Acme Corporation is liquidated with Joe, sole shareholder, receiving property having an adjusted basis of $70,000 and an FMV of $100,000. Joe's basis in the Acme stock surrendered is $60,000. Describe the tax consequences to Joe and Acme as a result of the liquidation.
Please explain step by step so I can understand the concepts, not just an answer.
Answers
When Acme Corporation is liquidated, there are tax consequences for both Joe, the sole shareholder, and Acme Corporation. Let's go through the step-by-step process to understand these consequences:
Property Distribution: As part of the liquidation, Joe receives property with a fair market value (FMV) of $100,000 and an adjusted basis of $70,000. The FMV represents the current value of the property, while the adjusted basis is the original cost adjusted for any depreciation or improvements.
Gain or Loss Recognition: Joe will recognize a gain or loss based on the difference between the FMV of the property received ($100,000) and his basis in the Acme stock ($60,000). In this case, Joe will have a recognized gain of $40,000 ($100,000 - $60,000).
Taxable Gain: The recognized gain of $40,000 will be subject to taxation. Joe will include this gain in his personal income tax return, and the tax will be calculated based on his individual tax rate.
Acme Corporation: As a result of the liquidation, Acme Corporation ceases to exist. The corporation may recognize any gains or losses on the distribution of its assets. If there are any remaining assets after satisfying its liabilities, the corporation may have tax consequences such as capital gains or ordinary income.
It's important to note that the specific tax consequences can vary based on the jurisdiction and applicable tax laws. Consulting with a tax professional is recommended to ensure accurate understanding and compliance with tax regulations.
Learn more about shareholder here
https://brainly.com/question/28452798
#SPJ11
Related Questions
The jury's final decision is referred to as which of the following?
Answers
Answer:
Verdict
Explanation:
Answer:
verdict- the jury's final decision
Developing economies are countries that have achieved substantial industrialization, modernization, and rapid economic growth since the 1980s. True or False?
Answers
The following statement, "Developing economies are countries that have achieved substantial industrialization, modernization, and rapid economic growth since the 1980s." is False.
The process of economic development and industrialization has been a major driver of globalization. Developing economies have been able to take advantage of opportunities in the global marketplace and have been able to grow rapidly as a result.
Industrialization has played a key role in this process, as it has allowed developing economies to produce more sophisticated and higher-value products. The globalization of supply chains and the rise of global value chains have also been major drivers of economic development and industrialization.
To know more about economies, click here.
https://brainly.com/question/19496739
#SPJ4
9. when buying a product online,
a. only use debit cards for increased protection.
b. call the seller to see if they will give you a cash discount.
c. use a credit card or charge card for increased protection.
d. send the seller a check because someone could steal your credit card number,
Answers
The recommended option when buying a product online is to use a credit card or charge card for increased protection. So, the correct answer is (c). Credit cards and charge cards offer more security features and fraud protection, which can help keep your financial information safe during online transactions.
When buying a product online, it is important to use a:When buying a product online, it is important to use a credit card or charge card for increased protection. This is because these payment methods offer fraud protection and dispute resolution options in case of any issues with the transaction.
It is not recommended to use a debit card as it may not offer the same level of protection. It is also not advisable to send the seller a check as there is a risk of it being lost or stolen in transit. It is not common for sellers to offer cash discounts, and if they do, it is important to verify their legitimacy before making any payments.
To know more about Credit cards
visit:
https://brainly.com/question/28111074
#SPJ11
Mr. Chan is a financial adviser with First National Bank Ltd. Tom had $500,000 to invest. Tom hired Mr. Chan to advise on some appropriate investments. Mr. Chan advised Tom to put $250,000 into Vic Properties Ltd (VPL) and $250,000 into Oil Explorers Ltd (OEL). Tom paid Mr. Chan $2,500 for his advice. Tom invested $250,000 in VPL immediately. However, he only invested in OEL after making some enquires from an oil expert.
If Mr Chan had made the proper enquires he would have found that:
Because of the downturn in the property market VPL is expecting to make a large loss. Y’s $250,000 investment is now worth only $100,000.
OEL is being sued for $100 million. It has since gone into liquidation (bankruptcy) and Y has lost its $250,000.
