Marissa Sold Stock of a Non-Publicly Traded Corporation with an Adjusted

question 63

Essay

Marissa sold stock of a non-publicly traded corporation with an adjusted basis of $36,000 for $48,000.Marissa received a down payment of $12,000 with the balance due in equal payments over the next two years.
a.What is the amount of gross profit to be recognized in the year of sale?
b.Assume that the buyer defaulted on the final payment.Marissa sued and was able to repossess the stock.The fair market value of the stock on the date of repossession is $36,000; legal fees were $1,500.What is the gain or loss on the repossession?

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Definitions:

Moral Values

Fundamental beliefs about what is right or wrong, which serve as a basis for behavior and form the foundation of ethical conduct.

Ethical Issues

Challenges or situations that involve choosing between moral principles, where the right course of action is not immediately clear.

Succession Crisis

A situation where an organization faces significant challenges in identifying and preparing a successor for a key leadership role.

Charismatic Leader

A person who inspires and motivates followers through their personality, persuasiveness, and charm.