n the corporation. What is the CGT?
Q: please answer all the questions immediately thankyou
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A: SOLUTION- 1-CAPITAL BALANCE OF BANNER =65000 AND STRANGE = 35000 2- PROFIT AND LOSS AFTER ADMISSION…
Q: se explain it properly
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- 1. The capital balances of C, P and A respectively are?Partners Lacoste, Lancome and Lanvin have capital balances of P 11,200; P 13,000 ; and P 5,800, respectively and share profits and losses in the ratio 4:2:1. If Lacoste receives a total of P 3,200 in cash, how much will Lanvin have received at this point?Elaine, James, and Jeremy form Forest Corporation by transferring the following items to the corporation: Items transferred Basis Fair Market Value Number of Shares Issued From Elaine: Cash $60,000 $60,000 200 shares Equipment 30,000 340,000 From James: Land 100,000 540,000 200 shares Mortgage 140,000 140,000 From Jeremy: Office equipment 50,000 260,000* 100 shares Besides the receiving 100 shares of stock,…
- The partners of Dan and Ken are engaged in trading. Dan's original capital was P40,000 and Ken 's was P60,000. They agreed to share profits and losses as follows: Dan Ken Php28,000 10% Php40,000 10% 70% Salaries Interest on original capital Balance 30% n7 - 15. If the profits for the year were P120,000, what share of the profits would Dan receive? а. Р4,600 b. P46,400 с. Р57,400 d. P75,600Hw.54. Leader has business assets worth $8 million and NOL carryovers of $1million expiring in 14 years and of $2 million expiring in 15 years, and 100 percent of Leader’s stock is worth $10 million. If Leader sells its business assets without recognizing gain or loss, Leader can invest its $8 million liquid assets in US T-Bills earning 2.1% so that Leader can use its NOLs at the rate of $168,000 per year. The long-term tax-exempt rate is 1.71%. What will the “the §382 limitation” be if an ownership change occurs with respect to Leader’s stock? Will Leader be able to utilize the NOL’s before they expire?please answer in details within 30 minutes. its urgent.
- RCo, a transnational company sets a wholly owned subsidiar ySubA in coun try X, X's income tax rate is 25%, withholding tax rate is 10%. Two choices to invest to its SubA: (A) RCo invested 1500 into SubA. (As equity investment) (B) Lend 1500 to SubA, the interest rate is 12%. (As credit investment) Assume that SubA's yearly income is 1200 and expenses are 500 before t his investment. The amount of dividend paid to RCo. is 180. Required: (1) Compute the total group's total tax burden under the above two choic es. (2) Compare the two results and then explain why there are dif érent result s of total tax in different investments. (unit: $ thousand)1. At the Beginning of Year 1 Peter and Paul want to establish a new business in the form of a limited company. They both agree that each of them will buy 5,000 shares for a nominal value of € 10.00 each. Required a) Show the balance sheet of the new business after the transaction. b) What part of the business does Paul own (in %) and what is the value of his stake? c) What part of the business does Peter own (in %) and what is the value of his stake? 2. During Year 1 During the next year the following transactions took place: • Purchased inventories for sales € 50,000.00 (30% on credit, 70% on cash) • Sold inventories for € 90,000.00 (50% on credit) • Cost of sales was € 30,000.00 • Drawings or payment for dividends € 0.00 Required a) Show the income statement and the balance sheet for the business at the end of the year. b) What part of the business does Paul own (in %) and what is the value of his stake? c) What part of the business does Peter own (in %) and what is the value of his…Please provide correct answer
- ACE Ltd has an outstanding shares of 10,000,000 shares. Kimmy Ltd purchases 100,000 shares of ACE Ltd at $4 per share. Transaction cost is $1,000. How much will the company capitalise if the investment is classified at fair value through OCI? Choose one of the following answers. 401,000 None of the above 399,000 400,000Check my answer. Seth, Pete, Cara, and Jen form Kingfisher Corporation with the following consideration consideration transferred From Seth Inventory Basis of transferor $30,000 FMV $96,000 30 shares From Cara Basis of transferor $15,000 FMV $15,000 30 shares From Pete Basis of transfer $45,000 FMV $99,000 Depr of equip $30,000 30 shares *Seth receives $6,000 in cash in addition to the 30 shares. Seth's recognized gain or loss FMV-basis= 96,000-30,000=66,000 cash received = $6,000 lessor of the two =$6,000 Seth's recognized gain Seth’s basis in the Kingfisher Corporation stock. Basis of inventory given+ recognized gain = 30,000+6,000=36,000 basis of stock received or is it $30,000+6,000-6,000 $30,000 basis of stock(2) Example 3 (Equity: Business Ownership): Hanna, Ursula, Thomas and Günther engage in a partnership named "Chick Enterprise. // Chick generates a net income of 75.000 $. 1) Ursula, Thomas and Günther get salary allowances for thei extra professional service for At clients, as follows: 12.000$ for Ursula; 9.000 $ for Thomas and 3.000 for Günther respectively. 11) Average capital balances during the year are as follows: Hanna Ursula Thomas Gunther 42.000 $ 4.200 $ 12.600 $ 25.200 $ Partners agreed for a 7.25 interest allowance for each partner at the end of the year. 84.000 $ [II) After salary & interest allowances, the remainder will be allocated from a fixed ratio of [5:2:4:1] for [Hanna: Ursula: Thomas: Günther Find each partner's capital (equity) and do the closing entry Example 4 (Equity: Business Ownership): Royal Inc. posesses a capital structure as follows: Luis 20 Hector 10 Sanchez 10 (in.000 $) 2) On March 1, Luis decides to sell 10 $ of his share to Martin. 3) On May 1,…
