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stiks02 [169]
2 years ago
8

Mars Corporation merges into Jupiter Corporation by exchanging all of its assets for 300,000 shares of Jupiter stock valued at $

2 per share and $100,000 cash. Wanda, the sole shareholder of Mars, surrenders her Mars stock (basis $900,000) and receives all of the Jupiter stock transferred to Mars plus the $100,000. How does Wanda treat this transaction on her tax return
Business
1 answer:
MA_775_DIABLO [31]2 years ago
3 0

Answer: capital loss of $200000

Explanation:

To solve the question goes thus:

Value of shares that was received from Jupiter = 300000 × $2 = $600,000

Cash received = $100,000

Total gotten = $700,000

We then deduct the value of stock that was foregone by Mars. This will be:

= $700,000 - $900,000

= - $200,000

Therefore, a capital loss of $200,000 would be disclosed in the Income tax return.

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A)The playing life of a Sunshine radio is normally distributed with mean  = 600 hours
Jlenok [28]
What is your favorite food that come from your culture mine are probably Tomales
7 0
3 years ago
Bernie wants to go into the business of construction contracting. Among the reasons that would probably convince Bernie to set u
krek1111 [17]

Answer:

a. its greater flexibility

Explanation:

A sole proprietorship is A form of legal business structure owned by only one person. The liabilities of the owner is unlimited. It is usually flexible as decisions are made and approved by the owner.

A sole proprietorship doesn't usually have perpetual existence. It usually ends when the owner dies. It is not easy to transfer shares to other family members.

A sole proprietorship gives the owner the opportunity to be involved in the day to day running of the business.

I hope my answer helps you.

6 0
3 years ago
If the next year’s dividend is forecast to be $5.00, the constant growth rate is 4%, and the discount rate is 16%, then the curr
SCORPION-xisa [38]

Answer:

The answer is $41.67

Explanation:

Po = D1/r - g. This formula is called Discount Dividend Model and it is one of the methods used in valuing company's stock.

Po is the present or current value of the stock

D1 is the next year dividend payment

r is the discount rate

g is the growth rate.

Po = $5.00 /0.16 - 0.04

= $5.00/0.12

=$41.67

Therefore, the current stock price is $41.67

6 0
3 years ago
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $3,360,000 (240,00
mixer [17]

Answer:

Option (C) is correct.

Explanation:

Given that,

Estimated overhead cost = $1,540,000

Estimated direct labors (in dollars) = $3,360,000

Estimated direct labor hours = 240,000

Actual overhead cost = $1,240,000

Predetermined overhead rate:

= Estimated overhead cost ÷ Estimated direct labor hours

= $1,540,000 ÷ 240,000

= $6.42 per direct labor hour

6 0
3 years ago
Corporation has two manufacturing departments--Casting and Customizing. The company used the following data at the beginning of
Pavel [41]

Answer:

Allocated overhead= $37,260

Explanation:

Giving the following information:

Total

Estimated total machine-hours (MHs) 10,000

Estimated total fixed manufacturing overhead cost $38,000

Estimated variable manufacturing overhead cost per machine-hour $4.3

<u>First, we need to calculate the plantwide predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (38,000/10,000) + 4.3

Predetermined manufacturing overhead rate= $8.1 per machine-hour

<u>Now, we can allocate overhead to Job G:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Job G

Casting machine-hours 1,600

Customizing machine-hours  3,000

Allocated overhead= 8.1* (1,600 + 3,000)= $37,260

6 0
3 years ago
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