Fulfill the core accounting educational requirement

Assignment Help Cost Accounting

Reference no: EM13174240

Mary and Sarah are contemplating transferring property to start a new company, M&S Incorporated that will manufacture machines for the construction industry. Mary and Sarah are asking for advice and direction on Section 351 exchanges of property for new corporate stock. They would like you to assist them in understanding the realized gain, recognized gain, and investor basis in the stock with the exchange. They are contemplating transferring property-cash and equipment-to start M&S Incorporated. Mary and Sarah will be 100% owners of the new company.

The following information is available for the year:

• Mary and Sarah will transfer the following assets and liabilities to the newly formed M&S Incorporated. The transaction will provide 100% control of the corporation. No services will be exchanged.

	Mary	Sarah
Asset	(equipment) $20,000	(cash) $30,000
Adjusted basis	$20,000	$30,000
Fair market value	$25,000	$30,000
Consideration given	50 shares	50 shares
Stock value received	30,000	30,000
Received cash	5,000	0
Voting shares	50 shares	50 shares

• M&S Incorporated will manufacture 1,000 bulldozers during the year.

• The property that Mary will infuse into M&S Incorporated is one piece of equipment.

• Sarah will invest cash.

• All of the shares are voting shares.

Develop a thorough understanding of accounting standards and principles.

• Fulfill the core accounting educational requirement to sit for the CPA exam.

• Prepare to practice in public and private accounting position.

• Advance to a higher professional level.

Reference no: EM13174240

Questions Cloud

Calculate the number of liters occupied at stp : Calculate the number of liters occupied at STP: a. 1.7 mol H2(g); b. 1.8 x 10-2 mol N2(g); c. 2.5 x 10(2) mol O2(g)

Find the volume at stp : 969 ml of gas was collected at 64 degrees celcius and a pressure of 723 mm Hg. Find the volume at STP.

Calculate the percentage of gold in the jewelry : Consider a piece of gold jewelry that weighs 9.55 g and has a volume of 0.660 cm^3. The jewelry contains only gold and silver, which have densities of 19.3 {rm g}/{rm cm}^{3} and 10.5 {rm g}/{rm cm}^{3}, respectively.

Explain nitrogen and oxygen do not react appreciably : Nitrogen and oxygen do not react appreciably at room temperature, as illustrated by our atmosphere. But at high temperatures, the reaction below can proceed to a measurable extent.

Fulfill the core accounting educational requirement : Fulfill the core accounting educational requirement to sit for the CPA exam and prepare to practice in public and private accounting position.

Calculate the total mass of sodium chloride : The total volume of seawater is 1.5X10^21 L. Assume that seawater contains 3.1 percent sodium chloride by mass that its density 1s 1.03 g/mL. Calculate the total mass of sodium chloride.

Compute the freezing point depresson : a solution of cyclohexane and an unknown solute freezes at 3.3c and 1atm of pressure. calculate the freezing point depresson of the solution

How much iron (iii) oxide was used : Iron (III) oxide(s) is heated in excess carbon monoxide(g) to form iron(s) and carbon dioxide(g). If the percent yield of iron was 83.0% and the actual yield was 9.87 g, how much iron (iii) oxide was used?

Calculate the weight of helium in pounds to fill a ballon : Calculate the weight of helium in pounds to fill a ballon whose capacity is 1.0 X10^6 ft^3 at 1 atm pressure and 27 C.

User Account

All Pages