What is Jed and Zia recognized gain or loss

Assignment Help Accounting Basics
Reference no: EM132662452

Problem - Jed acquired 25% of the stock of Alpha (basis of $100,000) 12 years ago, and the other 75% was purchased by Zia (basis of $400,000) three years ago. Alpha enters into a tax-free consolidation with Beta, in which Jed will receive an 8% interest in the new AlphaBeta (value $90,000) plus $36,000 cash and Zia will receive a 28% interest (value $315,000) plus land worth $63,000. Alpha's basis in the land is $35,000. Before the reorganization or distributions to its shareholders, Alpha's value is $504,000 and Beta's value is $720,000.

Required -

a. What is Jed's and Zia's recognized gain or loss on the reorganization? What is each shareholder's basis in his or her AlphaBeta stock? Prepare your solution using spreadsheet software such as Microsoft Excel.

b. What is Alpha's and Beta's recognized gain or loss on the reorganization?

c. Diagram the consolidation of Alpha and Beta corporations.

Reference no: EM132662452

Questions Cloud

Recommendation about the impact of covid-19 : Can you give me some recommendation about the impact of COVID-19 with the travel ban in Hotel industries?
Communicate within your job or social activity : How has technology changed the way you communicate within your job or social activity? Has it made communication easier or more challenging?
Will receive a margin call : You have tresury bill amounting to 65000, Will you receive a margin call if the maintenance margin by the broker is 45%? Compute forthe critical price
Explain the importance of ethical decision-making : Explain the importance of ethical decision-making for health care professionals. Summarize the evidence presented in the resolution of the legal case.
What is Jed and Zia recognized gain or loss : What is Jed's and Zia's recognized gain or loss on the reorganization? What is each shareholder's basis in his or her AlphaBeta stock
Write a query using analytic functions : Write a query using analytic functions that will show the serial number, the price of each JAGUAR car as well as the cumulative sale price totals.
What information stood out to you from the presentation : How big of an impact do you think emotional intelligence has on helping people be successful? In addition, view the video below (33:38). What information stood
Trade-offs between inputs for productivity improvements : Analyze the trade-offs between inputs for the productivity improvements. Analyze the advantages and disadvantages of global sourcing versus producing in the U.S
Indicate the amount and the direction of effects : Aubrae Company, indicate the amount and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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