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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Glottis

The opening between the vocal cords in the larynx, crucial for producing vocal sounds.

Positive Message

Communication that conveys favorable, optimistic, or encouraging information or sentiments.

News Release

An official statement issued to newspapers, magazines, and other media for the purpose of providing information, an announcement, or making an official statement.

Customary Pattern

Established or habitual methods of behavior or operations typical within a particular context or environment.