Risa exchanges an office building with a $600,000 adjusted basis for an apartment building with a $1,000,000 FMV and $200,000 of marketable securities. The other party indicates he had paid $175,000 for the securities a year earlier. What is Risa's basis for the securities?
A. $200,000
B. $0
C. $175,000
D. none of the above.
Answer: A
You might also like to view...
A leader who is assured and dominant in her manner is expressing ______.
A. agreeableness B. openness C. integrity D. self-confidence
Current assets are assets that (1) are in the form of cash, (2) will be realized in cash, or (3) conserve the use of cash within the operating cycle of a business or for one year, whichever is shorter
Indicate whether the statement is true or false
If the assets of Marco's Pet Store are $107,000 and the owners' equity is $75,000, which of the following is a correct statement?
A. The owners' investment equals $182,000. B. The current assets are worth $32,000. C. The new income for the period is $32,000. D. The long-term liabilities are $75,000. E. The liabilities are $32,000.
The balance sheet and income statement of a particular firm are shown above. What does the account receivable days ratio tell you about this company?
Balance Sheet Assets Liabilities Current Assets Current Liabilities Cash 50 Accounts payable 42 Accounts receivable 22 Notes payable/short-term debt 7 Inventories 17 Total current assets 89 Total current liabilities 49 Long-Term Assets Long-Term Liabilities Net property, plant, and equipment 121 Long-term debt 128 Total long-term assets 121 Total long-term liabilities 128 Total Liabilities 177 Stockholders' Equity 33 Total Liabilities and Total Assets 210 Stockholders' Equity 210 Income Statement Total sales 312 Cost of sales -210 Gross Profit 102 Selling, general, and administrative expenses -34 Research and development -10 Depreciation and amortization -5 Operating Income 53 Other income - Earnings before interest and taxes (EBIT) 53 Interest income (expense) -20 Pretax income 33 Taxes -8 Net Income 25 A) It takes on average about 4 weeks to collect payment from its customers. B) It takes on average about 6 weeks to collect payment from its customers. C) It takes on average about 7 weeks to collect payment from its customers. D) It takes on average about 11 weeks to collect payment from its customers.