Compute the realized and recognized gain or loss

Assignment Help Accounting Basics
Reference no: EM133053805

Question - Compute the realized and recognized gain or loss and the new basis in the following transactions, all of which took place pursuant to a plan of recapitalization.

a. A shareholder exchanged 100 shares of $5 par value preferred stock with a basis of $1,000 for 200 shares of $4 par value common stock worth $800.

b. A bond holder exchanged a bond with a basis of $800 and a par value of $1,000 and received 50 shares of common stock worth $1,050.

c. A shareholder exchanged stock with a basis of $2,000 for bonds worth $5,500 and a par value of $4,000.

d. A bondholder exchanged a bond with a basis of $900 and a par value of $1,000 for another bond with a value of $1,500 and a par value of $1,500.

Reference no: EM133053805

Questions Cloud

Create diagram of supply chain plan : You build a supply chain plan/diagram for a new business by analyzing factors that affect sourcing, logistics, metrics, suppliers, and risk.
Prepare the journal entries to be made in the accounts : Prepare the journal entries to be made in the accounts of the investment pool trust fund to record the following transactions for the first year of operations
Corporate entrepreneurship : Discuss whether the term "corporate entrepreneurship" is an oxymoron. Can corporations-especially large ones-be innovative?
Express scheme is under statistical control : How can Murarka find out if the process involved in the premium express scheme is under statistical control?
Compute the realized and recognized gain or loss : Compute the realized and recognized gain or loss and the new basis in the following transactions, all of which took place pursuant to a plan of recapitalization
Project management practice : What stakeholder identification and analysis methods do you find most useful in your project management practice?
Thinking about business research : How did the information in this unit change your thinking about business research? In what ways was this information familiar, and in what ways was it foreign?
What amount should be included in the consolidated statement : What amount should be included in the consolidated statement of financial position at December 31 2018 for the equipment cost and accumulated depreciation
What is harmonized system number : What is a harmonized system number? how is it used? Space what are the advantages of such a system?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd