Ask Question, Ask an Expert


Ask Accounting Basics Expert

The Trap Corporation liquidates. One shareholder, who owned 30 percent of the stock, receives for the stock, inventory worth $90,000 with a basis of $70,000. Trap Corporation will recognize:

a. $20,000 of capital gain

b. $20,000 of ordinary income

c. $20,000 of Sec. 1231 gain

d. No gain

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M938764

Have any Question? 

Related Questions in Accounting Basics

Barriers to critical thinkinginstructions1 refer to kirby

Barriers to Critical Thinking Instructions: 1. Refer to Kirby and Goodpaster (2007), Thinking: An interdisciplinary approach to critical and creative thought, Ch. 2. 2. There are multiple categories of internal barriers ...

1 the rule that requires financial statements to reflect

1. The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the: Going-concern a ...

Practice questionsconsider a business where you have had

Practice questions: Consider a business where you have had work experience or any other organisation with which you are familiar. What aspects of the business do you think are important which are not shown in the financi ...

Practice questionskerry melrose has a conference organising

Practice questions: Kerry Melrose has a conference organising business and is thinking of buying some computer-controlled audio visual equipment. She has done her calculations on a cash basis and has discovered that the ...

Big alrsquos pizza inc a new subsidiary of big alrsquos

Big Al’s Pizza, Inc., a new subsidiary of Big Al’s Pizza Emporium, has been established to produce partially baked, flash-frozen, 16-inch meat pizzas to be sold wholesale to grocery and convenience stores and school cafe ...

Actg5210p assignment-sofias furniture sf makes residential

ACTG5210P Assignment- Sofia's Furniture ("SF") makes residential wet bar equipment from real wood and sells them through three sales outlets. The product line consists of two styles of bar stools, three styles of bar cou ...

Rauacutel esparza the ecommerce manager for moonlight mugs

Raúl Esparza, the ecommerce manager for Moonlight Mugs, a company that sells customized coffee mugs, would like to send information to another company that maintains the warehouse and provides shipping services. Order in ...

1 which of the following scenarios will qualify under

1. Which of the following scenarios will qualify under Section 351 as a nontaxable corporate formation? For those that do not qualify, what requirement of section 351 do they violate? a. Giner, Mary Ann, and Mrs. Howell ...

Sanford company -the sanford company had the following

Sanford Company - The Sanford Company had the following balance sheet as of December 31, 20x2.  The transactions for the first three months of 20x3 are also presented along with other information about specific accounts. ...

Partnership characteristicsindicate whether each statement

Partnership Characteristics Indicate whether each statement below is a reflection of (a) voluntary association, (b) a partnership agreement, (c) limited life, (d) mutual agency, or (e) unlimited liability. 1. A written c ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate