eCheater123 eCheater123

01-06-2020
Business

contestada

Wozniacki and Wilcox form Jewel LLC, with each receiving a one-half interest in the capital and profits of the LLC. Wozniacki receives his one-half interest as compensation for tax planning services he rendered prior to the formation of the LLC. Wilcox contributes $50,000 cash. The value of a one-half capital interest in the LLC (for each of the parties) is $50,000.

How much income does Wozniacki recognize as a result of this transaction, and what is the character of the income?

Respuesta :

sadddamkashmiri801 sadddamkashmiri801

02-06-2020

Answer:

Recognize the $50,000 as a compensation income received.

Explanation:

The reason is that the Compensation of $50,000 that Wozniacki received for the services that he previously used to render which means this whole amount received must be recognized as income.

Answer Link

Otras preguntas

As Kyle conducts his annual evaluations of his employees, he notices that Connie and Debbie have both been less productive since they were relocated in the same

Complete the sentence The Earth’s earliest atmosphere contained large amounts of carbon dioxide. The percentage of carbon dioxide in the Earth’s atmosphere tod

Traveling from City 1 to City 2, a pilot planned a southeast course along the path labeled d. Instead, a storm forced the pilot to travel 32 miles south, then 2

A TV satellite dish is designed to receive radio waves of wavelength 0.0644 meters. What is the frequency of the waves it receives? _______GHz Give your answer

Find the intersection point between the lines of equations:2x-y+6=0 and 2x+3y-6=0

Antibody tests are commonly used for rapid diagnosis of many types of infection. However, they are NOT particularly useful for diagnosis of histoplasmosis. Why

Leé el siguiente texto y responde: Por necesidad, por interés o por ignorancia, los diferentes grupos sociales vamos lentamente degradando el ambiente que nos r

Required: Mr. Jones, eager to please the board of directors, requests you, as the newly appointed management accountant, to prepare appropriate statements highl

At an activity level of 9,300 machine-hours in a month, Curt Corporation's total variable production engineering cost is $766,320 and its total fixed production

Desde el punto de vista demográfico, es correcto decir que con el proceso de la Revolución Industrial: I. Cambias las formas de producción. II. Se dan fenómemos