Answer:
Seller's proceeds = $66,300
Explanation:
Given:
Seller's costs = $14,700
Commission = $3,150
Excise tax = $650
Escrow fees = $250
Loan payoff = $126,000
Purchase price receive = $210,000
Refund on property taxes paid in advance = $1,050
Computation of seller's proceeds:
Seller's proceeds = (Purchase price receive + Refund on property taxes paid in advance) - (Seller's costs + Commission + Excise tax + Escrow fees + Loan payoff)
Seller's proceeds = ($210,000 + $1,050) - ($14,700 + $3,150 + $650 + $250 + $126,000)
Seller's proceeds = ($211,050) - ($144,750)
Seller's proceeds = $66,300
Answer:
Grady's gain = $6,000
Grady's stock basis = $18,000
Explanation:
This transaction does not qualify as a Section 351 (a) transfer of property in exchanged for a corporation's stock, therefore Grady must recognize a gain.
Gain = fair market value - basis = $18,000 - $12,000 = $6,000
Grady's basis on Eadie Corp. stock is $18,000
In order to qualify as a Section 351 (a) transfer and not recognize any gain or loss, the transfer must result in an immediate control over the corporation and that doesn't happen here. Control over a corporation as defined by Section 368(c) represents at least 80% of all voting power and at least 80% of all common stock. In this case the transfer resulted in a 60% ownership, it was 20% short.
Answer: The correct answer is "d. A capital loss of $30,000 and an ordinary loss of $50,000.".
Explanation: With respect to the sale, Art has:<u> A capital loss of $30,000 and an ordinary loss of $50,000.</u>
For the shares of $ 1244 the basis is $ 120000, when Art sells the shares at $ 50,000 the loss is $ 70,000 but as Art is not married the ordinary loss that corresponds to it is $ 50,000 and $ 30,000 correspond to the remaining capital loss.
Answer:
True
Explanation:
Goal conflict is when management seeks to achieve personal departmental objectives that may work to the detriment of the entire company.
Socialization is the process through which new members learn the culture of a team or organization
