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stiks02 [169]
3 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]3 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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Equipment was purchased for $17,000. Freight charges amounted to $700 and there was a cost of $2,000 for building a foundation a
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Answer:

Depreciation expense= $3,340

Explanation:

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4 0
3 years ago
Opportunity cost refers to:
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Hope I can help you :)
Brainliest answer?
5 0
4 years ago
2. Mr Ralston, a retired postal worker, took his trolley to the check-out at Tip-Top Supermarket. When the cashier started to en
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Mr Ralston’s action didn't constitute a contract in this case,since he hasn't taken the goods away and the groceries haven't been tallied.

<h3>What is a contract?</h3>

It should be noted that a contract simply means an agreement between private parties that's enforceable by law.

In this case, Ralston’s action didn't constitute a contract in this case,since he hasn't taken the goods away and the groceries haven't been tallied.

The features of a contract that should be taken into consideration include acceptance and internation to create legal relations.

The supervisor would not likely succeed should he proceed with legal action.

Learn more about contract on:

brainly.com/question/5746834

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3 0
3 years ago
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