Reference no: EM13866565
Five years ago, Rachel transferred property she had used in her sole proprietorship to Green Corporation for 100 shares of Green Corporation in a transaction that qualified under § 351. The assets had a tax basis to her of $200,000, and a fair market value of $350,000, on the date of the transfer. In the current year, Green Corporation (E&P of $1 million) redeems 30 shares from Rachel for $225,000 in a transaction that qualifies for sale or exchange treatment. With respect to the redemption, Rachel will have a
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Amounts equal to the salary and interest allowances
: Inter media, LLC, has three members: WYXT Partners, Lindsey Wilson, and Daily Sun Newspaper, LLC. On January 1, 2014, the three members had equity of $355,000, $90,000, and $215,000, respectively. Any remaining income is to be shared in the ratio of ..
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Approximate market value of the stock after the stock split
: A corporation has issued 17,000 shares $50 par value common stock. The board of directors declares a 4-for-1 stock split when the market value of the stock is $185. What should be the approximate market value of the stock after the stock split?
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What is the cash interest payment for the bonds
: On July 1, 2014 a corporation issued $500,000 of 10%, 10-year bonds for $461,000 to yield 12%. Interest is paid semiannually on June 30 and December 31, and the company uses the straight-line method to amortize premium or discount. What is the cash i..
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Compute the current ratio and acid-test ratio
: Use the following selected data from Business Solutions’ income statement for the three months ended March 31, 2016, and from its March 31, 2016, balance sheet to complete the requirements below: computer services revenue, $25,307; Compute the gross ..
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Transaction that qualifies for sale or exchange treatment
: Five years ago, Rachel transferred property she had used in her sole proprietorship to Green Corporation for 100 shares of Green Corporation in a transaction that qualified under § 351. In the current year, Green Corporation (E&P of $1 million) redee..
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Record the issuance of bonds and entries to be passed post
: Mellilo Corporation issued $5,600,000 of 20-year, 9.5 percent bonds on July 1, 2015, at 98. Interest is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June 30, 2035. Mellilo's fiscal year ends on December 31...
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Problem is an introduction to production costs
: The following problem is an introduction to production costs: River Queen Corporation began operations early in the current year, building luxury boats. During the year, the company started and completed 40 boats at a cost of $80,000 per unit.
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Compute the price of the bonds based on semiannual analysis
: You are called in as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 9 percent, which is paid semiannually. Compute the price of the bonds based on semiannual anal..
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What will be number of shares outstanding after stock split
: A corporation has issued 17,000 shares $50 par value common stock. No treasury stock is held by the company. The board of directors declares a 4-for-1 stock split when the market value of the stock is $185. What will be the number of shares outstandi..
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