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Rudik [331]
3 years ago
15

Chrissie and Mirinda want to form a corporation. Chrissie contributes property worth $750,000 and a basis of $500,000 in exchang

e for stock worth $750,000 and Mirinda contributes services in exchange for stock worth $250,000.
Does this qualify as a good Section 351 transaction?

What gain does Chrissie Recognize?

What gain does Mirinda recognize?
Business
1 answer:
lora16 [44]3 years ago
6 0

Answer:

a. Does this qualify as a good Section 351 transaction?

Answer: No. This is because service is not a qualified property contribution under the section 321. Moreover, fair value of stock received by Chrissie is just 75% of 100%.

b. What gain does Chrissie Recognize?

Answer: The Gain Chrissie recognizes = FMV of stock received - Adjusted basis of transferred property = $750,000 - $500,000 = $250,000.

c. What gain does Mirinda recognize?

Answer: The Gain Mirinda recognizes is $0 or Mirinda will recognizes compensation worth which will be taxed as an ordinary Income ($250,000).

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Applicants for positions at a product distribution site are required to demonstrate the ability to drive a forklift and operate
FromTheMoon [43]

Answer:

The correct answer is b. recruitment and selection .

Explanation:

In the recruitment process, all the information of the employee, his experience, studies, skills, hobbies, family circle, expectations, aspirations, etc. is collected. From this moment on, a series of tests are carried out to determine that what has been previously stated is true, as well as simulating situations to know their behavior in the face of challenges of a different nature. In the particular case, technical skills in forklift driving and machine skills are required, which requires verification and practice processes to determine the suitability of the candidate to successfully execute this position.

3 0
3 years ago
Primrose Yard receives 15,000 large trees each year that they process into 15,000 rough logs. Currently, Primrose sells the roug
Kazeer [188]

Answer:

c. It should process further because the reduction in the cost of the trees is irrelevant.

Explanation:

For the purpose of this Decision,

Benefit of processing further = Sales Value after processing – Sale Value before processing – Further Processing costs

Cost of acquiring trees is a sunk cost already incurred and hence is not relevant

Hence, benefit of processing = (0.80-0.20)*350 – 50

= $160

Hence, the answer is

c. It should process further because the reduction in the cost of the trees is irrelevant.

7 0
3 years ago
Downsizing describes the practice of companies shifting their production overseas.
quester [9]
Downsizing is the reduction of employees in a company's payroll. It involves the elimination of some positions and thus reducing the operational cost of the company. The given statement "Downsizing describes the practice of companies shifting their production overseas" is false. Downsizing does not<span> describe the practice of companies shifting their production overseas</span>
3 0
3 years ago
Kellyanne hired Joshua from Southwest University. He was an amazing employee and exceeded all her expectations. The next year, s
Anastasy [175]

Answer:

Representativeness heuristic bias

Explanation:

Representativeness heuristic bias occurs when there are similar events whose probability of occurrence is assumed to be the same. People mistakenly assume there is a close relationship between the two events than there really is.

For example of John is a lawyer, he is judged to be a lawyer because of expression of various traits associated with lawyers.

Kellyanne hired Joshua from Southwest University. Because of his outstanding performance, it is assumed that other considered from Southwest University will also perform outstandingly.

This is a form of representativeness heuristic bias

7 0
3 years ago
Equipment costing $130,000 is expected to have a residual value of $10,000 at the end of its six-year useful life. The equipment
Natalija [7]

Answer:

a. Straight-Line method:

Year depreciation = (Cost - Residual value) / useful life

= (130,000 - 10,000) / 6

= $20,000

2019 = $20,000                                      2020 = $20,000

b. Double declining.

= Twice the rate of straight-line.

= 1 / 6 * 2

= 33%

2019                                                            2020

= 130,000 * 33%                                        = (130,000 - 42,900) * 33%

= $42,900                                                 = $28,743

c. Units of Production:

Rate per unit = (Cost - residual) / Number of units in lifetime

= (130,000 - 10,000) / 1,000,000

= $0.12 per unit

2019                                                              2020

= 180,000 * 0.12                                           = 140,000 * 0.12

= $21,600                                                     = $16,800

6 0
3 years ago
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