Solution-What amount of gain did Carr recognize from this

What amount of gain did Carr recognize from this transaction

Assignment Help Accounting Basics

Reference no: EM132661898

Problem - Adams, Beck, and Carr organized Flexo Corp. with authorized voting common stock of $100,000. Adams received 10% of the capital stock in payment for the organizational services that he rendered for the benefit of the newly formed corporation. Adams did not contribute property to Flexo and was under no obligation to be paid by Beck or Carr. Beck and Carr transferred property in exchange for stock as follows:

	Adjusted Basis	Fair Market Value	Percentage of Flexo Stock Acquired
Beck	$5,000	$20,000	20%
Carr	60,000	70,000	70%

Required - What amount of gain did Carr recognize from this transaction?

a. $40,000

b. $15,000

c. $10,000

d. $0

Reference no: EM132661898

Questions Cloud

Expected rates of return on the two investments : Which investment would you select based on the differences in expected rates of return on the two investments? Explain.

How much of the total support department costs should be : Assembly department, Using the step-down method, beginning with human resources, how much of the total support department costs should be allocated to assembly?

Reflect on advocacy efforts and the role of the nurse : As their names imply, the honeyguide bird and the honey badger both share an affinity for honey. Honeyguide birds specialize in finding beehives but struggle.

Maturity risk premium for the 2-year security : A 2-year Treasury security yields 9.25%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal places.

What amount of gain did Carr recognize from this transaction : Adams, Beck, and Carr organized Flexo Corp. with authorized voting common stock of $100,000. What amount of gain did Carr recognize from this transaction

Find yield on a 7-year treasury note : What is the yield on a 7-year Treasury note? Do not round intermediate calculations. Round your answer to two decimal places.

Reflect on potential opportunities that may exist for rns : Reflect on potential opportunities that may exist for RNs and APRNs to participate in the policy-making process. Post an explanation of at least two.

Enhance motivation and engagement without spending money : Is there anything we can do to enhance motivation and engagement without spending the money we traditionally have?"

What is the yield on a 4-year security : An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore

User Account

All Pages

What amount of gain did Carr recognize from this transaction

Reference no: EM132661898

Reference no: EM132661898

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT