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MrMuchimi
2 years ago
6

Amy transfers property with a tax basis of $970 and a fair market value of $650 to a corporation in exchange for stock with a fa

ir market value of $455 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $195 on the property transferred. What is Amy's tax basis in the stock received in the exchange?
Business
1 answer:
Morgarella [4.7K]2 years ago
5 0

Answer:

$775

Explanation:

Calculation for Amy's tax basis in the stock received in the exchange

Using this formula

Tax basis in the Stock received Exchange = Tax basis - Liability on property transferred

Let plug in the formula

Tax basis in the Stock received Exchange=$970-$195

Tax basis in the Stock received Exchange = $775

Therefore Amy's TAX BASIS in the stock received in the exchange will be $775

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Answer:

Choosing alternative B would increase net income by $17,100

Explanation:

The analysis showing the incremental revenues,costs and net income of alternative A and B is shown below:

              Alternative A           Alternative   B     Difference between A&B

Revenues        $146,100            $185,900           $39800

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Net income      $41,700                 $58,800        $17,100

Alternative B records a higher net income compared to Alternative A,hence choosing alternative B would increase net income by $17,100

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3 years ago
AN The Mixing Department manager of Malone Company is able to control
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The responsibility report for the overhead costs incurred by Malone Company for the given period are attached with an image for better reference.

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1 year ago
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Answer:

b. <u>cash, investments, and receivables, inventories, prepayments</u>

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3 0
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Answer:

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