Kathy Was a Shareholder in Matrix, Inc

question 5

Multiple Choice

Kathy was a shareholder in Matrix, Inc., when she sold the corporation a commercial building. The building cost $500,000 and the balance in the accumulated depreciation account was $400,000. Matrix, Inc., paid $100,000 in the year of sale and gave Kathy a note for $400,000 plus adequate interest due in 2019.

• A) Because Kathy is a shareholder in Matrix, she cannot report the gain by the installment method.
• B) Generally, if Kathy owned 100% of the Matrix stock, Kathy cannot use the installment method.
• C) Generally, if Kathy owned only 60% rather than 100% of the Matrix stock, she could use the installment method.
• D) Kathy cannot use the installment method to report the gain because the realized gain is equal to the depreciation she claimed on the building.
• E) None of the above.

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed on an annual basis.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, typically measured annually.

Profits

The financial gains obtained when revenue from business activities exceeds expenses, costs, and taxes.

Expected Rate Of Return

The predicted amount of return a given investment is anticipated to earn over a specified period.