Answers
Due to Mr. Chan's inadequate research and advice, Tom suffered significant losses in his investments. Tom invested $250,000 in Vic Properties Ltd (VPL), which experienced a downturn in the property market and resulted in a loss. His investment in VPL is now worth only $100,000. Additionally, Tom invested $250,000 in Oil Explorers Ltd (OEL), which was sued for $100 million and subsequently went into liquidation, causing Tom to lose his entire investment of $250,000. Mr. Chan received a fee of $2,500 for his advice.
1. Tom had $500,000 to invest and sought the advice of Mr. Chan, a financial adviser from First National Bank Ltd.
2. Mr. Chan advised Tom to invest $250,000 each in Vic Properties Ltd (VPL) and Oil Explorers Ltd (OEL).
3. Tom paid Mr. Chan $2,500 for his advice.
4. Tom immediately invested $250,000 in VPL without conducting further research.
5. Unfortunately, VPL experienced a downturn in the property market, resulting in a significant loss. Tom's $250,000 investment in VPL is now worth only $100,000.
6. Tom did not immediately invest in OEL and instead made inquiries from an oil expert.
7. Tom discovered that OEL was being sued for $100 million, which led to the company going into liquidation (bankruptcy).
8. As a result, Tom lost his entire investment of $250,000 in OEL.
9. It is evident that Mr. Chan did not properly inquire about the investment opportunities and provided inadequate advice to Tom.
10. Consequently, Tom suffered substantial financial losses due to Mr. Chan's negligence and incomplete research.
For more such questions on investments, click on:
https://brainly.com/question/20360874
#SPJ8
A management perspective that emerged after World War II and applied mathematics, statistics, and other quantitative techniques to managerial problems is referred to as a(n) political science perspective. Behavioral sciences perspective. Organizational science perspective. Administrative science perspective
Answers
A management perspective that emerged after World War II and applied mathematics, statistics, and other quantitative techniques to managerial problems is referred to as an Administrative science perspective.
Administrative Science Perspective is a management perspective that emerged after World War II and applied mathematics, statistics, and other quantitative techniques to managerial problems. It aimed to create a new discipline that used scientific knowledge to solve administrative problems. Administrative Science Perspective represents the study of organizations and their administration from the perspective of applied behavioral sciences, management science, and operations research.The Administrative Science Perspective tries to answer the following questions:What do managers do?What is the nature of managerial work?What are the key skills that managers require?How can managers be trained to be more effective?What is the role of technology in improving managerial work?How can organizations be structured to improve their efficiency and effectiveness?What are the best methods for measuring and evaluating organizational performance?How can organizational change be managed effectively?What is the role of leadership in promoting organizational effectiveness?
Learn more about quantitative techniques here :-
https://brainly.com/question/31666677
#SPJ11
HELPPPPPPPP PALEASEEEE
when investors jump into an
investment because it's pop- ular to do
Answers
A market they are familiar with and comprehend. A strong leadership team. Diversification of investments Scalability. Financial projections that look promising. Consumer interest demonstrations A thorough marketing strategy. Transparency.
What do investors do during the market crash?Down markets provide an opportunity for investors to investigate an area that beginner investor may overlook: bond investing. Government bonds are often regarded as the safest investment, despite their unappealing appearance and typically low profits when compared to stocks and even other bonds.
Investing is a good way to put your money to work and perhaps increase your wealth. Smart investing can help your money outperform inflation and grow in value. The strength of compounding and the risk-return tradeoff contribute to investing's higher growth potential.
Learn more about investors here:
https://brainly.com/question/24048147
#SPJ1
a description about agriculture
Answers
Answer:
The art and science of cultivating the land, growing crops, and raising livestock is known as agriculture. It entails the processing of plant and animal products for human consumption as well as their delivery to markets. These goods, as well as the agricultural practices employed, may differ from one region to the next.
Explanation:
Hope this helps!
Please mark me as Brainlineast.
Matthew earned $1,000 this pay period. He will pay $94.12 in federal taxes. He does not have to pay state income tax. Social security tax is 6.2%, which is $62. Medicare is 1.45%, which is $14.50. Calculate Matthew's net pay with all mandatory taxes included.
