Business, 03.03.2020 17:31 kaylaaguilar6538

Sandra contributes appreciated property (i. e., adjusted basis of $65,000 and a fair market value of $100,000) to her business entity in a transaction that qualifies for nonrecognition of gain. Sandra's ownership interest is 60 percent. The business entity later sells the appreciated property for $110,000. The property is not depreciable. Which of the following statements is correct?
a. If the entity is an S corporation, the S corporation's gross income is increased by $10,000 in the year of the sale of the property by the S corporation and Sandra's gross income is increased by $6,000 ($10,000 × 60%).

b. If the entity is a C corporation, the corporation's gross income is increased by $10,000 in the year of the sale of the property by the corporation.

c. If the entity is a partnership, Sandra's gross income is increased by $41,000 [($35,000 × 100%) + ($10,000 × 60%)] in the year of the sale of the property by the partnership.

d. All of these choices are correct.

e. None of these choices are correct.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 10:00

Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i.e., to have ebit = zero?

Answers: 1

Answer

Business, 22.06.2019 12:40

Kumar consulting operates several stock investment portfolios that are used by firms for investment of pension plan assets. last year, one portfolio had a realized return of 12.6 percent and a beta coefficient of 1.15. the average t-bond rate was 7 percent and the realized rate of return on the s& p 500 was 12 percent. what was the portfolio's alpha?

Answers: 1

Answer

Business, 22.06.2019 17:10

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)

Answers: 3

Answer

Business, 22.06.2019 19:30

Which of the following businesses is most likely to disrupt an existing industry? a. closer connex developed an earphone that receives emails and text messages and converts them to voice messages. the first models had poor reception, but they rapidly improved over time. b. mega technologies reconfigured the components used in its touchscreen tablets to create a new type of wearable device for use in restaurants and other service industries. c. particle inc. developed a teleportation technology that can transport physical materials instantaneously across great distances. d. altrea added advanced camera technology to its premium line of smartphones so that they would take the highest-quality photos of all phones on the market.

Answers: 1

Answer

You know the right answer?

Sandra contributes appreciated property (i. e., adjusted basis of $65,000 and a fair market value of...

Questions