Business, 08.03.2021 19:40 Alphonse8472

Jed acquired 25% of the stock of Alpha (basis of $100,000) 12 years ago, and the other 75% was purchased by Zia (basis of $400,000) three years ago. Alpha enters into a tax-free consolidation with Beta, in which Jed will receive an 8% interest in the new AlphaBeta (value $90,000) plus $36,000 cash and Zia will receive a 28% interest (value $315,000) plus land worth $63,000. Alpha's basis in the land is $35,000. Before the reorganization or distributions to its shareholders, Alpha's value is $504,000 and Beta's value is $720,000. Required:
a. What is Jedâs and Ziaâs recognized gain or loss on the reorganization? What is each shareholderâs basis in his or her AlphaBeta stock?
b. What is Alphaâs and Betaâs recognized gain or loss on the reorganization?
c. Diagram the consolidation of Alpha and Beta Corporation.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 07:30

An instance where sellers should work to keep relationships with customers is when they instance where selllars should work to keep relationships with customers is when they feel that the product

Answers: 1

Answer

Business, 22.06.2019 11:50

What is marketing’s contribution to the new product development team? a. technical expertise needed to translate designs into an actual product/service. b. deep customer insight that leads to product ideas. c. ability to assess financial viability d. feedback on design as well as how customers will actually use the product e. technical expertise needed to translate concepts into product/service designs.

Answers: 2

Answer

Business, 22.06.2019 20:10

Peppy knows a lot about marketing, but not much about the legal or financial aspects of starting a new business. he wants to consult with a lawyer and accountant, but his budget is tight with all of the expenses involved in getting peppy's pizzazzeria up and running. peppy should: trust his basic instincts and try to put it together without the advice of lawyers and accountants. delay talking with a lawyer and accountant until the business has established a positive cash flow for at least one year. immediately hire full-time lawyers and accountants for his staff. consult with a lawyer and accountant even though the budget is tight.

Answers: 1

Answer

Business, 22.06.2019 21:10

Krier industries has just completed its sales forecasts and its marketing department estimates that the company will sell 43,800 units during the upcoming year. in the past, management has maintained inventories of finished goods at approximately 3 months' sales. however, the estimated inventory at the start of the year of the budget period is only 7,300 units. sales occur evenly throughout the year. what is the estimated production level (units) for the first month of the upcoming budget year?

Answers: 3

Answer

You know the right answer?

Jed acquired 25% of the stock of Alpha (basis of $100,000) 12 years ago, and the other 75% was purch...

Questions