Michael transfers a commercial building to his newly formed corporation, Build Corp., in exchange for 1,000 shares of stock worth $200,000 and a company vehicle worth $30,000. The building's adjusted basis is $150,000. What is Michael's recognized gain on the transfer?
Q: Compute the net cash provided by opreting activities using the incorrect method??
A: Step 1: Definition of Operating ActivitiesOperating activities are the primary revenue-generating…
Q: At the beginning of the year, a company estimates the following manufacturing costs for the next…
A: Explanation of Direct Labor: Direct labor represents the wages and related costs of employees who…
Q: Please given correct answer general accounting
A: He borrowed $50,000 at 12% interest on September 1 for 6 months. However, the question asks how much…
Q: Financial accounting
A: Step 1: Define Net IncomeThe net revenue earned on which taxes are paid after the business expenses…
Q: Solution want
A: To calculate the amount in Common Stock, we use the accounting equation:…
Q: Which of the following is false? a. A company can have a transaction that affects only the left side…
A: The correct answer is:b. In each accounting transaction, total debits to assets must be equal to…
Q: What is the total investment amount required for the project on these financial accounting question?
A: Step 1: Define InvestmentThe primary motive of investment is the generation of income or revenue or…
Q: White Co. incurs a cost of $15 per pound to produce Product X, which it sells for $26 per pound. The…
A: Step 1: Introduction to cost accountingThe field of accounting known as cost accounting is utilized…
Q: Merchandise is sold on account to a customer for $72,500, terms GEB shipping point, 3/10, n/30. The…
A: Concept of Terms of Sale (3/10, n/30): This term defines the payment agreement between the buyer and…
Q: Calculate the amount paid for goodwill???
A: Step 1: Define GoodwillThere are some assets that are recorded on the balance sheet of the company…
Q: WaNt AnSwEr
A: Explanation of Balance Sheet: A balance sheet is a financial statement that provides a snapshot of a…
Q: None
A: Step 1: Define NoteThe note can be defined as a promissory note that is issued by the borrower that…
Q: Don't use ai given answer accounting questions
A: Step 1: Definition of Credit SalesCredit sales represent the total value of sales made on credit…
Q: How much was the labor efficiency variance??
A: Step 1: Define Variance AnalysisAny variance between set standards and actual performance can either…
Q: Hi expert please give me answer general accounting question
A: Step 1: Definition of Total Cost of ProductionTotal cost of production refers to the total cost…
Q: General Account
A: Concept of Plantwide Overhead Rate: The plantwide overhead rate is a single rate used to allocate…
Q: Get correct answer accounting questions
A: Step 1: Definition of DepletionDepletion is the allocation of the cost of natural resources, such…
Q: I need this question answer general Accounting
A: Step 1: Define Interest on Note PayableInterest on note payable is calculated using simple interest…
Q: Please provide solution this accounting problem without use Ai
A: Step 1: Define Retained EarningsRetained earnings represent the portion of a company's net income…
Q: Kindly help me with accounting questions
A: Step 1: Definition of Operating LeverageOperating leverage measures the sensitivity of a company's…
Q: Not use ai solution given correct answer general Accounting
A: Explanation: The formula to calculate material price variance is as follows:Material price variance…
Q: Sub. General Account
A: Step 1: Key FormulaThe total cost of finished goods is comprised of: Total Cost=Direct…
Q: Calculate free cash flow? General accounting
A: Free Cash Flow (FCF) CalculationFree Cash Flow (FCF) measures the cash a company generates from its…
Q: Calculate the standard cost per unit for ABC company??
A: Step 1: Define Standard costsThe standard costs are determined to calculate the per unit cost of the…
Q: A firm operated at 90% capacity for the past year, during which fixed costs were $320,000, variable…
A: Step 1: Introduction to income statementIncome statement is referred to as the financial statement…
Q: What is the company's estimated EOQ on these general accounting question?
A: The Economic Order Quantity (EOQ) formula is used to calculate the optimal order quantity that…
Q: Total assets change during that same period?