Answers
Social security tax: 6.2% of $1,000 = $62
Medicare tax: 1.45% of $1,000 = $14.50
Next, let's calculate the total taxes:
Total taxes = Federal taxes + Social security tax + Medicare tax
Total taxes = $94.12 + $62 + $14.50
Total taxes = $170.62
Finally, let's calculate the net pay:
Net pay = Gross pay - Total taxes
Net pay = $1,000 - $170.62
Net pay = $829.38
Therefore, Matthew's net pay, after deducting all mandatory taxes, is $829.38.
Answer: 829.38
Explanation:
CEOs who lack technical skills may jeopardize an entire organization.
A. True
B. False
Answers
The statement "CEOs who lack technical skills may jeopardize an entire organization" can be considered as true.
Although technical skills aren't the only skills a CEO needs, they are an integral part of understanding and managing a modern organization effectively.
In the digital age, CEOs need a certain level of technical proficiency to make informed decisions about technological investments, cybersecurity, and digital strategy. Moreover, technical skills can help CEOs understand their product or service more deeply, connect with their technical team, and predict future industry trends. However, CEOs don't need to be technical experts. Their role is more about strategic oversight and they can hire technical experts for in-depth understanding. But a complete lack of technical knowledge can put the organization at risk if the CEO fails to make informed decisions in an increasingly digital business environment.
Learn more about technical skills here:
https://brainly.com/question/10976877
#SPJ11
Grant started a business this year. He earned $200,000 in revenues and had $150,000 in expenses. His other alternative would have been to go back to his old job, where he earned $70,000. What are Grant's "true" profits from his business
Answers
Answer:
Profit from the business = $50000.
Explanation:
Total revenue from the business = $200000
The total cost that occurred in business = $150000
Now we have to calculate the true profit from the business. So, it can be calculated by subtracting the total cost from the total revenue.
Below is the formula to find the profit.
Profit = total revenue – total cost
Now insert the given values in the formula.
Profit from the business = $200000 - $150000
Profit from the business = $50000
The amount of Grant's "true" profits from his business is $50000. Profits are termed as the total revenues that the firm earns on selling the produced goods and services.
Given information are:
Total revenue from the business = $200000
The total cost that occurred in business = $150000
Computation of profit:
Profit = Total Revenue- Total Cost
Profit = $200000- $150000
Profit = $50000
Therefore, the amount of profit the company earned is $50000.
To know more about the profits, refer to the link below:
https://brainly.com/question/4066079
distinguish between different types of fraud. question 4 options: negligent misrepresentation innocent misrpresentation fraud in the execution concealment fraud in the inducement nondisclosure 1. the victim is tricked into believing that the content of a contract is different than what it actually is. 2. the victim is told an untrue statement that he relies on in deciding to enter the contract. 3. a party takes action to hide the truth. 4. a party withholds information that must legally be disclosed. 5. a party is careless and makes a statement that they should have known was not true. 6. a party makes a statement in good faith but the information later turns out to be false.
Answers
1, Fraud in the execution 2, Fraud in the inducement 3, Concealment 4, Nondisclosure 5, Negligent misrepresentation 6, Innocent misrepresentation.
Fraud in the execution: This occurs when the victim is deceived or tricked into signing a contract without knowing its actual content or nature. For example, someone might be presented with a document to sign, believing it to be something else entirely, and later discovers that the contract's terms are different from what they were led to believe.
Fraud in the inducement: In this type of fraud, the victim is provided with false information or statements by the other party that influence their decision to enter into a contract. The victim relies on the false information, unaware of its true nature, and is misled into agreeing to the contract.
Concealment: Concealment involves a party actively hiding or suppressing important information that should be disclosed to the other party. By intentionally concealing the truth, the party seeks to gain an advantage or prevent the other party from making an informed decision.
Nondisclosure: Nondisclosure refers to a party's failure to disclose information that is required by law or that should be reasonably known to be significant for the other party's decision-making process. It involves the deliberate omission of material facts that could impact the contractual agreement.
