Individuals Bert and Tariq form Shark Corporation. Bert transfers equipment with a $290,000 adjusted basis and a $335,000 FMV for 50% of the stock worth $310,000 and a note of Shark Corporation valued at $25,000. Tariq transfers cash of $335,000 in exchange for 50% of the stock of Shark Corporation worth $310,000 and a $25,000 note. Bert's recognized gain is
A) $0.
B) $20,000.
C) $25,000.
D) $45,000.
C) $25,000.
Bert's recognized gain is the smaller of his realized gain of $45,000 [$335,000 - $290,000] or $25,000 of boot received [note of the Shark Corporation].
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A company has 800 shares of $50 par value preferred stock outstanding, and the call price of its preferred stock is $62 per share. It also has 18,000 shares of common stock outstanding, and the total value of its stockholders' equity is $656,200. The company's book value per common share equals:
A. $34.23. B. $36.46. C. $34.90. D. $32.27. E. $33.70.
Which of the following is NOT considered to be an equitable remedy?
A) Specific performance B) Injunction C) Reformation D) Money damages
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manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. If the company bases its predetermined overhead rate on the estimated amount of the allocation base for the upcoming year, then the predetermined overhead rate is closest to: A. $1.32 per machine-hour B. $1.54 per machine-hour C. $0.99 per machine-hour D. $1.49 per machine-hour
The issuing bank will honor the draft as long as the documents appear to be in good order on their face and correspond to the terms of the letter of credit, regardless of the conditions of the goods received
Indicate whether the statement is true or false