Renee, the sole shareholder of indigo corporation, sold her stock to chad on july 1 for $180,000. renee's stock basis at the beginning of the year was $120,000. indigo made a $60,000 cash distribution to renee immediately before the sale, while chad received a $120,000 cash distribution from indigo on november 1. as of the beginning of the current year, indigo had $26,000 in accumulated e & p, while current e & p (before distributions) was $90,000. which of the following statements is correct? renee recognizes a $60,000 gain on the sale of the stock. a. b. renee recognizes a $64,000 gain on the sale of the stock. c. chad recognizes dividend income of $120,000. d. chad recognizes dividend income of $30,000. e. none of the above.

Which of the following is located at the point where the supply and demand curves intersect? a. the equilibrium price. b. the minimum supply. c. the level of efficient production. d. the maximum demand. 2b2t

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

Six years ago, an 80-kw diesel electric set cost $160,000. the cost index for this class of equipment six years ago was 187 and is now 194. the cost-capacity factor is 0.6. the plant engineering staff is considering a 120-kw unit of the same general design to power a small isolated plant. assume we want to add a precompressor, which (when isolated and estimated separately) currently costs $13291. determine the total cost of the 120-kw unit. (hint: skip $ and comma symbols)