Negligent misrepresentation: Negligent misrepresentation occurs when a party makes a false statement without exercising reasonable care or verifying the accuracy of the statement. While there is no intent to deceive, the party is considered negligent in making a statement they should have known to be false.
Innocent misrepresentation: Innocent misrepresentation refers to a party making a statement in good faith, genuinely believing it to be true at the time. However, the information provided later turns out to be false, despite the absence of any intent to deceive or mislead.
These different types of fraud highlight various deceptive practices or failures to disclose information, each with its own implications and legal consequences.
To know more about Fraud:
https://brainly.com/question/33138375
#SPJ4
According to etzioni’s three types of formal organizations, which organization type has a shared affinity when looking at the feeling of connectedness?.
Answers
According to etzioni’s three types of formal organizations , Normative organizations has a shared affinity when looking at the feeling of connectedness.
the required detils about etzioni’s three types of formal organizations is mentioned in below paragraph.
According to sociologist Amitai Etzioni (1975), formal organizations can be divided into three types. Common interests serve as the foundation for normative groups, also known as voluntary organizations. They gain intangible advantages. Normative organizations include the Audubon Society and a ski club, for illustration.
We have to be forced or pressured into joining coercive organizations. These might include a jail or a treatment facility. According to symbolic interactionist Erving Goffman, whole institutions are the most coercive organizations (1961). A total institution is one where military personnel or prisoners of war reside under strict control and undergo complete resocialization.
The third category consists of utilitarian groups, which, as their name implies, are joined for the purpose of receiving a particular material benefit.
to learn about etzioni’s organizations from the given link
https://brainly.com/question/3065055
#SPJ9
wo of the major challenges business users face when using big data are finding the information they need to make decisions and knowing that the data they have is valid.
(TRUE OR FALSE)
Answers
Finding the data they require to make choices and being certain that the data they have is accurate and Reliable are two of the biggest issues faced by corporate consumers of big data.
What presents the biggest difficulty for big data?
Storage. Given the massive amount of data generated every day, storing it in legacy systems is the largest challenge, especially when the data is in diverse formats. Unstructured data storage is not possible with conventional databases.
What are the major challenges faced by big data?One of the main issues with massive data is how to properly store these enormous volumes of data. In databases and data centers used by businesses, knowledge is stored in ever-increasing numbers. As massive data sets grow, it gets harder to handle them.
To know more about Business challenge visit:
https://brainly.com/question/28336004
#SPJ1
There are many different workplaces in the Agriculture, Food, and Natural Resources career cluster. Select the
workplaces that sound most interesting or enjoyable to you.
O a farm
O a forest
an underground mine
O an office
O a laboratory
O a veterinary clinic
a garden center
Answers
Which is a common way to send money from your bank to a bank in a different country?(1 point)
A. deposit
B. withdrawal
C. service fee
D. wire transfer
Answers
Answer:
I would say the answer is D. Wire Transfer
books to grow, a corporation owned and managed by volunteers, supplies books and educational materials to impoverished children in latin america. its focus is not on earning a profit but on serving the community. books to grow is an example of a(n)
Answers
As Books To Grow focuses on not earning a profit but on serving the community it is an example of corporate social responsibility.
This volunteer-run organization supplies books and educational materials to children in Latin America who are living in poverty.
Rather than seeking to earn a profit, the mission of Books To Grow is to provide resources to those in need and support the local community.
By donating books, money, and time, Books To Grow is making a positive difference in the lives of those living in Latin America.
Rather than earning a profit, Books to Grow is dedicated to serving the community by helping to provide access to quality education. Books to Grow is an example of a non-profit organization, meaning it does not generate a profit for its owners or shareholders, but instead exists to serve its community.
To learn more about books, click here,
https://brainly.com/question/28339193
#SPJ4
Handshakes should be:
O firm
o loose
O repeated
o accompanied by eye contact
Answers
Answer:
firm
Explanation:
NEED HELP ASAP
(Regarding the image attached)
1.) what is the issue discussed in the visual media item
2.) what is the creators viewpoint on the issue? What details in the resource support the creators claim? Provide evidence from the item to support your response.
3.) does this viewpoint reflect a commitment to free trade or to protectionism? Explain your answer and include evidence from the item to support your response.
