Stock of cardinal corporation

Assignment Help Accounting Basics

Reference no: EM13122349

Kim owns 100% of the stock of Cardinal Corporation. In the current year Kim transfers an installment obligation, tax basis of $30,000 and fair market value of $200,000, for additional stock in Cardinal worth $200,000.

a. Kim recognizes no taxable gain on the transfer.

b. Kim has a taxable gain of $170,000.

c. Kim has a taxable gain of $180,000.

d. Kim has a basis of $200,000 in the additional stock she received in Cardinal Corporation.

e. None of the above.

Reference no: EM13122349

Questions Cloud

Determining the angle of a graphed curve : A ski-run follows the curve of y=0.01x^2 - 0.6x + 9 from x=0 meters to x=30 meters. What is the angle between the ski-run and the horizontal where x=10?

Illustrate the historical relationship among the subsequent : illustrate the historical relationship among the subsequent variables: value of the dollar, oil prices, interest rates and stock prices. Give one implication of each graph for strategic planning

How many mls of titrant will be required : In a titration of 25.80 mLs of 0.256 M HCOOH (formic acid, Ka = 1.8x10-4) with 0.286 M KOH, how many mLs of titrant will be required to reach the equivalence point?

Illustrate what marketing effect might be visualized : Imagine that the United States was composed of many separate countries with individual trade barriers. Illustrate what marketing effect might be visualized?

Stock of cardinal corporation : Kim owns 100% of the stock of Cardinal Corporation. In the current year Kim transfers an installment obligation, tax basis of $30,000 and fair market value of $200,000, for additional stock in Cardinal worth $200,000.

What is the probability that there is no matching pair : A drawer contains n=5 different and distinguishable pairs of socks (a total of 10 socks). If a person randomly selects 4 socks, what is the probability that there is no matching pair in the sample?

Probability that two have used phones to access internet : In a random sample of 10 cell phone users, what is the probability that exactly 2 have used their phones to access the Internet? More than 2?

Calculate the percentage of sulfate ion in the sample : A 1.5618-g sample containing sulfate ion was treated with barium chloride reagent, and 0.2321 g of barium sulfate was isolated. Calculate the percentage of sulfate ion in the sample.

Test firms assumption-account balances normally distributed : A random sample of 61 accounts were checked. The standard deviation was $286.20. At α= 0.01, test the firms' assumption. Assume the account balances are normally distributed.

User Account

All Pages