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Requirement a. What are the net gains and losses from the above items and their character? (if a box is not used in the table or the balance is "0" leave the box empty; do not enter a zero. Enter a loss with a minus sign or parentheses) Short-term gain (loss) Long-term gain (loss) Ordinary income (loss) Baldwin Corporation IBM Microsoft Tidal Radio Wavetable Defaulted loan ABC Corporation

Requirement a. What are the net gains and losses from the above items and their character? (if a box is not used in the table or the balance is "0" leave the box empty; do not enter a zero. Enter a loss with a minus sign or parentheses) Short-term gain (loss) Long-term gain (loss) Ordinary income (loss) Baldwin Corporation IBM Microsoft Tidal Radio Wavetable Defaulted loan ABC Corporation

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Five years ago, Kevin and his brother Matt formed Baldwin Corp.. a golf apparel manufacturing corporation. At that time, Kevin contributed $324,000 to the corporation in exchange for 55% of its stock. During the current year, Kevin needed some cash to purchase a golf course so he sold a third of his interest in Baldwin Corp. for $81,000. He also sold stock in the following companies for the amounts indicated: (Click the icon to view the amounts and additional information) Read the requirements Requirement a. What are the net gains and losses from the above items and their character? (If a box is not used in the table or the balance is "0" leave the box empty; do not enter a zero. Enter a loss with a minus sign or parentheses.) Short-term gain (loss) Long-term gain (loss) Ordinary income (loss) Baldwin Corporation IBM Microsoft Tidal Radio Wavetable Defaulted loan ABC Corporation
Transcribed Image Text:Five years ago, Kevin and his brother Matt formed Baldwin Corp.. a golf apparel manufacturing corporation. At that time, Kevin contributed $324,000 to the corporation in exchange for 55% of its stock. During the current year, Kevin needed some cash to purchase a golf course so he sold a third of his interest in Baldwin Corp. for $81,000. He also sold stock in the following companies for the amounts indicated: (Click the icon to view the amounts and additional information) Read the requirements Requirement a. What are the net gains and losses from the above items and their character? (If a box is not used in the table or the balance is "0" leave the box empty; do not enter a zero. Enter a loss with a minus sign or parentheses.) Short-term gain (loss) Long-term gain (loss) Ordinary income (loss) Baldwin Corporation IBM Microsoft Tidal Radio Wavetable Defaulted loan ABC Corporation
Five years ago, Kevin and his brother Matt formed Baldwin Corp., a golf apparel manufacturing corporation. At that time, Kevin contributed $324,000 to the corporation in exchange for 55% of its stock. During the current year, Kevin needed some cash to purchase a golf course so he sold a third of his interest in Baldwin Corp. for $81,000. He also sold stock in the following companies for the amounts indicated (Click the icon to view the amounts and additional information.) Read the requirements. empty; do not enter a zero. En Baldwin Corporation IBM Microsoft Tidal Radio Wavetable. Defaulted loan ABC Corporation Salary Net iminal More info Corporation Sales Proceeds Adjusted Basis 18,000 49,000 13,000 31,000 $ 21,000 $ 35,000 39,000 27,000 When Acquired 52 months ago 18 months ago 7 months ago 4 months ago - X IBM Microsoft Tidal Radio Wavetable During the year Kevin hired a collection agency to collect a $22,000 loan he made to an old friend, which was due in full on January 1 of the current year. The agency found no trace of his friend. Also during the year, ABC Corporation, in which he owns stock, went bankrupt. His investment was worth $93,000 on January 1, he purchased it six years ago for $107.000, and he expects to receive only $12,000 in redemption of his stock. Finally, Kevin's salary for the year was $120,000 for his work as an associate professor.
Transcribed Image Text:Five years ago, Kevin and his brother Matt formed Baldwin Corp., a golf apparel manufacturing corporation. At that time, Kevin contributed $324,000 to the corporation in exchange for 55% of its stock. During the current year, Kevin needed some cash to purchase a golf course so he sold a third of his interest in Baldwin Corp. for $81,000. He also sold stock in the following companies for the amounts indicated (Click the icon to view the amounts and additional information.) Read the requirements. empty; do not enter a zero. En Baldwin Corporation IBM Microsoft Tidal Radio Wavetable. Defaulted loan ABC Corporation Salary Net iminal More info Corporation Sales Proceeds Adjusted Basis 18,000 49,000 13,000 31,000 $ 21,000 $ 35,000 39,000 27,000 When Acquired 52 months ago 18 months ago 7 months ago 4 months ago - X IBM Microsoft Tidal Radio Wavetable During the year Kevin hired a collection agency to collect a $22,000 loan he made to an old friend, which was due in full on January 1 of the current year. The agency found no trace of his friend. Also during the year, ABC Corporation, in which he owns stock, went bankrupt. His investment was worth $93,000 on January 1, he purchased it six years ago for $107.000, and he expects to receive only $12,000 in redemption of his stock. Finally, Kevin's salary for the year was $120,000 for his work as an associate professor.
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