Determine the future value of target venture

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1. Determine the future value of a target venture which has net income expected to be $30,000 at the end of four years from now. A comparable firm currently has a stick price of 20 per share, 100,000 shares outstanding, and net income of 50000.

2. In October 2017, Ben and Jerry exchange investment realty in a § 1031 like-kind exchange. Ben bought his real estate in 2006 while Jerry purchased his in 2009. In addition to the realty, Ben receives Pearl, Inc. stock worth $10,000 from Jerry. Ben’s realized gain is $30,000.

a. When does the holding period begin for the realty and why?

b. When does the holding period begin for the stock and why?

Reference no: EM132057495

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