Kibble Ltd

question 52

Multiple Choice

Kibble Ltd. contributed some specialized equipment to receive a 45% interest in a joint venture, Lenard Inc. The equipment has a fair value of $640,000 and a carrying value of $300,000. Kibble also received $ 100,000 in cash from Lenard Inc. The other party to the joint venture, Farlinger Ltd, contributed cash of $660,000 for the 55% interest. It is deemed that the transaction lacks commercial substance. Based on the above, the gain to be recognized immediately by Kibble is:

• A)$0
• B)$53,125
• C)$100,000
• D)$340,000

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Definitions:

Emotional Capital

The resources available within individuals or groups based on trust, empathy, and social connections that can be beneficial for personal or collective success.

Marital Rituals

Customs and practices associated with marriage ceremonies.

Marital Constructs

The beliefs, principles, and social norms surrounding the institution of marriage.

Female In-laws

Female relatives by marriage, such as mothers-in-law or sisters-in-law, who can play significant roles in the dynamics of familial relationships.