Acme Corporation acquires Fisher Corporation's assets in a Type A reorganization for $800,000 of Acme's nonvoting preferred stock and $200,000 (face amount and FMV) of securities. The assets have an adjusted basis of $600,000 and an FMV of $1,500,000. In addition, Acme Corporation assumes $500,000 of Fisher's liabilities. At the time of the transfer, Acme's E&P is $400,000. Fisher distributes the
stock and securities to its sole shareholder Barbara for all of her Fisher stock. After the reorganization, Barbara owns 25% of Acme's stock. Barbara has an adjusted basis of $400,000 in her Fisher stock. Barbara must recognize a gain of
A) $0.
B) $200,000 dividend income.
C) $200,000 capital gain.
D) $650,000 capital gain.
C) $200,000 capital gain.
The entire amount of the securities received is treated as boot since no securities were surrendered by Barbara. The gain is capital gain since Barbara would own a minority position in Acme before and after the deemed stock redemption that would occur when the securities were received.
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A type of advantage that a global company possesses by virtue of the fact that it has experience in more than one country is referred to as:
A) Leverage. B) Transferability. C) Flexibility. D) Capability. E) Accountability.
The Widner Company manufactures two products: Stainless Serving Spoons and Stainless Serving Forks. The costs and revenues are as follows: Spoons ForksSales price$150 $88 Variable cost per unit 80 42 Total demand for Spoons is 14,000 units and for Forks is 9,000 units. Machine time is a scarce resource. During the year, 54,000 machine hours are available. Spoons require 5 machine hours per unit, while Forks require 3 machine hours per unit.How many units of Spoons and Forks should Widner produce? SpoonsForksA.14,0000B.8,3074,154C.10,8000D.5,4009,000
A. Option A B. Option B C. Option C D. Option D
In New England, foot-long sandwiches are called "grinders," while in many other parts of the country they are called "subs." This is an example of the impact of
A. country culture. B. regional culture. C. regulatory factors. D. social trends. E. generational factors.
Match the disciplinary perspective with the insights that they have provided into entrepreneurship or the methods that they have used
Research has focused on how to reconcile the active role of the entrepreneur with the ‘invisible hand’ of the market) and a more policy-oriented and outward-looking strand that examines the relationship between entrepreneurial activity and achieving greater economic growth. Choose... i) Business history ii) Psychology and behavioural studies iii) Economics iv) Sociology, human geography and anthropology b) The focus is on individual human beings, with a focus on what makes people entrepreneurial and the actions associated with being entrepreneurial. Choose... i) Business history ii) Psychology and behavioural studies iii) Economics iv) Sociology, human geography and anthropology c) Research at the individual-level with a focus on how entrepreneurship is shaped by larger social forces. Choose... i) Business history ii) Psychology and behavioural studies iii) Economics iv) Sociology, human geography and anthropology d) A focus on archive-based research (e.g. investigating early company documents, personal diaries, trade publications etc.). Choose... i) Business history ii) Psychology and behavioural studies iii) Economics iv) Sociology, human geography and anthropology