Shareholder basis in new stock

Assignment Help Accounting Basics
Reference no: EM13137272

Greystoke, Inc. acquires the assets of Blackstone, Ltd. for its voting convertible preferred stock and assumes liabilities of $60,000. The assets have a basis of $250,000 and a value of $380,000. One of the shareholders in Blackstone trades her old shares with a basis of $3,000 for stock in Greystoke worth $3,200.

(a) What kind of reorganization took place?

(b) What is Greystoke's basis in the acquired assets?

(c) What is the shareholder's basis in her new stock?

(d) What would change, if, instead of assuming $60,000 of liabilities, this amount were paid in cash?

Reference no: EM13137272

Questions Cloud

A bullet is fired horizontally into a wood block resting : A bullet is fired horizontally into a wood block resting on a horizontal, frictionless surface. If the mass of the bullet is 0.02 Kg and the velocity is 600 m/s
American economy transform from 1945-2001 : how did the American economy transform from 1945-2001? What were the major causes of this transformation?
Adequacy of existing controls : Identify existing controls Adequacy of existing controls Consequence rating Likelihood rating Level of risk Risk Priority What can happen How it can happen
Determining charismatic leader : Think of a leader in our society today who is generally preceived to be a charasmitic leader. In your opinion, which of the behavioral components of charima described in the text can be attributed to him or her?
Shareholder basis in new stock : (a) What kind of reorganization took place? (b) What is Greystoke's basis in the acquired assets? (c) What is the shareholder's basis in her new stock? (d) What would change, if, instead of assuming $60,000 of liabilities, this amount were paid in ca..
Probability-satisfactory robot will overhauled unnecessarily : Proportion of out-of-tolerance items is greater than 0.02, the robot will be overhauled. Otherwise it will be allowed to continue operating. What is the probability that a satisfactory robot will be overhauled unnecessarily?
How many milliliters of 12.6 m hcl solution are needed : How many milliliters of 12.6 M HCl solution are needed to obtain 0.105 mol of HCl?
Matrix-wmd threat analysis : Provide a detailed assessment of how a significant terrorist WMD attack might be conducted. Include the type of materials that might be used, targets, and form of attack
What amount should have been assigned to non-controlling : What amount should have been assigned to the non-controlling interest immediately after the combination?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Issuance of bonds and payment of interest

On March 1, Year 1, a firm issues $475,000 bonds at par value plus accrued interest. The stated rate on the bonds was 12% and the bonds pay interest semi-annually on June 30 and December 31. Prepare the entries necessary to record

  Convertible preferred stock dividend

On September 1, 2008, Melissa paid $50,000 for 500 shares of WH Inc. common stock. On October 15, 2010, Melissa received a taxable 10% convertible preferred stock dividend (i.e., 50 shares).

  Payroll journal entry

Maggie Moo's Ice Cream Shop had a gross pay of $19,000 and a net pay of $13,200 for the latest payroll. The journal entry to pay the payroll would be:

  Basics of rentals and stocks

Unfortunately, both the rentals and the stocks have lost over half its value due to recent market crashes . As a sole beneficiary of his estate, how would you advise your dear uncle?

  What are the relevant tax issues

Because of Wyatt's loyalty, Julie would like him to have shares in the corporation. What are the relevant tax issues?

  What is the target cost per clock

The product design team at New Time Products is in the process of designing a new clock using target costing. Product features in comparison to competing prodcuts suggest a price of $30 per unit. The company requires a profit of 30 percent of sel..

  Convergence of ifrs and us gaap

Discuss the efforts made toward convergence of International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP) on the financial performance reporting by business enterprises.

  Should dr. avard buy the machine

She also expected additional case expenses amounting to $3,000 per years. The cost of capital is 12%. Assume there are no income taxes.

  Why would carter be concerned with the value assigned

Lump-Sum Purchase of Assets and Subsequent Events Carter Development Company purchased, for cash, a large tract of land that was immediately platted and deeded into smaller sections.

  Internal control over financial reporting

An auditor has been hired to report on an nonissuer's internal control over financial reporting. Which of the following best describes a reporting option in this scenario?

  What are the tax consequences in year one

Britney is beneficiary of an $150,000 insurance policy on her father's life. Upon his death, she may elect to receive the proceeds in five yearly installments of $32,000 or may take the $150 lump sum. She elects to take the lump sum payment. What ..

  Job order costing system

Which of the following would most likely use a job order costing system? ... most likely use a job order costing system?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd