User Account

All Pages

Find which is the adjusted cost base of the preferred shares

Assignment Help Financial Accounting
Reference no: EM132701770

Problem 1: Under the provisions of ITA 85(1), Jason transferred a piece of land he held personally to a corporation in which he owned all of the shares. The adjusted cost base of the land was $120,000 and, at the time of the transfer, it had a fair market value of $390,000. The transfer took place at an elected value of $120,000. As consideration, Jason received a promissory note for $60,000, preferred shares with a fair market value of $210,000, and common shares with a fair market value of $120,000. Which one of the following is the adjusted cost base of the preferred shares (first) and the adjusted cost base of the common shares (second)?

Option 1: $210,000 and $120,000.

Option 2: Nil and $60,000.

Option 3: $38,181 and $21,819.

Option 4: $60,000 and Nil.

Reference no: EM132701770

Questions Cloud

Find what would rasta fx equity exposure be : Find what would Rasta's FX equity exposure be if the company would issue/raise an additional (new) USD 30 million in EUR-denominated debt?
What is the total annual inventory cost : What is the total annual inventory cost? Assume that the total annual inventory cost consists of two types of costs only-ordering cost and holding cost.
What is the cost per unit for the first product : The units produced for the first product are 11,000, with 10,000 shipped to customers. What is the cost per unit for the first product
What are the keys to effective teams : What are the keys to effective teams, and how can you apply this knowledge to give me an advantage?
Find which is the adjusted cost base of the preferred shares : Find Which is the adjusted cost base of the preferred shares (first) and the adjusted cost base of the common shares (second)?
Community intervention and intervention in the community : What is the difference between "community intervention" and "intervention in the community"?
Defining the specific characteristics : Identify a new system requirement and apply the QFD process (or something of an equivalent nature) in defining the specific characteristics that should be inclu
Determine the eoq and annual inventory cost : Determine the EOQ and annual inventory cost for each warehouse. Determine EOQ and annual inventory cost for single warehouse.
Find the compensation rate for default risk as an annual : Find the compensation rate for default risk as an annual effective rate. The annual effective interest rate that takes into account both default risk

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute all direct labour-manufacturing overhead variances

During the first year of operations, 1,000 units per month will be produced. During the second year, production is estimated to be 1,500 units per month. What selling price should Bramlett set for the new product according to the new pricing policy? ..

  Calculate the wacc for dillon labs

Dillon Labs has asked its financial manager to measure, Calculate the cost of common stock? (both retained earnings and new common? stock).

  Find cost of the inventory using weighted average cost flow

If Cooka Lamps uses a periodic inventory system, the cost of the inventory using the weighted average cost flow assumption at January 31, 2020 is

  Prepare income statement for years 2012 and 2013

Prepare income statement for years 2012 and 2013 using accrual basisaccounting and determine the receivables from customers that the company would show on its 2012 and 2013 balance sheets prepared using accrual basis accounting.

  What account should the client classify the apartment

In your opinion, as an auditor, what account should the client classify the apartment and housing / real estate complex be? Explain your answer.

  Find what the equivalent units of production for the period

What the equivalent units of production for the period for conversion costs were? During a period and had 49700 units in the ending work in process inventory

  Discuss the current operating performance concept of income

Discuss the current operating performance concept of income and the all-inclusive concept of income. Is comprehensive income consistent with either of the two? Discuss why or why not.

  Calculate the present value of each investment

Your client is considering the purchase of $100,000 in common stock, which pays no dividends and will appreciate in market value by 10 percent per year. At the same time, the client is considering an opportunity to invest $100,000 in a lease oblig..

  How much total interest will sosa pay on this payment plan

(Part Level Submission) Sosa Excavating Inc. is purchasing a bulldozer. The equipment has a price of $102,000. The manufacturer has offered a payment plan that would allow Sosa to make 15 equal annual payments of $14,185, with the first payment due o..

  What is cash flow from operating activities

Consider the following: Net income = $10,000, depreciation expense = $2,000, accounts receivable increased by $700, inventory decreased by $400, and accounts payable increased by $300.

  What would be the companys debt ratio

What would be the companys debt ratio if it purchased the equipment and what would be the debt ratio if the equipment were leased?

  Net income and earnings per share

Evaluate each of the following for every alternative Net income and Earnings per share.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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