of $300. What is the amount realized by Casey in the exchange?
A. $5,000
B. $4, 700
C.. $4, 600
D. $4, 200
Business
1 answer:
pochemuha3 years ago
7 0

Answer:

B. $4,700

Explanation:

Calculation for the amount realized by Casey in the exchange

Using this formula

Amount realized in the exchange=Fair market value+ Qualifies deferral transaction+Property transferred Liability-Incurred selling expenses

Let plug in the formula

Amount realized in the exchange=$4,000 +$400 +$600 - $300

Amount realized in the exchange=$4,700

Therefore the amount realized by Casey in the exchange will be $4,700

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Albert just purchased a​ $1,000, 5.4%, 10minusyear bond when he heard about his friend Charlie who just bought a equal quality b
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Whole Nature Foods sells a gluten-free product for which the annual demand is 5000 boxes. At the moment it is paying $6.40 for e
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Answer:

the answer is =32291.67.

The firm should take the advantage of the new quantity as the total cost is lesser as compared with the  old supplier. the firm can save $340 by approximately taking the advantage of the new quantity discount.

Explanation:

Solution

Given that:

The Annual demand D = 5000 boxes

The Cost C = $6.4 per each box

The Carrying cost H = 25% of the unit cost = 0.25*6.4 = 1.6

The ordering costs S = $25.00

Now,

EOQ =√2DS/H

EOQ =√(2*5000 * 25)/1.6

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EOQ =Q = 395.28

The Total cost = DC + (Q/2)H + (D/Q)S

= 5000*6.4 + (395.28 /2) 1.6 + (5000/395.28)25

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T = 32000 + 316.23 + 316.23

= 32632.46

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The new supplier has offered to sell the same item for the amount of  $6.00 if Q = 3,000 boxes

Hence,

The total cost = 5000 * 6 + (3000/2)1.5 + (5000/3000)25

= 30000 + 2250 + 41.67

= 32291.67

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3 years ago
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