Jason sells stock with an adjusted basis of $66,000 to JJ Inc., his 60% owned corporation, for its fair market value of $60,000. JJ Inc. sells the stock three years later for $67,000. JJ Inc.'s recognized gain or loss on the sale will be
A. ($3,000).
B. $4,000.
C. $1,000.
D. $0.
Answer: C
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Premium on Bonds Payable is a balance sheet item for Ohio Products Company. How would it most likely be classified on the balance sheet?
a. An increase to a long-term liability b. Revenue c. Long-term asset d. Contra liability
If an analyst expects a firm to generate net income each period exactly equal to required earnings, then the value of the firm will be equal to the ______________________________ of common shareholders' equity
Fill in the blank(s) with correct word
The capital accounts of Harrison and Marti have balances of $180,000 and $130,000, respectively, on January 1, 2010, the beginning of the current fiscal year. On April 10, Harrison invested an additional $20,000. During the year, Harrison and Marti withdrew $96,000 and $78,000, respectively, and net income for the year was $248,000. The articles of partnership make no reference to the division of
net income. Based on this information, the statement of partners' equity for the 2010 for the partnership would show what amount in the capital account for Marti on December 31, 2010? A) $228,000 B) $176,000 C) $404,000 D) $52,000
Goods that are in transit and were shipped FOB destination should be included in the inventory records of the ________.
Fill in the blank(s) with the appropriate word(s).