Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

SMTO Inc. had one class of stock outstanding. The one class of stock was owned 50 shares by Lana, 30 shares by Lana's mother, and 20 shares by Lana's grandmother. On December 31, 2012, SMTO Inc. redeemed 20 of Lana's 50 shares, and in exchange for the stock, SMTO Inc. distributed to Lana a building that had an adjusted basis to SMTO Inc. of $10,000 and a fair market value of $50,000. Assume that SMTO Inc.'s current earnings and profits were $200,000, there were no accumulated earnings and profits, and Lana's total basis in her stock before the redemption was $20,000. How much is Lana's basis in her remaining stock after the redemption, and what is her basis in the building?

a. Stock basis: $10,000; building basis: $10,000.

b. Stock basis: $10,000; building basis: $50,000.

c. Stock basis: $20,000; building basis: $10,000.

d. Stock basis: $20,000; building basis: $50,000.

e. None of the above.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M939503

Have any Question? 


Related Questions in Accounting Basics

Assignmentapplication break-even analysiswhen expenses and

Assignment Application: Break-Even Analysis When expenses and revenues are equal, this is known as the "break-even point" or BEP. To determine break-even, an examination of fixed and variable costs (expenses) in relation ...

Individual project instructionsobjectiveyour objective is

Individual Project Instructions OBJECTIVE Your objective is to use analytical tools to understand and improve business performance and to present your analysis using effective data visualizations in a dashboard format. F ...

Question 1if total liabilities are 1000 and total assets

Question 1 If total liabilities are $1,000 and total assets are $8,000, owner's equity must be A. $7,000. B. $3,000. C. $10,000. D. $13,000. Question 2 If total assets are $30,000 and total liabilities are $18,000, capit ...

International accounting1 tax jurisdiction and double

INTERNATIONAL ACCOUNTING 1. Tax Jurisdiction and Double Taxation Basis for taxation come from three common bases for taxation...they are source, citizenship, and residence. (Fill in the blanks below) a. The citizenship b ...

Assignment questionbesar ltd acquired all of the shares in

Assignment Question Besar Ltd acquired all of the shares in Kecil Ltd on 1 July 2015. At that date, equity of Kecil Ltd consisted of: Share Capital $2 000 000 Retained earnings 800 000 At 1 July 2015, all the assets and ...

Assignmentguidelines for individual case assignment cutting

Assignment Guidelines for Individual Case Assignment: Cutting Edge Instructions This is an individual assignment and therefore must be completed by the individual student without outside assistance. In order to complete ...

Background of projectthe industry of medical devices

Background of Project The industry of medical devices involves a number of monitoring and reconstructive devices. Some of those devices include cardiac and diabetic care as well as hip and knee replacements. The owners o ...

Assignmentyour accounting firm has been asked to recommend

Assignment Your accounting firm has been asked to recommend an online accounting system for several businesses who are looking to automate their accounting. Research five online accounting systems (including QuickBooks O ...

This is a group work and i entitle do the cash flow

This is a group work and I entitle do the cash flow analysis for Home Depot. Please no more than two pages. Assume that your Group has been hired to serve as my new Investment Advisory Team. I am looking for new investme ...

Problem -a list of transactions appears below indicate

Problem - A list of transactions appears below. Indicate which accounting elements of the business are affected by placing in the respective columns the amount and the + (increasing) - (decrease) sign or NA, if the eleme ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen