Reference no: EM13945774
Seth, Pete, Cara, and Jen form Kingfisher Corporation with the following consideration:
Consideration Transferred
|
|
Basis to Transferor
|
Fair Market Value
|
Number of Shares Issued
|
|
From Seth-Inventory
|
$30,000
|
$96,000
|
30*
|
|
From Pete-Equipment ($30,000 of depreciation taken by Pete in prior years)
|
45,000
|
99,000
|
30**
|
|
From Cara-Proprietary process
|
15,000
|
90,000
|
30
|
|
From Jen-Cash
|
30,000
|
30,000
|
10
|
Assume that the value of each share of Kingfisher stock is $3,000. As to these transactions, provide the following information:
a. Seth's recognized gain or loss. Identify the nature of any such gain or loss.
b. Seth's basis in the Kingfisher Corporation stock.
c. Kingfisher Corporation's basis in the inventory.
d. Pete's recognized gain or loss. Identify the nature of any such gain or loss.
e. Pete's basis in the Kingfisher Corporation stock.
f. Kingfisher Corporation's basis in the equipment.
g. Cara's recognized gain or loss.
h. Cara's basis in the Kingfisher Corporation stock.
i. Kingfisher Corporation's basis in the proprietary process.
j. Jen's recognized gain or loss.
k. Jen's basis in the Kingfisher stock.
|
Calculate profit and the value of ending inventory
: Calculate profit and the value of ending inventory for each year using full costing - explain why profit fluctuates from year to year even though the units sold and selling price remains the same.
|
|
Explain the concept of critical infrastructure
: Explain the concept of Critical Infrastructure and the evolution and implementation of the Critical Infrastructure Protection (CIP) programs. Define the linkage and differences of Critical Information Infrastructures and their respective protectio..
|
|
Determine the amount and nature of lowells gain or loss
: Several years ago, Lowell, who is single, acquired 1244 stock in Blue Corporation at a cost of $60,000. He sells the Blue stock for $5,000 in the current year. Determine the amount and nature of Lowell's gain or loss recognized this yea..
|
|
Most interesting part of dhs cyber security page and why
: Go to the following website and review it. Write a one page paper (double spaced) on what you think is the most interesting part of the DHS Cyber Security page and why
|
|
Identify the nature of any such gain or loss
: Identify nature of any such gain or loss. Pete's basis in the Kingfisher Corporation stock. Kingfisher Corporation's basis in the equipment.
|
|
Often researchers employ surveys to gather information
: Often researchers employ surveys to gather information. In this forum, you will be composing a brief, five question survey relevant to your topic. Begin by reviewing the required reading material.
|
|
Ncees code rule
: You are a supervisor for a complex design project, and are aware of the NCEES code rule according to which engineers may coordinate an entire project provided that each design component is signed or sealed by the engineer responsible for that desi..
|
|
Process required reversing entries via the general journal
: Process the required reversing entries via the general journal - Post the journal entries to the appropriate ledger accounts and prepare a bank reconciliation as at 31st July 2014.
|
|
What banking system do in total maximum new checking account
: If banks desire to retain excess reserves of 10% of total checking accounts and borrowers hold 10% of their new checking accounts (loans) for liquidity purposes and do not spend that 10%, what will be the maximum impact on the money supply in the ..
|