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Digiron [165]
3 years ago
10

Jerry is a 30 percent partner in the JJM Partnership when he sells his entire interest to Lucia for $82,750 cash. At the time of

the sale, Jerry’s basis in JJM is $54,250. JJM does not have any debt or hot assets. What is Jerry’s gain or loss on the sale of his interest?
Business
1 answer:
Scrat [10]3 years ago
6 0

Answer:

Jerry's gain on the sale= $28,500

Explanation:

When Jerry sells his interest in JJM to Lucia his basis ($54,250) is what he owes and will be taken out of the proceeds he will get for selling his interest in the company.

Therefore

Jerry's gain on the sale= Amount of sale- Jerry's basis

Jerry's gain on the sale= 82,750- 54,250

Jerry's gain on the sale= $28,500

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aleksandr82 [10.1K]

Answer:

Multiplier = 3.33

Explanation:

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At Equilibrium, Investment = Savings = 750. Change in Investment = 900 - 750 = 150. Change in Income = 500.

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3 years ago
Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, what is the change in
Strike441 [17]

Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, $200 t is the change in the firm's value.

Due to the issue of the corporate tax rate is entitled to Interest Tax Shield assuming Debt issued by the firm is perpetual and ignoring financial distress costs

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=$200,

corporate tax rate, also known as corporate income tax or corporate tax, is a direct tax levied on the income or capital of a corporation or similar corporation. Many countries impose such taxes at the national level, and similar taxes may be levied at the state or local level.

Learn more about tax rate here: brainly.com/question/25791968

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On January 1, 2019, Sheffield Corp. had the following stockholders' equity accounts. Common Stock ($12 par value, 81,300 shares
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Answer:

In attachment.

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In attachment.

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