Clampett, Inc. has been an S corporation since its inception. On July 15, 2019, Clampett, Inc. distributed $50,000 to J. D. His basis in his Clampett, Inc. stock on January 1, 2019, was $30,000. For 2019, J. D. was allocated $10,000 of ordinary income from Clampett, Inc. and no separately stated items. What is the amount of income J. D. recognizes related to Clampett, Inc. in 2019?

Answers

Answer 1

Answer:

$20,000

Explanation:

Distribution basis = $50,000

Stock basis = $30,000

Ordinary income = $10,000

To compute capital gain tax,

Capital gain = Distribution basis -Stock basis - Ordinary income

= $50,000 - $30,000 - $10,000

= $10,000

To compute J.D income related to Clampett;

= Ordinary income + Capital gain

= $10,000 + $10,000

= $20,000


Related Questions

The nominal exchange rate is about 2 Aruban florin per dollar. If a basket of goods in the United States costs $50, how many florins must a basket of goods in Aruba cost for purchasing-power parity to hold

Answers

Answer:

100 florins

Explanation:

Purchasing Power Parity is a theory which compares currency of different countries through basket of goods. This is a method to compare purchasing power of currencies of different countries. If nominal exchange rate is 2 Aruban florin per dollar and basket of good in United States cost $50 then there must be 100 florins in the basket.

2 Florin per dollar * $50 = 100 Florins.

The CEO/chairman of PharmaPacifica was recently killed in an airplane crash. This tragedy has thrown PharmaPacifica into turmoil as there is no one in the organization qualified to step into the former CEO’s shoes. This is an example of:

Answers

Answer:

A failure or lack of succession management

Explanation:

The going concern of any business should always be its top priority. This is the reason why every organization should have a good succession planning and management in place.

Succession management is a process of having in place a program that prepares and equips potential leaders with adequate experience and skills to take over from incumbent leaders whenever they are out of service , so that the business can maintain its existence into the future.

In a situation where a succession management is not in place or effective , the death of a leader causes a major setback to the business as can be seen in the question.

A company pays an employee $3,000 for a five-day work week, monday–friday. the adjusting entry on december 31, which is a wednesday, is a debit to wages expense, $1,800, and a credit to wages payable, $1,800. true

Answers

Answer: True

Explanation:

From the question, we are told that a company pays an employee $3,000 for a five-day work week from Monday to Friday. This means that the employee receives a daily payment of ($3,000/5) = $600.

On Wednesday which is the third day, he will be paid ($600 × 3) = $1800. Therefore , the adjusting entry on December 31, which falls on a Wednesday will be to debit the wages expense, $1,800, and then credit to wages payable of $1,800.

In a monopolistically competitive market, a. the entry of new firms creates externalities. b. the absence of restrictions on entry by new firms ensures that there will be no deadweight loss. c. there are always too many firms in the market relative to the socially-optimal number of firms.

Answers

Better choose A variant

Hearing that her job has been terminated, Eleanor has responded by saying, "I never will get another job. There is no other work that I can do." Her counselor responds by saying, "There are other jobs that you can do. I will help you consider other types of work." The counselor's statements most clearly fits:______.
A. Holland's theory.
B. Myers- Briggs Type theory.
C. social learning theory.
D. Super's developmental theory.

Answers

Answer:

C

Explanation:

Q 11.35: Felix Incorporated has just exchanged 1,250 shares of $65 par-value preferred stock for a parcel of land advertised for a price of $90,000. If the current market value of the stock is $75 per share, how should Felix journalize this transaction

Answers

Answer:

Felix Incorporated

Exchange of Preferred Stock for Land:

Journal Entries:

Debit Land $90,000

Credit Preferred Stock $81,250

Credit Additional Paid-in Capital - Preferred Stock $8,750

To record the issue of 1,250 of $65 par-value preferred stock for land with a fair price of $90,000.

Explanation:

Felix Incorporated will debit Land with the fair price of $90,000 and Credit the Preferred Stock account with $81,250 (1,250 x $65) at par-value.  The difference between the fair price of land and the preferred stock at par-value is credited to additional paid-in capital account for preferred stock.  Felix Incorporated cannot take into account the current market value of the stock at $75 in its accounting records.  The current share price of $75 is for the benefit of investors, and can only serve as basis for Felix Incorporated to decide transactions with potential investors.

In her research paper, Kirstein copied a few paragraphs from a renowned author's work verbatim without placing them within quotation marks or citing the source. The review board rejected her paper on grounds of plagiarism. In this scenario, Kirstein has committed:_________.

Answers

Answer:

Word-for-word.

Explanation:

Word for word plagiarism is seen to be an unethical form of writing where the said student or researcher is seen to copy a fellow researchers works verbatim and particularly word for word with also quotation marks too. In as much as this is a bad form for writers, people are always seen to commit themselves in still doing it. This can cause a lawsuit in some places depending on the researcher whose work is been stolen/copied.

In all, it is been tagged an act of intellectual dishonesty which comes with uneasy consequences when it is done to a wrong person; a plagiarized assignment may lead to a failing grade, a suspension, or an expulsion.

Suppose the countries of Iceland and Norway set up a free trade area, eliminating all trade barriers between themselves but maintaining tariffs on imports from the rest of the world. Now, Iceland begins to import wool from Norway. However, Iceland had previously been importing wool from England, which produced wool more cheaply than both Iceland and Norway. What is this an example of

Answers

Answer:

Trade Bloc

Explanation:

Trade Bloc is a type of agreement between two sovereign nations in which barriers to trade are either reduced or totally eliminated between the two nations. This type of agreement can either be one agreement between several nations or a part of a regional organization.

So, the example of Iceland and Norway is an example of a trade bloc.

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