During 2016,Jimmy Incorporates His Data Processing Business

question 47

Multiple Choice

During 2016,Jimmy incorporates his data processing business.Jimmy is the sole shareholder.The following assets are transferred to the corporation:
Cash $2,000
Computer Equipment:
Fair market value 20,000
Adjusted basis 12,000
Original cost 24,000
Furniture:
Fair market value 20,000
Adjusted basis 32,000
Original cost 64,000
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What will be the basis of the assets to the corporation after the transfer?
​
Computer Equipment Furniture

• A)$20,000 $20,000
• B)$12,000 $20,000
• C)$20,000 $32,000
• D)$12,000 $32,000
• E)$24,000 $64,000

Understand how cost-volume-profit (CVP) analysis aids in decision making.

Determine the contribution margin and its significance in business operations.

Analyze the impact of changes in sales price, cost, and volume on profit.

Utilize the high-low method to estimate variable and fixed components of costs.

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Definitions:

Semiannual Payments

Payments that are made twice a year, commonly found in the context of bonds or loan agreements.