A: Step 1: Write the Accounting Equation• Assets = Liabilities + Stockholders' Equity Step 2: Identify…
Q: Company's estimated cost of goods sold?
A: Explanation of Beginning Inventory: Beginning inventory represents the value of goods on hand at the…
Q: What is the degree of opereting leverage???
A: 1. Calculate Total Revenue:Total Revenue = Units Sold * Unit PriceTotal Revenue = 2,000 units *…
Q: Kindly help me with general accounting question
A: Step 1: Define Gross Profit MarginIn measuring corporate performance, the calculation of gross…
Q: The following information came from solution general accounting question
A: Step 1: Define Inventory TurnoverThe inventory ratio is a metric that shows how quickly a business…
Q: Wilson electronics has a market solution general accounting question
A: Step 1: Definition of Debt-to-Capital RatioThe debt-to-capital ratio measures the proportion of debt…
Q: If a company’s revenue is $65,000, the cost of goods sold is $38,000, and operating expenses are…
A: Concept of RevenueRevenue refers to the total income a company earns from its business activities…
Q: Quick answer of this accounting questions
A: Step 1: Calculate the percentage change in salesStep 2: Calculate the percentage change in net…
Q: General Accounting
A: Step 1: Define Return on Total Assets (ROTA)ROTA measures a company's ability to generate earnings…
Q: If an asset is purchased on credit, what is the effect on the accounting equation? (a) Assets…
A: Concept of AssetsAssets are resources owned by a business that have economic value and can be used…
Q: What is the amount of the check for this accounting question?
A: Step 1: Define Credit Terms and DiscountCredit terms, such as 3/15, n/45, mean the buyer can take a…
Q: I need this question answer general accounting question
A: Step 1: Define Actual return of plan assetsThe term actual return of plan assets is a component used…
Q: Kindly help me with accounting questions
A: Step 1: Definition of Actual Price Per PoundThe actual price per pound is calculated by dividing the…
Q: What is the net income of the firm on these general accounting question?
A: Step 1: Net income before tax Net income before tax = Sales - Costs - Depreciation expense -…
Q: If you give me correct answer this accounting question I will give you helpful rate
A: Step 1: Define Joint Cost Allocation Using Value BasisJoint cost allocation using a value basis is a…
Q: Need help with this general accounting question
A: Detailed explanation:Given:Projected Benefit Obligation $ 551,500Plan Assets $ 313,400Prior Service…
Q: Kindly help me with accounting questions
A: Step 1: Definition of Net IncomeNet income is the total revenue of a company minus all expenses,…
Q: Which of the following account
A: Explanation: In accounting, there are three types of accounts - Real accounts; Personal accounts;…
Q: What is the absorption cost per unit on these general accounting question?
A: Step 1: Define Absorption CostingAbsorption costing is a costing method that includes all variable…
Q: I want to correct answer general accounting question
A: Step 1: Definition of Factory OverheadsFactory Overheads are indirect costs incurred during…
Q: What is net income under absorption costing???
A: Detailed explanation:Net Income using Variable Costing $ 908,000Less Change in Inventory :…
Q: Calculate it's gross profit?
A: Step 1: Define Gross Profit MarginIn financial accounting, the gross profit margin, also known as…
Q: Please provide this question solution general accounting
A: Step 1: Definition of Net Cash Flow from Operating ActivitiesNet cash flow from operating activities…
Q: Compute the net income
A: Explanation of Sales Revenue:Sales revenue refers to the total amount earned by a company from…
Kindly help me with accounting questions
Step by step
Solved in 2 steps
- Your client has a real estate asset used in his business. He exchanges it for a like-kind real estate asset owned by Ava. The basis of your client's asset is $50,000 and he gives Ava $25,000 cash plus the asset in exchange for Ava's asset, which is worth $40,000. Ava's basis in her original asset is $9,000. What is Ava's gain or loss? A. $25,000 gain recognized. $31,000 gain realized and recognized. C. $0 gain recognized. D. $0 loss recognized.Jimmy transfers a building with an adjusted basis of $50,000 and a fair-market value of $150,000 to XYZ Inc. in return for 100% of its stock. The building is subject to a $100,000 mortgage, which XYZ Inc. assumes. Please calculate the amount of any gain that Jimmy will report. Please also calculate Jimmy's basis in the stock. Show all of your work.Nicole and Alex get together to form a new corporation, TBTM Inc. (The Better Tax Museum, a competitor to The Tax Museum). Nicole contributes a building that has a tax basis of $700,000 and a fair market value of $850,000 in exchange for 75% of the stock and $100,000 in cash. Alex contributes $250,000 cash for 25% of the stock. A. How much taxable gain does Nicole have in the transaction? B. What basis does TBTM Corp take in the building? C. What basis does Nicole take in the stock received? D.
