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mamaluj [8]
3 years ago
6

Dean exchanges a business storage facility with a $120,000 adjusted basis for $40,000 cash and a parking lot with a $140,000 FMV

. What is the amount of gain which Dean recognizes on the exchange
Business
1 answer:
Mariulka [41]3 years ago
5 0

Answer:

$40,000

Explanation:

This transaction lacks commercial substance, therefore, Dean should only recognize the boot (cash received) as gain from this transaction. The adjusted basis for Dean's "new" parking lot is $120,000, the same adjusted basis as the business storage facility.

This happens because the boot was not more than 25% of the value of the total consideration received by Dean (cash + parking lot). If the boot is 25% or more, then the sale must be reported as a cash sale.

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Diz Co. is a U.S.-based MNC with net cash inflows of euros and net cash inflows of Swiss francs. These two currencies are highly
VikaD [51]

Answer:

Yanta Co. has a higher exposure to exchange rate risk than Diz Co.

The reason is that Yanta Co. does not have net inflows of euros.  Instead, its euro transactions yield net outflows.

It will always be in need of euros to settle its foreign debts or obligations, unlike Diz Co. with foreign assets.

Explanation:

a) Data and Analysis:

Diz Co. has net cash inflows of euros and net cash inflows of swiss francs

Yanta Co. has net cash outflows of euros and net cash inflows of swiss francs

b) Exposure to exchange rate risk or currency risk is the financial risk arising from fluctuations in the value of the US dollars against the Euro or Swiss Francs in which Diz Co. has some foreign assets while Yanta Co. has foreign obligations.

5 0
3 years ago
Negotiate a venue for a year end function​
crimeas [40]

Answer: Year-end function planning with my tips

Involve management in the arrangements.

Set the date.

Decide on a theme.

Get a venue.

Decide on food and be mindful of allergies, cultures, and eating habits.

Make personal and exciting online invitations.

Arrange for group shuttle services for safe transportation.

Always keep the budget in mind.

Explanation:

Done this before.

4 0
3 years ago
Extra units that are held in inventory to reduce stockouts are called a. demand variance. b. reorder point. c. safety stock. d.
vampirchik [111]

Extra units that are held in inventory to reduce stock outs are called just-in-time inventory. The term inventory refers to both the raw materials utilized in production and the finished commodities that are ready for sale. The first-in, first-out method, the last-in, first-out approach are used for inventory valuation.

Inventory turnover is a major contributor to revenue production and, subsequently, to profits for the company's shareholders, making it one of a company's most valuable assets. Work-in-progress items, finished goods, and raw materials make up the three categories of inventory. It is classified as a current asset on the asset side of a company's balance sheet.

To learn more about inventory, click here.

brainly.com/question/15118949

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7 0
2 years ago
​Stelloh's Berry Farm accepted a bankminusissued credit card in payment of a $ 1 comma 300 sales transaction.​ Stelloh's bank ch
Leya [2.2K]

Answer:

Debit Cash $1,261

Dr card discount expense $39,

Credit Sales Revenue for $1,300

Explanation:

​Stelloh's Berry Farm Journal entries

Debit Cash $1,261

($1,3,00-$39)

Dr card discount expense $39,

(3%×$1,300)

Credit Sales Revenue for $1,300

4 0
3 years ago
Chad and Allison Druxman launched a firm several years ago and have been particularly successful in introducing new products to
zalisa [80]

Answer:

Execution intelligence

Explanation:

Execution intelligence is an important characteristic of successful entrepreneurs and it is the <u>ability to transform an idea into a valuable product that meets consumer needs in the marketplace.</u>

Chad and Allison Druxman can therefore be said to have execution intelligence.

7 0
4 years ago
Read 2 more answers
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