Reference no: EM131499935
Assignemnt: Acquisitions and Mergers
JIM is acquiring all of the assets of Mason Machining, Inc. in a merger transaction. Mason transfers assets having a FMV of $1,775,000 and an adjusted basis of $995,000 and $200,000 in liabilities to JIM in exchange for $750,000 in cash and $800,000 of JIM's common stock.
View Mason's Acquisition Data.
- Explain what type of merger this is. JIM distributes its stock and cash to Mason in exchange for all of its assets.
- Calculate Mason's gain on this transaction.
- How much of this gain will Mason recognize?
- How must tax liability will Mason incur from this transfer?
Mason distributes the JIM stock and cash to its shareholders for all of their shares of Mason's stock. Shareholders' basis in this stock is $600,000.
- Calculate how much gain the Mason's shareholders will realize and recognize on this transfer.
- How must tax liability will Mason's shareholders incur from this transfer?
- Explain the tax implications for JIM.
|
Explain the basis for this contention as well
: It has been argued that the scheme for financing Social Security is unfair because people with low earnings are taxed at a higher rate than individuals.
|
|
Key barriers to small business internationalization
: Discuss the key barriers to small business internationalization. What recommendations would you make to small businesses in overcoming these barriers?
|
|
What is the bonds price
: YTC of annual coupon bond Seven years ago the Templeton Company issued 26-year bonds with 11% annual coupon rate at their $1,000 par value.
|
|
Determining the construction management
: To increase your knowledge of the field, come up with an original example of a project and write a four-page essay on project closeout.
|
|
How must tax liability will mason incur from this transfer
: How must tax liability will Mason incur from this transfer? Calculate how much gain the Mason's shareholders will realize and recognize on this transfer.
|
|
Any movie based on a true story or inspired by real events
: Any show involving competition (Ex. Sports, American Idol, The Bachelor, Survivor, The Price ?is Right, etc.) ?.
|
|
Discuss problem that can arise when people vote over options
: In 1998, the people of Puerto Rico held a referendum in which there were five choices-retain commonwealth status, become a state, become independent.
|
|
Subscription offering dvd rentals and unlimited video
: In 2011, Netflix customers' service fees increased by 60%. Netflix discontinued a subscription offering DVD rentals and unlimited video streaming for $9.99.
|
|
Compute average return differential with and without sign
: Compute the average return differential with and without sign.
|