Detcrmine the basis of stock in the tands of the sharcholder in cach of the following instances. Assume that the 80% rule is met in all cases. a. Contribution of property with a basis of $1.000 and an FMV of $1.400. b. Contribution of property with a basis of $3,000 and an FMV of $3.800. The stockholder also received $500 cash from the corporation as part of the stock transaction. Contribution of property with a basis of $8,200 and an FMV of $12.500. The stock- holder also received property with an kiMV of $1.700 from the corporation as part of the stock transachion. d. Contribution of a building with an FMV of $200.000. a mortgage assumed by the corporation) of $100.000 and a basis of S19s on Contribution of a building with an FMV of $1.700.000, a mortgage (assumed by the corporation) of $1.000.000, and a basis of $635.000.

Detcrmine the basis of stock in the tands of the sharcholder in cach of the following instances. Assume that the 80% rule is met in all cases. a. Contribution of property with a basis of $1.000 and an FMV of $1.400. b. Contribution of property with a basis of $3,000 and an FMV of $3.800. The stockholder also received $500 cash from the corporation as part of the stock transaction. Contribution of property with a basis of $8,200 and an FMV of $12.500. The stock- holder also received property with an kiMV of $1.700 from the corporation as part of the stock transachion. d. Contribution of a building with an FMV of $200.000. a mortgage assumed by the corporation) of $100.000 and a basis of S19s on Contribution of a building with an FMV of $1.700.000, a mortgage (assumed by the corporation) of $1.000.000, and a basis of $635.000.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 10CDQ: Assume that as of January 1, 20Y8, Sylvester Con- suiting has total assets of $500,000 and total...

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Determine the basis of stock in the hands of the shareholder in each of the following instances. Assume that the 80% rule is met in all cases. Required: Contribution of property with a basis of $3,000 and an FMV of $3,400. Contribution of property with a basis of $7,000 and an FMV of $10,200. The stockholder also received $2,500 cash from the corporation as part of the stock transaction. Contribution of property with a basis of $10,200 and an FMV of $16,500. The stockholder also received property with an FMV of $3,700 from the corporation as part of the stock transaction. Contribution of a building with an FMV of $300,000, a mortgage (assumed by the corporation) of $200,000, and a basis of $325,000. Contribution of a building with an FMV of $1,900,000, a mortgage (assumed by the corporation) of $1,200,000, and a basis of $735,000.
Assume that as of January 1, 20Y8, Sylvester Con- suiting has total assets of $500,000 and total assets of $150,000. As of December 31, 20Y8, Sylvester has total liabilities of $200,000 and total stockholders’ equity of $400,000. (a) What was Sylvester’s stockholders’ equity as of January 1, 20Y8? (b) Assume that Sylvester did not pay any dividends during 20Y8. What was the amount of net income for 20Y8?
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SFP accounts of Sandhill Inc., which follows IFRS, follow: Debit accounts Cash FV-NI investments Accounts receivable Merchandise inventory Machinery Buildings Land Credit accounts Sandhill Inc. Comparative Statement of Financial Position Accounts December 31, 2023 and 2022 Allowance for expected credit losses Accumulated depreciation-machinery Accumulated depreciation-buildings Accounts payable Accrued liabilities Income taxes payable Long-term note payable-non-trade Common shares Retained earnings Additional information: 1 2 3. 4. 2023 $44,900 22,660 67,390 30,430 29,400 67,420 7,500 $269,700 $1,290 5,795 13,350 29,590 2,405 910 26,300 150,000 40,060 $269,700 2022 $33,400 40,000 59,900 24,400 Sandhill's 2023 statement of income is as follows: 18,250 56,250 7,500 $239,700 $540 2,420 8,850 24,350 1,160 1,410 Sandhill has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 31,300 125,000 44,670 $239,700 Cash dividends…
An investor purchased 499 shares of common stock, $24 par, for $21,457. Subsequently, 117 shares were sold for $64 per share. What is the amount of gain or loss on the sale? a.$2,457 gainb.$4,680 lossc.$2,457 lossd.$4,680 gain
Prior to subscription of Color, the accounting equation of Rado’s corporation is:Asset=Liabilities+Equity P1,000,000 P 250,000 P 750,000 Color subscribed 2,500 shares at P100 par that will be due and collectible 18 months from December 31, 200B, the balance sheet date of Rado. After subscription of Color, the accounting equation of Rado would be Total AssetsTotal LiabilitiesStockholders equity a.P1,250,000P250,000P1,000,000 b.P1,250,000P500,000P 750,000 c.P1,000,000P250,000P 750,000 d.P1,000,000P500,000P 750000
Ma1. -The market value of Investee is $1,000,000. Investor owns 20% of Investee's common stock. Investee reported net income of $200,000 and paid cash dividends in the amount of $40,000. a. The investment income that Investor will recognize is $8,000 b. The investment income that Investor will recognize is $40,000 c. The investment income that Investor will recognize is $32,000 d. Investment income cannot be determined from the information provided. -Suppose that, in the previous question, Investor does not have the ability to exercise significant influence over Investee. The investment income that Investor will recognize is: a. $8,000 b. $40,000 c. $32,000 d. cannot be determined
Calculate (a) interest expense, (b) taxable income, and (c) earnings per share if: DFL = 1.56, EBIT = $702,000; tax rate = 25%, common stock outstanding = 100,000 shares. Show work.
The par value per share of common stock represents the a. minimum selling price of the stock established by the articles of incorporation O b. amount of dividend per share to be received each year O C. minimum amount the stockholder will receive when the corporation is liquidated O d. dollar amount assigned to each share Previous paoe
An investor purchased 542 shares of common stock, $24 par, for $18,970. Subsequently, 111 shares were sold for $28 per share. What is the amount of gain or loss on the sale? a. $777 gain b. $1,221 gain c. $1,221 loss Od. $777 loss
3. Earnings and Profits. A distribution is made when D, Inc. has assets valued at $500,000 (basis of $300,000), E&P of $80,000, and 10,000 shares of stock out-standing. T receives assets valued at $100,000 (basis of $60,000) for all his D stock (2,000 shares with a basis of $25,000). Compute the corporation’s E&P balance after the exchange if it is treated as (a) a dividend, or as (b) a sale.
e. Paid the cash dividends declared in (d). Description Debit Credit Cash Dividends Payable v 70,000 Cash v 300,150 X f. Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150. Description Debit Credit Available-for-Sale Investments-Solstice Corp. Bonds 264,000 x Cash 264,000 x