Firm J sold marketable securities to Company B. Firm J's tax basis in the securities was...
Firm J sold marketable securities to Company B. Firm J’s tax basis in the securities was $66,500. Compute Firm J’s recognized gain or loss if: (If the results of a transaction do not result in a gain or loss, select 'No gain/loss') The selling price was $81,500, and Firm J and Company B are unrelated parties. The selling price was $81,500, and Firm J and Company B are related parties. The selling price was $55,400, and Firm J and Company...
1. R and J form an LLC, which is treated as a partnership for income tax purposes. R transfers cash of $500 to the LLC in return for a 50% ownership interest in the LLC. J transfers land with an adjusted basis of $380 and a fair market value of $500 in return for a 50% ownership interest in the LLC. a. What is R's amount realized? b. What is J's amount realized? c. What is R's gain/loss realized? d....
ACCOUNTING FOR MARKETABLE SECURITIES: As of December 31, 2018, Company A has the following investments in marketable securities: Acquisition Cost December 31, 2018 Market Value Trading Portfolio - Company B Common Stock $110,000 $108,000 Available for Sale Portfolio - Company C Common Stock $355,000 $357,000 Hold-To-Maturity Portfolio - Company D Debentures $500,000 $495,000 Additional Information: All three investments were purchased during 2018. During 2019, Company A sold its investment in Company B for $109,000 and its investment in Company C...
Data pertaining to the current position of Forte Company follow: Cash $412,500 Marketable securities 187,500 Accounts and notes receivable (net) 300,000 Inventories 700,000 Prepaid expenses 50,000 Accounts payable 200,000 Notes payable (short-term) 250,000 Accrued expenses 300,000 Required: 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place. 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results...
Data pertaining to the current position of Forte Company follow: Cash $430,000 Marketable securities 160,000 Accounts and notes receivable (net) 330,000 Inventories 700,000 Prepaid expenses 50,000 Accounts payable 240,000 Notes payable (short-term) 245,000 Accrued expenses 285,000 Required: 1. Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place. 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results...
Data pertaining to the current position of Forte Company follow: Cash $447,500 Marketable securities 180,000 Accounts and notes receivable (net) 325,000 Inventories 700,000 Prepaid expenses 46,000 Accounts payable 210,000 Notes payable (short-term) 240,000 Accrued expenses 300,000 Required: Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the...
Data pertaining to the current position of Lucroy Industries
Inc. follow:
Cash
$432,500
Marketable securities
185,000
Accounts and notes receivable (net)
325,000
Inventories
700,000
Prepaid expenses
46,000
Accounts payable
230,000
Notes payable (short-term)
245,000
Accrued expenses
310,000
Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital b. Current ratio C. Quick ratio 2. Compute the working capital, the current ratio, and the quick ratio...
Data pertaining to the current position of Lucroy Industries
Inc. follow:
Cash
$432,500
Marketable securities
185,000
Accounts and notes receivable (net)
325,000
Inventories
700,000
Prepaid expenses
46,000
Accounts payable
230,000
Notes payable (short-term)
245,000
Accrued expenses
310,000
1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $ 903,500 b. Current ratio 2.15 x C. Quick ratio 1.20 ✓ 2. Compute the working capital, the current...
Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $405,000 Marketable securities 162,500 Accounts and notes receivable (net) 310,000 Inventories 700,000 Prepaid expenses 42,000 Accounts payable 180,000 Notes payable (short-term) 250,000 Accrued expenses 305,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $ b. Current ratio c. Quick ratio 2. Compute the working capital, the current ratio, and the quick...
Firm OCS sold business equipment with a $21,500 initial cost basis and $8,665 accumulated tax depreciation. In each of the following cases, compute OCS's recaptured ordinary income and Section 1231 gain or loss on sale. (Losses should be indicated with a minus sign. Leave no cell blank. Enter "O" for cells that do not have an amount.) a. Amount realized was $10,300. b. Amount realized was $13,300. c. Amount realized was $17,800. d. Amount realized was $24,300. a. Recaptured ordinary...