4.) do you agree with the viewpoint of the item? Why or why not?
Answers
1.) The creator wants to show that free trade agreements involve harm to potential users to benefit the traders. 2.) Creator wants to show free traders as super fat (rich) cooks harming younger generations for profit.
What is free trade?Free trade can compel regional industries to up their game and rely less on government support. They have the power to attract new investments, expand markets, and boost GDP. FTAs can expose a nation to issues with local employment, the degradation of natural resources, and the loss of traditional livelihoods.
The first cost has to do with potential industry adjustment costs. The second is the potential for higher transaction costs as more varieties are available.
Government policies that impede international trade in order to support domestic industries are referred to as protectionism. However, they can also be implemented due to safety or quality concerns. Protectionist policies are typically implemented to increase economic activity within a domestic economy.
By enforcing tariffs or other trade restrictions, a protectionist trade policy enables the government of a nation to support domestic producers and thereby increase domestic production of goods and services.
Learn more about trade on:
brainly.com/question/10608502
#SPJ1
which statement below is true? which statement below is true? tarp injected capital into financial institutions in the form of common stock. letters of credit is an example of an on-balance sheet activity. growth of commercial paper market has been contributing to an increase in the volume of business loans. now accounts are not structured to be traded in the secondary markets.
Answers
The statement "letters of credit is an example of an on-balance sheet activity" is true.
An on-balance sheet activity refers to an activity that is recorded on a company's balance sheet, which is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time. Letters of credit, which are financial instruments that guarantee payment to a seller by a buyer, are typically recorded as a liability on a company's balance sheet.
Regarding the other statements, the statement "tarp injected capital into financial institutions in the form of common stock" is also true. TARP (Troubled Asset Relief Program) was a program launched by the US government in 2008 to provide capital to financial institutions during the financial crisis. This capital was injected in the form of common stock, which gave the government ownership in these institutions.
The statement "growth of commercial paper market has been contributing to an increase in the volume of business loans" is false. While the commercial paper market is an important source of short-term funding for companies, it is not directly related to the volume of business loans. Business loans are typically provided by banks and other financial institutions.
The statement "now accounts are not structured to be traded in the secondary markets" is also false. NOW (Negotiable Order of Withdrawal) accounts are a type of checking account that pays interest on the balance. These accounts are structured to be traded in the secondary markets, which means that they can be bought and sold by investors.
To know more about TARP refer to
https://brainly.com/question/16274681
#SPJ11
how do i get an egg out of my fridge????? HELP NEED TO KNOW ASAP
Answers
Answer:
open fridge!!!
Explanation:
STEP 1: open fridge
STEP 2: find the egg then grab with hand!!!!!!!!
(Its really hard!!)
You plan to operate a basketball camp during the summer at Duke University. The total number of participants is 200. Camp participants will stay three nights in the university dormitories, and each room will house two camp participants. Duke charges you $40 per room each night. Liability insurance to run the camp will cost $3,000. Meals for the three day camp will cost $6,000. Duke will not charge you for the use of the basketball facility. Nike will provide sporting goods to be used by, and given to, participants. You and your partner each want to make $8,000 profit from running the camp. How much will you have to charge each participant to meet your goal?
Answers
Answer:
$245 per participant
Explanation:
total number of participants = 200
total costs for 200 participants:
$40 per night x 3 nights x 200 = $24,000 for rooms$3,000 for insurance$6,000 for mealstotal costs = $33,000
if you want to earn $16,000 in profits ($8,000 each),
price per participant = ($33,000 + $16,000) / 200 = $49,000 / 200 = $245
Okay is it just me or is anyone else getting so many exams and redos right now
Answers
Answer:
ufff
Explanation:
exam s are over Best Of Luck ! ❤️❤️
Answer:
i am
Explanation: hey it me mat, i know its been a while and you problably forgot about me by now but. im sorry and id like to talk.
a
3 Discuss a method that a business owner may use to reduce
the level of risk in the running of their business.
Answers
Answer:
Know the law. ...
Document everything important. ...
Hire significant employees. ...
Build your reputation. ...
Protect your data.
here are some ways
Select all that apply.
