Answer:
c. Christopher will have a dual basis for income tax purposes.
Explanation:
Due to the fact that the basis of Jane in the specific property was higher than the FMV of the property on the specific date that she gave out the property, therefore, the double basis principle will apply to Christopher. In addition, Christoper will not collect any additional basis for the tax paid on the gift. The correct answer is option c.
Answer:
(D) Credit to Paid-In Capital from Treasury Stock for $800.
Explanation:
Please see attachment
Answer:
(a) Journalize the payment of the bond interest on January 1, 2022.
Dr Interest payable - bonds payable 40,400
Cr Cash 40,400
The interest expense on the bonds payable should have been accrued on the 2021 balance sheet, that is why we debit interest payable and not interest expense.
(b) Assume that on January 1, 2022, after paying interest, Blossom calls bonds having a face value of $100,000. The call price is 103. Record the redemption of the bonds.
Dr Bonds payable 100,000
Dr Call premium 3,000
Cr Cash 103,000
(c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.
interest expense = $405,000 x 8% = $32,400
Dr Interest expense - bonds payable 32,400
Cr Interest payable - bonds payable 32,400
<span>A free market exists when the government
places few restrictions on how a good or a service can be produced or sold or
on how a factor of production can be employed. A free market is an economic
system where prices are decided on if there is unrestricted competition between
privately owned businesses. Supply and demand are the main factors in a free
market and there is little to no government control. </span>
