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Cowboy Corporation Owns 90% of the Single Class of Stock  Doggie  Cowboy $0$0\begin{array} {| l | l |} \hline \text { Doggie } & \text { Cowboy } \\\hline \$ 0 & \$ 0 \\\hline\end{array}

question 21

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Cowboy Corporation owns 90% of the single class of stock in Doggie Corporation.The other 10% is owned by Miguel,an individual.Cowboy's basis in its Doggie Corporation stock is $100,000 and Miguel's basis is $50,000.Doggie Corporation distributes property having an adjusted basis of $150,000 and an FMV of $500,000 to Cowboy Corporation,and $60,000 of money to Miguel as a liquidating distribution.Doggie and Cowboy Corporations must recognize gain of:


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Machine-Hours

A measure of production output or activity based on the number of hours machines are in operation.

Batches

Groups of items or products processed or produced together as a single lot within a manufacturing or production process.

Activity Rates

Charges or costs associated with specific business activities, often used in activity-based costing to allocate overhead.

Activity-Based Costing

A method of allocating costs to products and services based on the activities they require, aiming to provide more accurate cost information.

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