Discuss assets and liabilitie between the two corporations

Assignment Help Accounting Basics

Reference no: EM132018411

Question: Angela and Betty each own 50% of Hair Sensations, an incorporated salon business. They have decided to split the corporation into two. Angela will keep Hair Sensations, and Betty will start a new company, Hair and Nails by Betty. $50,000 in equipment, $5,000 in cash, and $14,000 in loans will be split equally between the two corporations. The split of assets and liabilities between the two corporations will close on December 31, 20X8.

Document this transaction using the split-off type D reorganization memorandum format.

Show or explain all calculations within the body of the submission document. This means that you must use formulas and links so that your thought process can be examined. Make good use of comments to convey your thought process as well.

Maintain a formal tone and support your analysis. Back up your discussion with research from scholarly sources

• Your analysis should be 3-4 pages in length not counting the title and reference pages

• 3 references

• APA FORMAT

Reference no: EM132018411

Questions Cloud

What are the prices of the two bonds at this time : The Mariposa Co. has two bonds outstanding. What are the prices of the two bonds at this time?

Horizontal analysis of income statement and balance sheet : Provide a brief overview of your company (one to two paragraphs at most). What industry is it in? What are its main products or services?

Compute the coupon rate on this bond : Tutak bond is currently selling for $1,292.65. Assume bond coupons are paid semiannually. Compute the coupon rate on this bond.

Assume the market is in equilibrium with required return : what is the value of the stock today (assume the market is in equilibrium with the required return equal to the expected return)?

Discuss assets and liabilitie between the two corporations : Angela and Betty each own 50% of Hair Sensations, an incorporated salon business. They have decided to split the corporation into two.

Explain differences between tax avoidance and tax evasion : Analyze these issues based on your knowledge of corporate taxation in the United States and within international contexts.

What are the variable costs for the product line : What are the variable costs for this product line? What are the fixed costs? I would recommend that you show a schedule for each area on a yearly basis.

How much annual interest is paid to the bondholder : How much annual interest is paid to the bondholder? What is the bond’s yield to maturity?

Culture of innovation within your own organization : What particular elements of each organization's culture, processes, and management systems and styles work well to support innovation

User Account

All Pages