Answer: A) $3,425 B)$5,950 C)$18,175
Explanation:
a)Kimberly's capital gain = land's Fair market value -non contributed land's Fair market value = $26,075- $22,650= $3,425
b)Kimberly's basis after the distribution = basis in KST + gain - Carryover basis in land = $20,700 + $3, 425 - $18,175 = $5,950
c) KST's basis on the land =KST land's basis on contribution+ Kimberly's gain = $14,750+$3, 425 = $18,175
If inc. jones reported net income of $60,000 during the period. rex will report its 30% of the earnings with a <u>credit</u> to earnings from equity method investment in the amount of <u>$18,000</u>.
<h3>
Equity method investment</h3>
Since rex. co hold 30 percent of the shares of stock in jones inc which in turn means that jones will report 30% of the earning (net income) which is $18,000 calculated as (30%×$60,000).
The amount of the earnings which is $18,000 will be credited to earning from equity method investment.
Equity method investment=30%×$60,000
Equity method investment=$18,000 (credited)
Therefore If inc. jones reported net income of $60,000 during the period. rex will report its 30% of the earnings with a <u>credit</u> to earnings from equity method investment in the amount of <u>$18,000</u>.
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It is completely inappropriate to suggest that the securities and exchange commission supported the practice of insider trading on the stock market. Therefore, the statement given above is false.
<h3>What is the significance of insider trading?</h3>
Insider trading can be referred to or considered as an unfair trading practice of placing trade on securities of a company due to a possession of an unpublished price sensitive information not accessible to the public.
To protect the interests of general investors in the stock market, the securities, and exchange commission has laid strict regulations and fines as well as imprisonment on the practice of insider trading in the stock market.
Therefore, the statement given above regarding the significance of insider trading is false.
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The question given above is to be assumed as a TRUE or FALSE question. The answer has been given under same assumption.
In 1903, the congress passed a law declaring that a person holding a specific political viewpoint could be banned from entering the nation, these were the <u>anarchists</u>.
<h3>Who are the
anarchists?</h3>
These are group of people that holds the theory that is skeptical of the justification of authority and power, they pursues that cluster of doctrines and attitudes centered on the belief that government is both harmful and unnecessary.
The first person to be call an anarchist was the French writer called Pierre-Joseph Proudhon. In his study, he argued that the real laws of society have nothing to do with authority but rather stem from the nature of society itself and he foresaw the eventual dissolution of authority and the emergence of a natural social order.
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Marginal revenue refers to the additional revenue gained from selling one more unit. It is simply the added revenue that will be produced by selling a product by one more unit. It is calculated by dividing the change in the revenue with the change in the total output of units.
