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How do you calculate capital gain after a merger involving no cash?
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How do you calculate Non-cash Working Capital?
Inventory+AR+Prepaid expense-Current Liabilities
How do you calculate Non cash Working Capital?
Inventory+AR+Prepaid expense-Current Liabilities
How do you calculate capital gain after a merger or acquisition that involves both cash and stock?
1099B form from your broker should be showing the sales proceeds correctly. First check the surviving company's web site for instructions on how to calculate the new cost basis of the surviving entity. The rule is that your economic gain (market value of new stock plus cash received less cost basis in your original shares) is only taxable to the extent of cash received (referred to as cash to boot.) You can apply the formula: GAIN = Lesser of (CASH RECEIVED) or (Market value of NEW company's stock received plus CASH received less OLD company's cost basis) After that you have to determine, whether it is long term gain, taxed only at 15%, or ordinary income. You do that by looking at the original purchase date of the old company. If it was bought more than 12 months before the merger or acquisition, you have a capital gain. Otherwise, it is a short-term gain, taxable as ordinary income unless you have capital losses to offset it. For more information visit the Related Link.
What is the journal entry of commenced business with a cash capital?
cash a/c---dr to capital a/c
How do you calculate cash receipts?
calculating a cash receipts
How do you calculate Non-cash Working Capital?
Inventory+AR+Prepaid expense-Current Liabilities
How do you calculate Non cash Working Capital?
Inventory+AR+Prepaid expense-Current Liabilities
How do you calculate capital gain after a merger or acquisition that involves both cash and stock?
1099B form from your broker should be showing the sales proceeds correctly. First check the surviving company's web site for instructions on how to calculate the new cost basis of the surviving entity. The rule is that your economic gain (market value of new stock plus cash received less cost basis in your original shares) is only taxable to the extent of cash received (referred to as cash to boot.) You can apply the formula: GAIN = Lesser of (CASH RECEIVED) or (Market value of NEW company's stock received plus CASH received less OLD company's cost basis) After that you have to determine, whether it is long term gain, taxed only at 15%, or ordinary income. You do that by looking at the original purchase date of the old company. If it was bought more than 12 months before the merger or acquisition, you have a capital gain. Otherwise, it is a short-term gain, taxable as ordinary income unless you have capital losses to offset it. For more information visit the Related Link.
How do you calculate Exit Yield?
Exit yield is used to value at the end of a cash-flow. It gives a capital value that is expected to be an asset after cash-flow ends.
What is the difference between a financial and an operating merger?
Financial MergerA merger in which the firms involved will not be operated as a single unit and from which no operating economies are expected. The incremental post-merger cash flows are simply the expected cash flows of the target firm.Operating MergerA merger in which, operations of the firms involved are integrated, in the hope of achieving synergistic benefits. In this case forecasting future cash flows is more difficult.
How do you calculate operating working capital?
net operating capital net operating capital
What jurisdiction has the authority to hear cases involving petty cash crimes?
It is the limited jurisdiction that hears cases involving petty cash crimes.
How to calculate actual cash value?
How do you calculate the actual cash value of a home
What is the journal entry of commenced business with a cash capital?
cash a/c---dr to capital a/c
Calculate the annual cash flows of the Dakota?
calculate the annual cash flows of the Dakota
What category does Paid-in Capital fall into on the Cash flow statement?
Paid in capital is shown under cash flows from financing activities in cash flow statement.
Do you include capital in cash flow statement?
yes changes in capital is shown in cash flow from financing activities in cash flow statement.
