Business, 27.06.2020 21:01 AeelynRamos
Sarah and Tony (mother and son) form Dove Corporation with the following investments: cash by Sarah of $65,000; land by Tony (basis of $25,000 and fair market value of $35,000). Dove Corporation issues 400 shares of stock, 200 each to Sarah and Tony. Thus, each receives stock in Dove worth $50,000.
Which of the following is true?
a. Tony's basis in the stock of Dove Corporation is $50,000.
b. As a result of the transfer, Tony recognizes a gain of $10,000.
c. Section 351 cannot apply since Sarah should have received 260 shares instead of only 200.
d. Section 351 may apply because stock need not be issued to Sarah and Tony in proportion to the value of the property transferred.
e. None of these choices are correct.
Answers: 3
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Business, 22.06.2019 12:50
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Anew 2-lane road is needed in a part of town that is growing. at some point the road will need 4 lanes to handle the anticipated traffic. if the city's optimistic estimate of growth is used, the expansion will be needed in 4 years and has a probability of happening of 40%. for the most likely and pessimistic estimates, the expansion will be needed in 8 and 15 years respectively. the probability of the pessimistic estimate happening is 20%. the expansion will cost $ 4.2 million and the interest rate is 8%. what is the expected pw the expansion will cost?
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John's pizzeria and equilibrium john is selling his pizza for $6 per slice in an area of high demand. however, customers are not buying his pizza. using what you learned about the principles of equilibrium, write three to four sentences about how john could solve his problem.
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Sarah and Tony (mother and son) form Dove Corporation with the following investments: cash by Sarah...
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