Common skills assessments administered during the employment interview process include:
none of the above
science
keyboarding
math
Answers
Answer:
Keyboarding and Math :)
Explanation:
Susan is a new management trainee at Barney's Bats, Inc. She has just graduated with her bachelor's degree in management and is anxious to use her education. She has been at work several days and has some questions about how the organization is managed and how the principles of organization structure are used in the company. She believes there is too much specialization and that the span of control in the company is not optimal. Susan is looking for a long-term career with this company. Where can she look to view possible career paths with this company?
Answers
Answer: The organization chart
Explanation:
Based on the scenario that have been analysed in the question, Susan can view possible career paths with this company from the organization chart.
The organizational chart is a diagram that shows the internal structure of an organization by showing the roles carried out by the employees and the relationships that exists between them.
Consumer wealth is defined as the total value of ______. Multiple choice question. assets minus the total value of liabilities all investments plus the money in the bank all investments plus the money in the bank minus debt total assets
Answers
Answer:
Assets minus the total value of liabilities
Consumer wealth is defined as the total value of assets minus the total value of liabilities. Thus, the statement "assets minus the total value of liabilities" is the correct statement.
What is the wealth effect?According to the wealth effect, a behavioral economic hypothesis, people spend more money as the value of their possessions increases. Consumers are supposed to feel more financially secure and wealthy as the value of their houses or investment portfolios rises. Even if their income and fixed costs remain the same as before, they are made to feel wealthier.
The wealth effect captures the psychological impact of growing asset prices, such as those that take place during a bull market, on consumer purchasing patterns. The idea focuses on how significant rises in the value of investment portfolios boost consumers' emotions of security, sometimes known as their level of confidence. Increased confidence results in more spending and lower saving rates.
Learn more about the wealth effect, here:
https://brainly.com/question/27328727
#SPJ5
the million dollar quartet consisted of elvis presley, johnny cash, jerry lee lewis and carl perkins. which one did not perform on the recordings made of the session?
Answers
The Million Dollar Quartet consisted of Elvis Presley, Johnny Cash, Jerry Lee Lewis, and Carl Perkins. Carl Perkins did not perform on the recordings made of the session.
Million Dollar Quartet is a recording session that took place in December 1956 at the Sun Record Studios in Memphis, Tennessee. Elvis Presley, Carl Perkins, Jerry Lee Lewis, and Johnny Cash were among the musicians who took part in the session.
The session was a jam session, and the musicians began to play and sing some of their favorite songs. As the session progressed, the four musicians began to play and sing together, creating a unique sound that has since become legendary.
The Million Dollar Quartet session was significant in that it brought together four of the most influential musicians of the time. The session also provided a unique glimpse into the creative process of these musicians and their ability to work together.
The session was eventually released as a bootleg recording in the 1970s and was later released as an official album in 1981. The session has since become one of the most iconic moments in rock and roll history.
To learn more about million dollar quartet, refer: brainly.com/question/30199573
#SPJ11
4. For what purposes might a worker need to fill out a Form 4070A?
Answers
Answer:
Employees use Form 4070A to keep track of the tips they receive from customers and report the total to their employer each month. Workers should also record the total amount of tips they paid to other employees and the names of employees to whom the tips were paid.
Explain in detail two engagments. ASAP
Answers
Answer:
easy a
Explanation:
easy a
Transactions that don’t increase or decrease cash, but that result in significant investing and financing activities, are reported either directly after the cash flow statement or in a separate note to the financial statements as noncash activities.
a. True
b. False
Answers
Transactions that don’t increase or decrease cash, but that result in significant investing and financing activities, are reported either directly after the cash flow statement or in a separate note to the financial statements as noncash activities.
The above statement is True
What do you mean by transactions?
An agreement or communication between a buyer and a seller to trade products, services, or assets in exchange for money is a financial transaction. Any transaction involves a shift in the financial situation of two or more entities, whether they be people or businesses.In a firm, there are primarily four different sorts of financial transactions. Sales, purchases, receipts, and payments are the four categories of financial transactions that have an effect on the firm.To know more about Transactions here
https://brainly.com/question/1016861
#SPJ1