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umka21 [38]
3 years ago
14

Glenda is the sole shareholder of Condor Corporation. She sold her stock to Melissa on October 31 for $150,000. Glenda's basis i

n Condor stock was $50,000 at the start of the year. Condor distributed land to Glenda immediately before the sale. Condor's basis in the land was $20,000 (fair market value of $25,000). On December 31, Melissa received a $75,000 cash distribution from Condor. During the year, Condor has $20,000 of current E & P and its accumulated E balance on January I is $10,000. Which of the following statements is true?
a. Glenda recognizes a $110,000 gain on the sale of her stock
b. Glenda recognizes a $100,000 gain on the sale of her stock
c. Melissa receives $5,000 of dividend income.
d. Glenda receives $20,000 of dividend income.
e. None of the above.
Business
1 answer:
Eduardwww [97]3 years ago
8 0

Answer:

a. Glenda recognizes a $110,000 gain on the sale of her stock

Explanation:

Based on the information given the statements that is true is GLENDA RECOGNIZES A $110,000 GAIN ON THE SALE OF HER STOCK calculated as:

Recognizes Gain On The Sale Of Stock=[Sales price-(Basis in Condor stock - Basis recovery on distribution)]

Let plug in the formula

Recognizes Gain On The Sale Of Stock=[$150,000-($50,000-$10,000)]

Recognizes Gain On The Sale Of Stock=$150,000-$40,000

Recognizes Gain On The Sale Of Stock=$110,000 gain

Therefore Glenda recognizes a $110,000 gain on the sale of her stock.

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neonofarm [45]

Answer: 64.47%

Explanation:

Units produced in October = 17470

Units production in the most efficient way = 27,100

Therefore, the capacity utilization rate in October for the factory will be:

= Units produced in October / Units production in the most efficient way

= 17470 / 27100

= 0.6447

= 64.47%

The capacity utilization rate in October for this factory is 64.47%.

7 0
3 years ago
the trasportation costs involved in getting a product to a cosumer after the product has been made are 1. transaction costs 2.co
Elena-2011 [213]
The right answer for the question that is being asked and shown above is that: "<span> 4.independent costs." </span>The trasportation costs involved in getting a product to a cosumer after the product has been made are <span> 4.independent costs</span>
3 0
3 years ago
Why is it important for business people, who are increasingly exposed to research results, to study marketing research?
LUCKY_DIMON [66]

Answer:

D) All of the above

  • a. So they won't take research results at face value
  • b. So they will know how to ask the right questions about the research
  • c. So they can determine the validity of the results

Explanation:

Marketing research is defined as the process of collecting, analyzing and interpreting information that can be used to develop, implement and monitor a company's marketing plan.

Imagine if a manager received a study, he/she cannot take for granted that the study was well developed, carried out and the results were interpreted correctly. The manager must know how to evaluate if the parameters of a research are correct or if the results are valid or not.

4 0
3 years ago
A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each. Suppose the owner of the pizzeria tells you t
n200080 [17]

Answer:

He will sell 600 pizzas per week if he cuts the price by 10%.

Explanation:

Price Elasticity of demand measure the responsiveness of demand to change in the price of a product. It calculates the ratio of change in demand and change in price.

Price elasticity of demand = % change in demand / % change in price

-2 = % change in demand / 10%

% Change in in demand = -2 x 10%

% Change in in demand = -20%

Following the law of demand as price decreases the demand of the product increases. So the sale of Pizzas will be increased by 20%.

Current Sale of Pizzas = 500 pizzas

Increase in sales  = 500 x 20% = 100 pizzas

Increased sale = 500 + 100 = 600 pizzas

7 0
3 years ago
What is accounting ​
andre [41]

Answer:

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position, and cash flows. Accounting is the recording of financial transactions along with storing, sorting, retrieving, summarizing, and presenting the results in various reports and analyses. Accounting is also a field of study and profession dedicated to carrying out those tasks.

Explanation:

4 0
3 years ago
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