Carmen and Marc form Apple Corporation. Carmen transfers land that is Sec. 1231 property, with an adjusted basis of $18,000 and an FMV of $20,000 in exchange for one-half of the Apple Corporation stock. Marc transfers equipment that originally costs $28,000 on which he has taken $5,000 in depreciation deductions. The equipment has an FMV of $25,000 and he receives one-half of the stock and a
$5,000 short-term note. The transaction meets the requirements of Sec. 351. Which statement below is correct?
A) There is no recognized gain or loss.
B) Carmen recognizes a $2,000 Sec. 1231 gain and Marc recognizes $5,000 as ordinary income.
C) Carmen recognizes a $2,000 Sec. 1231 gain and Marc recognizes a $5,000 Sec. 1231 gain.
D) Carmen recognizes no gain and Marc recognizes $2,000 as ordinary income.
D) Carmen recognizes no gain and Marc recognizes $2,000 as ordinary income.
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If the Swiss demand for dollars is inelastic, then a depreciation of the dollar against the franc will lead to a greater quantity of francs being supplied to the foreign exchange market to obtain dollars.
a. True b. False
On January 1, 2016, Laura Corporation had 18,000 shares of common stock outstanding, and reacquired 2,000 shares on July 1. The company earned net income of $110,800 and paid a cash dividend on its preferred stock of $36,000. What was the basic earnings per share for the year?
A) $4.40 B) $5.54 C) $3.74 D) $4.68
A political lobbyist for General Motors fills an essential boundary-spanning role.
Answer the following statement true (T) or false (F)
Business process reengineering is a tool for
A. radically redesigning and streamlining how an activity (workflow) is performed, by pulling the pieces of strategy-critical activities out of different departments and unifying their performance in a single department or cross-functional work group. B. the rapid redesign of an organization's structure so as to quickly create organizational competencies and capabilities. C. instituting total quality management. D. expediting the redesign of existing products and shortening the design-to-market cycle. E. making the most effective use of Six Sigma techniques.