Wozniacki and others form Jewel LLC, with each receiving a one-fifth interest in the capital and profits of the LLC. Wozniacki receives his one-fifth interest as compensation for tax planning services he rendered prior to the formation of the LLC. The other partners each contribute $245,675 cash. The value of a one-fifth capital interest in the LLC (for each of the parties) is $245,675.
a. How much income does Wozniacki recognize as a result of this transaction, and what is the character of the income?
b. How much is Wozniacki’s basis in the LLC interest?
c. How will Jewel treat this amount?
Answers: 3
Business, 22.06.2019 06:00
Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr
Answers: 2
Business, 22.06.2019 06:30
Ummit record company is negotiating with two banks for a $157,000 loan. fidelity bank requires a compensating balance of 24 percent, discounts the loan, and wants to be paid back in four quarterly payments. southwest bank requires a compensating balance of 12 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. the stated rate for both banks is 9 percent. compensating balances will be subtracted from the $157,000 in determining the available funds in part a. a-1. calculate the effective interest rate for fidelity bank and southwest bank. (do not round intermediate calculations. input your answers as a percent rounded to 2 decimal places.) a-2. which loan should summit accept? southwest bank fidelity bank b. recompute the effective cost of interest, assuming that summit ordinarily maintains $37,680 at each bank in deposits that will serve as compensating balances
Answers: 1
Business, 22.06.2019 20:00
Miller mfg. is analyzing a proposed project. the company expects to sell 14,300 units, plus or minus 3 percent. the expected variable cost per unit is $15 and the expected fixed cost is $35,000. the fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. the depreciation expense is $32,000. the tax rate is 34 percent. the sale price is estimated at $19 a unit, give or take 3 percent. what is the net income under the worst case scenario?
Answers: 2
Business, 22.06.2019 20:10
Your sister is thinking about starting a new business. the company would require $375,000 of assets, and it would be financed entirely with common stock. she will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an roe of 13.5%. how much net income must be expected to warrant starting the business? a. $41,234b. $43,405c. $45,689d. $48,094e. $50,625
Answers: 3
Wozniacki and others form Jewel LLC, with each receiving a one-fifth interest in the capital and pro...
Mathematics, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01
English, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01
History, 15.09.2020 01:01
Social Studies, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01
Social Studies, 15.09.2020 01:01
Arts, 15.09.2020 01:01
English, 15.09.2020 01:01
Mathematics, 15.09.2020 01:01