Answers
Answer:
$20,000
Explanation:
The computation of the taxable gain is shown below:
The corporate gain is
= $40,000 - $20,000
= $20,000
Now the stock basis is increased i.e.
= $20,000 + $20,000
= $40.000
Now the stock basis decreased to zero i.e.
= $40,000 - $40,000
= $0
So, here the taxable gain is of $20,000
Related Questions
If you were a career woman and time for you to love to do becomes a problem,which would you prefer to use of your baking needs— a commercial prepared mix or a home prepared mix?What important factors did you consider in making your choice?
You are saving for the college education of your two children. They are two years apart in age; one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $40,000 per year per child, payable at the beginning of each school year. The appropriate interest rate is 7 percent. Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college for each child. How much money must you deposit in an account each year to fund your children’s education?
Monte Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the brake repairs 1.0 hour Hourly wage rate $12 Payroll taxes of wage rate 10% Setup and downtime of actual labor time 20% Cleanup and rest periods 30% of actual labor time Fringe benefits 25% of wage rate a. Determine the standard direct labor hours per brake repairs. (Round answer to 2 decimal places, e.g. 1.25.) Standard direct labor hours per brake repair_____________ b. Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 1.25.) Standard direct labor hourly rate __________ c. Determine the standard direct labor cost per brake repair. (Round answer to 2 decimal places, e.g. 1.25.)
In the 1990s thousands of "dot-com" companies emerged with great fanfare to take advantage of the Internet and new information technologies. A few, like Google, eBay, and Amazon, have generally thrived and prospered, but many others struggled and eventually failed. Explain these varied outcomes in terms of how the market system answers the question "What goods and services will be produced?"
Answers
Answer:
Fixed Cost 216,640
Explanation:
The first step is calculate the difference between activity levels
This tell us 25 units generated cost for 154,000
154,000 / 25 = Variable Cost = 6,250
Now we use either the low or high values to solve for fixedcost:
total = variable + fixed
fixed = total - variable
HIGH
Total Cost 500,000
Variable 283,360 (6,250 x 46)
Fixed Cost 216,640
LOW
Total Cost 346,000
Variable 129,360 (6,250 x 21)
Fixed Cost 216,640
Answers
Answer:
Please see journals below
Explanation:
Retained earnings Dr $104,000
Common dividend payable Cr $104,000
Common dividend payable Dr $104,000
Cash Cr. $104,000
Retained earnings Dr $100,100
Common dividends payable Cr $100,100
Common dividends payable Dr $100,100
Cash Cr $100,100
Retained earnings Dr $110,000
Common dividends payable Cr $110,000
Working
Dividends payable
= 190,000 × $0.55
= $104,000
Common dividend payable
= $0.55 × (190,000 shares - 8,000 shares)
= $100,100
Answers
Suppose that Intel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%.
What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to (a) $44; (b) $40; (c) $36?
Answer:
Initial worth of brokerage account = 500 × $40 = $20,000
a). if the price changes to $44, then:
worth of brokerage account becomes = 500 × $44 = $22,000
∴ percentage increase = (22,000 - 20,000) / 20,000 = 10% increase.
b). if the price changes to $40, then:
worth of brokerage account becomes = 500 × $40 = $20,000
∴ percentage increase = (20,000 - 20,000) / 20,000 = 0 or no increase.
c). if the price changes to $36, then:
worth of brokerage account becomes = 500 × $36 = $18,000
∴ percentage increase = (18,000 - 20,000) / 20,000 = 10% decrease
2. Sep 8 Purchase painting equipment for $21,000 cash.
3. Sep 12 Purchase office supplies on account for $3,500.
4. Sep 15 Pay employee salaries of $4,200 for the current month.
5. Sept 19 Purchase advertising to appear in the current month for $1,000 cash.
6. Sep 22 Pay office rent of $5,400 for the current month.
7. Sep 26 Receive $15,000 from customers in (1) above.
8. Sep 30 Receive cash of $6,000 in advance from a customer who plans to have his house painted in the following month.
a) Record each transaction. The company uses the following accounts: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Deferred Revenue, Common Stock, Retained Earnings, Service Revenue, Salaries Expense, Advertising Expense, Rent Expense.
Answers
Answer:
Explanation:
The journal entries are shown below:
1. Account receivable A/c Dr $20,000
To Deferred revenue A/c $20,000
(Being the paint house on account is recorded)
2. Equipment A/c Dr $21,000
To Cash A/c $21,000
(Being the equipment is purchased for cash)
3. Supplies A/c Dr $3,500
To Accounts Payable A/c $3,500
(Being the office supplies are purchased on credit basis)
4. Salaries expense A/c Dr $4,200
To Cash A/c $4,200
(Being the employees salaries are paid for cash)
5. Advertising expense A/c Dr $1,000
To Cash A/c $1,000
(Being the advertising are purchase for cash)
6. Rent expense A/c $5,400
To Cash A/c $5,400
(Being the rent is paid for cash)
7. Cash A/c Dr $15,000
To Account receivable A/c $15,000
(Being the cash is received)
8. Cash A/c Dr $6,0000
To Deferred revenue $6,000
(Being the cash is received)
Final answer:
The transactions of the Boilermaker House Painting Company are recorded considering the cash flow, accounts receivable, and deferred revenues with specific monetary changes respective of each transaction.
Explanation:
The transactions for Boilermaker House Painting Company can be recorded as follows:
- Accounts Receivable $20,000 | Service Revenue $20,000 - the company painted houses on credit.
- Equipment $21,000 | Cash $21,000 - the company purchased equipment for cash.
- Supplies $3,500 | Accounts Payable $3,500 - the company purchased office supplies on credit.
- Salaries Expense $4,200 | Cash $4,200 - the company paid employee salaries.
- Advertising Expense $1,000 | Cash $1,000 - the company purchased advertising for cash.
- Rent Expense $5,400 | Cash $5,400 - the company paid office rent.
- Cash $15,000 | Accounts Receivable $15,000 - the company received cash from customers.
- Deferred Revenue $6,000 | Cash $6,000 - the company received cash in advance from a customer.
Learn more about Accounting Transactions here:
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b. Some hamburgers that are valued more highly by consumers than their opportunity cost of production are not being produced and sold
c. Some hamburgers produced incur opportunity costs of production that exceed their value or marginal benefit to consumers.
Which of the following must be true for a market to be able to achieve an efficient outcome?
a. The market price is determined solely by the forces of supply of and demand for a good.
b. Firms can freely enter or exit the market without any barriers.
c. Private property rights are well-defined and enforced.
Answers
Answer:
a. The opportunity cost of producing the last hamburger equals the marginal benefit of consumption.
2. a. The market price is determined solely by the forces of supply of and demand for a good.
Explanation:
1. Since all the hamburgers are sold at an equilibrium price of $5 and all the hamburgers are sold, that is clear reflection that the opportunity cost that is the benefit foregone in order to produce the last hamburger = the maximum price that the consumer can pay for buying the additional hamburger, that is marginal benefit.
In that case the producer shall always produce the additional hamburger.
Accordingly the outcome in market is economically efficient.
2. When the price is determined by the forces of supply and demand, that is at a point where the intersection of supply and demand forces takes place, it is the most efficient outcome, as at that price maximum consumers are ready to buy, and also maximum supplies are ready to be done, both are satisfied at their levels.
Answers
Answer:
B
Explanation: