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natima [27]
3 years ago
5

Shauna and Danielle decided to liquidate their jointly owned corporation, Woodward Fashions Inc. (WFI). After liquidating its re

maining inventory and paying off its remaining liabilities, WFI had the following tax accounting balance sheet:
FMV Adjusted Basis Appreciation
Cash $ 200,000 $ 200,000
Building 50,000 10,000 40,000
Land 150,000 90,000 60,000
Total $ 400,000 $ 300,000 $ 100,000

Under the terms of the agreement, Shauna will receive the $200,000 cash in exchange for her 50 percent interest in WFI. Shauna's tax basis in her WFI stock is $50,000. Danielle will receive the building and land in exchange for her 50 percent interest in WFI. Danielle's tax basis in her WFI stock is $100,000. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.)

10.

value:
1.00 points

Required information

a. What amount of gain or loss does WFI recognize in the complete liquidation?



References

eBook & Resources

ProblemDifficulty: 2 MediumLearning Objective: 19-05 Calculate the tax consequences that apply to the parties to a complete liquidation of a corporation.

Check my work

11.

value:
1.00 points

Required information

b. What amount of gain or loss does Shauna recognize in the complete liquidation?



References

eBook & Resources

ProblemDifficulty: 2 MediumLearning Objective: 19-05 Calculate the tax consequences that apply to the parties to a complete liquidation of a corporation.

Check my work

12.

value:
1.00 points

Required information

c. What amount of gain or loss does Danielle recognize in the complete liquidation?



References

eBook & Resources

ProblemDifficulty: 2 MediumLearning Objective: 19-05 Calculate the tax consequences that apply to the parties to a complete liquidation of a corporation.

Check my work

13.

value:
1.00 points

Required information

d. What is Danielle’s tax basis in the building and land after the complete liquidation?
Business
1 answer:
yan [13]3 years ago
4 0

Answer:

1. Based on the information given WFI transaction is a taxable transaction which include a recognizes gain of the amount of $40,000 on the transfer of the building as.well as gain of the amount of $60,000 on the transfer of the land.

2. Shauna will recognizes gain of the amountc of $150,000 on the transfer of her stock made to WFI calculated as ($200,000 - $50,000) .

Explanation:

1. Based on the information given WFI transaction is a taxable transaction which include a recognizes gain of the amount of $40,000 on the transfer of the building as.well as gain of the amount of $60,000 on the transfer of the land.

2. Shauna will recognizes gain of the amount of $150,000 on the transfer of her stock made to WFI calculated as ($200,000 - $50,000) .

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Investment companies or mutual funds that continue to sell and repurchase shares after their initial public offerings are referr
Furkat [3]

Answer:

Open end

Explanation:

Open end otherwise known as mutual fund are those investments offered through fund companies which sells shares directly to investors. In an open end fund investment, there is no limit to the number of shares that can be offered therein. The shares traded are unlimited which means that shares can be issued in as much can be backed up with funds.

The prices for open end funds are fixed once daily which shows the performance of the investment for that day hence the only price at which investment shares can be bought for that day.

5 0
3 years ago
"Liberty may be endangered by the abuse of liberty, but also by the abuse of power."—James Madison Which of the following statem
Alex73 [517]

Answer:

James Madison is known as the Father of the Constitution, and he worked very hard to limit the powers of the government branches, so that no government branch would be more powerful than the other two. He was a great supporter of the Bill of Rights, which also limited the power of the government towards the citizens of the nation.  

This specific quote refers to the checks and balances system that prevents any of the three branches of the US government; executive, legislative and judicial, from becoming too powerful.

5 0
3 years ago
Some one can answer pls?
olga_2 [115]
The prospect of greater market share and setting themselves apart from the competition is an incentive for firms to innovate and make better products. But no firm possesses a dominant market share in perfect competition. Profit margins are also fixed by demand and supply.

A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price at which it sells goods. If a perfectly competitive firm attempts to charge even a tiny amount more than the market price, it will be unable to make any sales.
Perfect competition occurs when there are many sellers, there is easy entry and exiting of firms, products are identical from one seller to another, and sellers are price takers.
The market structure is the conditions in an industry, such as number of sellers, how easy or difficult it is for a new firm to enter, and the type of products that are sold.

Hope this helps:)
8 0
3 years ago
A study reported that a 10% increase in the price of cigarettes would reduce consumption by 4% in the short-run and by 7.5% in t
Alja [10]

Answer:

Price elasticity of demand shows how much a 1% change in the price of a good or services changes the quantity demanded.

In the short run, a 10% increase in price decreases quantity demanded by 4%

PED short run = % change in price / % change in quantity = 4% / 10% = 0.4

PED long run = % change in price / % change in quantity = 7.5% / 10% = 0.75

Both PEDs are inelastic since they are less than 1, which means that an increase in price will result in a proportionally smaller decrease in the quantity demanded. But the PED in the long run is less inelastic, which means that an increase in price will decrease the quantity demanded more in the long than in the short run.

This happens because smokes consider that cigarettes are a basic necessity, so they are willing to purchase them even if the price increases. But as time passes (long run), more smokers will consider that it is not worth paying that much for cigarettes and will probably quit smoking or at least reduce the number of cigarettes they smoke per day.

8 0
3 years ago
Ye’ Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would like to reduce her oak lumber inventory by d
mihalych1998 [28]

Answer:

The EOQ is 642

The reorder point is 2,699

Explanation:

In order to calculate the EOQ we would have to calculate the following formila:

EOQ=√2DS/H

According to the given data we have the following:

D = 55,000

S = 21

H=40%*purchase cost

H=0.4*14 = 5.6

Therefore, EOQ=√(2*55,000*21)/5.6

EOQ=642

To calculate the reorder point If a service level of 98% is desired during the reorder interval, we would have to use the following formula:

reorder point=dL+z√σ∧2dL+σ∧2Ld∧2

reorder point=(7*205.22)+√(2.05*√(5∧2*7)+(3∧2*205.22∧2)

reorder point=2,699

7 0
3 years ago
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