XYZ corporation (E &P $1,000,000) distributes machinery, adjusted basis $20,000Fair Market Value of $150,000 to sole shareholder. The property is subject toLiability of $10,000 which shareholder assumes(A)How much dividend Johnson report150000-10000140000What is his basis in the machinery150000(B)FMVWhat is the effect on corporation's eamings and E & PIncrease by gainIncrease by liab13000010000-150000Decrease by FMV-10000

Here discuss about the details of dividend which are incurred in the total transaction and its…

XYZ corporation (E&P$1,000,000) distributes machinery, adjusted basis $20,000 Fair Market Value of $150,000 to sole shareholder. The property is subject to Liability of $10,000 which shareholder assumes

XYZ corporation (E&P$1,000,000) distributes machinery, adjusted basis $20,000 Fair Market Value of $150,000 to sole shareholder. The property is subject to Liability of $10,000 which shareholder assumes

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Gg.115.
Parlor Company acquires 75% of Saloon Company's common stock for P225,000 cash. At that date, the non-controlling interest in Saloon has a book value of P52,500 and a fair value of P72,000. Also on that date, Saloon reports identifiable assets with a book value of P400,000 and a fair value of P510,000 and it has liabilities with a book value and a fair value of P190,000. Goodwill or (Gain on bargain purchase) arising on consolidation if fair value of net identifiable assets is to be valued on the full (fair value) basis?
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