- I have answered this question and am looking to see if it is correct. Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $110,000 and fair market value of $165,000). Simon invests $130,000 of cash. They each receive 100 shares in Ion Corporation, worth $130,000, but Yvonne also receives $35,000 of cash from Ion. Calculate Ion Corporation’s basis in the equipment. In addition, determine Yvonne and Simon’s basis in the Ion stock. Yvonne received cash, Ion Corporation subject to section 351 treatment. The gain which is recognized for Yvonne is the lower of the realized gain and the boot. The realized gain is $55,000 and the boot is $35,000 so the recognized gain for Yvonne is $35,000 Yvonne’s basis of stock is $110,000 Ion’s stock basis is $145,000 Simon’s stock basis is $130,000Stephanie owns a machine (adjusted basis of $90,000; the fair market value of $125,000) that she uses in her business. She exchanges it for another machine (worth $100,000) and stock (worth $25,000). a. Stephanie's realized gain is $ ... and recognized gain is $.. b. The basis of the new machine is $. c. The basis in the stock she received is $Six years ago, Donna purchased land as an investment. The land cost $150,000 and is now worth $480,000. Donna plans to transfer the land to Development Corporation, which will subdivide it and sell individual tracts. Development's income on the land sales will be ordinary in character. Read the requirements. Requirement a. What are the tax consequences of the asset transfer and land sales if Donna contributes the land to Development in exchange for all its stock? on the transfer of land to Development Corporation. Donna recognizes no gain or loss Development's basis in the land will be $ 150,000. All gain on the subsequent sales will be to Development. This alternative results in the pre-contribution gain post-contribution profit earned from subdividing the land ordinary income that accrued prior to Donna's transfer and the being taxed at a 21% tax rate. Requirement b. In what alternative ways can the transaction be structured to achieve more favorable tax results? Assume Donna's…
- What is the sale?9Please explain Barbara is trading real property used solely for business purposes for new real property to be used in his business. Barbara's current property has a fair market value of $330,000, but her adjusted basis in the property is $275,000. In this exchange Barbara will receive a new property worth $290,000 and $40,000 in cash. What is Barbara's recognized gain or loss in the current year related to this exchange?
- gostino purchased five crypto coins for $1,300 in October of 2021. He sold two of the coins for $650 in May of 2022. He later sold the remaining three coins for $695 in September of 2022. What is his net gain or loss on the coins? $85 short-term loss. $45 short-term gain. $130 short-term gain. $145 short-term gain.1 Jamie plans to transfer a piece of equipment which is capital property to him, to a corporation he owns. The equipment has an Adjusted Cost Base (ACB) of $90,000, a Undepreciated Capital Cost (UCC) balance of $60,000 and a Fair Market Value (FMV) of $70,000. Jamie has $10,000 in taxable capital losses that he is concerned he won't be able to use in the future. What would you recommend to Jamie as an elected amount if he wants to defer as much tax as he can and use the losses?Mario and Luigi each own half of a mushroom pizza parlor. They want to expand by purchasing a second brick oven for $30,000. They give Koopa Fund a 10% stake in the pizza parlor in exchange for the necessary capital. From this, we can infer that Luigi must have valued his stake in the business to be worth no more than x. What is x?