Parent corporation owns 100% of the single class of stock of subsidiary corporation. parent's basis in the subsidiary stock is $500,000 when parent completely liquidates subsidiary corporation within a single tax year. the subsidiary corporation assets have a $700,000 adjusted basis and an $800,000 fmv at liquidation. as a result of the liquidation, parent must recognize a
a) $300,000 gain.
b) $0 gain.
c) $200,000 gain.
d) none of the above1.

Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.

Why is investing in a mutual fund less risky than investing in a particular company’s stock?

Consider two similar industries, portal crane manufacturing (pcm) and forklift manufacturing (flm). the pcm industry has exactly three incumbents with annual sales of $800 million, $200 million and $100 million, respectively. the flm industry has also exactly three incumbents, with annual sales of $500 million, $450 million and $400 million, respectively. which industry is more likely to experience a higher level of rivalry?