b. Can John and Jane Smith utilize a 1031 tax exchange to buy a more expensive house using additional money from John's case? Property used primarily for personal use, like a primary residence or a second home or vacation home, does not qualify for like kind exchange treatment. (2) You cannot do a 1031 like-kind exchange on your personal residence. A 1031 exchange allows the deferral of capital gains taxes and recapture of depreciation.
The Maize stock would result in a long term capital gain property deduction of 200,000, the stock's FMV, and the recognition of the associated gain could be avoided. The Brown stock is considered ordinary income since if it were sold on the contribution date, a short-term capital gain would have been recognized (due to the holding period). Therefore, the deduction is limited to the FMV less the amount that would've been a STCG ($130,000), which is essentially the basis, $70,000) A cash donation would be deducted in full,
The taxable gain is computed by deducting the acquisition costs (adjusted for inflation) and transfer costs from the selling price. Long-term capital gains are currently taxed at 15%. Short-term capital gains or gains realized within twelve months are taxed at ordinary income tax rates. CORPORATE TAXATION INCOME TAX Local corporations can be fully owned by foreign individuals. A minimum of three incorporators are needed to set up a local company, and at least one incorporator should be a Guam resident.
The bank of Easipower [the defendant] gave a report of Easipowers financial position that they have enough resources for ordinary business proceedings, but stated that the report was given "without responsibility." Based on the report which was given by the respondents, Hedley added another orders on behalf of Easipower which later on were not covered by sufficient resources. It meant a loss of £17,000 for Hedley Byrne. Hedley sued the respondents for damages under the tort of negligence. Esso Petroleum Co Ltd v Marden [1976] 2 All ER 5 Mr Mardon entered a tenancy agreement with Esso Petroleum in respect of a new Petrol station.
Required 1.Provide a brief written description of the proper accounting treatment, including how the extra $10 paid per share is recorded. Target Inc. buying back their common stock, but they pay more $10 than the market value. Hence, their purchase cost is taken into account instead of market value. Also the extra share will not be recognized as profit or loss but instead capitalized as treasury shares. 2.
qualitative characteristics of accounting information. Recognition and measurement concepts in accounting, including assumptions and principles. elements of financial statements. : 1 5 of 5 Question 3. Question : (TCO 3) Mary Parker Co. invested $15,000 in ABC Corporation and received capital stock in exchange.
What does the $2.55 billion increase in Berkshire Hathaway’s market value represent? 2. Choice of valuation methods: What do you think PacifiCorp is worth on its own before its acquisition by Berkshire? Which valuation method should you use to value PacifiCorp and why? Show clearly the steps to arrive at the following estimates in Exhibit 10: Enterprise Value as Multiple of: Revenue EBIT EBITDA Net Income 6,252 8,775 9,023 7,596 6,584 9,289 9,076 7,553 MV Equity as Multiple of: EPS Book Value 4,277 5,904 4,308 5,678 Median Mean If you need to use a discount rate to discount cash flows then an appropriate discount rate estimate for PacifiCorp is approximately 9%.
It was Royscot's policy to enter into such hire-purchase agreements only if the customer paid at least 20 per cent. of the purchase price of the vehicle to the dealer as a deposit. In this case Rogerson's deposit of £1,200 was less than 20 per cent. of the purchase price of £7,600 but Maidenhead Honda nevertheless presented inaccurate figures to Royscot inducing them to believe that the precondition had been met. Rogerson took possession of the motor car but then wrongfully sold it to an innocent third party who took good title under the provisions of the Hire Purchase Act 1964 (as re-enacted by the Consumer Credit Act 1974).
I did not have information as to whether or not they could get more Japanese debt so cheaply, and the fact that their cost of debt under Joanna is less than the risk free rate does not make any sense. I took Nike’s current bond information on the market (N=50, PV=-956, PMT=67.5/2, FV=1000) you get an I/Y of 3.56*2=7.13%. That is the cost to issue new debt for Nike based on current market conditions. Should be 40 periods; -2 For the cost of equity Joanna did a better job. A mutual fund trying to get returns off of value based, large cap stocks will probably hold the stock for quite some time.
First, it was quite clear to me that Sandy would not admit her fault in upgrading from Lumber to Oak simply for profit instead of it being "the right thing to do." It was puzzling to me that she would take on a $250,000 upgrade simply based on my secretary's permission, who she probably finessed into agreeing with her, for reasons other than profit. The argument that my counterpart made in our negotiation was that I left any details to be handler with my secretary, but in no means did that give my secretary the power to approve such a massive undertaking. My counterpart and I from the start did not see similarly. So we moved on to a different subject - rent and loans.