Max is the sole shareholder of smart corporation he started

Assignment Help Finance Basics

Reference no: EM13622273

Max is the sole shareholder of Smart Corporation. He started the internet company five years ago and has been working hard to turn a profit. Predicting that Smart will to be very profitable next year, Max had Smart borrow $250,000 to pay him the salary he rightly deserves. At the end of the current year, Smart has total assets of $400,000 and liabilities of $350,000. Max's basis in his stock is $200,000. Next year, Smart does become profitable and Max is approached by Buyall Corporation, a competitor, to sell Smart. Rather than a sale, Max suggests a merger in which he receives stock in Buyall in the amount of $700,000 plus $50,000 cash for all the assets and liabilities associated with the assets ($150,000). Buyall counters with an offer of $650,000 in Buyall stock for all of the assets and the $250,000 salary liability. Should Max take Buyall's offer or insist on what he wants?

Reference no: EM13622273

Questions Cloud

Suppose that a and b are events defined on a common sample : suppose that a and b are events defined on a common sample space and that the following probabilities are known. find

Faro technologies whose products include portable 3d : faro technologies whose products include portable 3d measurement equipment has 400 million shares outstanding trading

Suppose that a and b are events defined on a common sample : suppose that a and b are events defined on a common sample space and that the following probabilities are known. find

If the original frequency is held constant and the tension : a standing wave pattern is observed in a thin wire with a length of 3.00m. the equation of the wave is given below

Max is the sole shareholder of smart corporation he started : max is the sole shareholder of smart corporation. he started the internet company five years ago and has been working

A flow of 305 kgmin of water from a hot water tank at 51oc : a flow of 30.5 kgmin of water from a hot water tank at 51oc is mixed with a 29.1 kgmin flow of 20oc water. determine

Help inc a tax-exempt organization incurs lobbying expenses : help inc. a tax-exempt organization incurs lobbying expenses of 275000 during the tax year. help is eligible for and

A bug standing on the axis decides to crawl out to the : a thin rod has a length of 0.694 m and rotates in a circle on a frictionless tabletop. the axis is perpendicular to the

A random sample of records of electricity usage of homes : a random sample of records of electricity usage of homes gives the amount of electricity used in july and size in

User Account

All Pages