Accounting question

Beth purchased 40% of Cerise Corporation for $350,000 six years ago. In the current year, Cerise consolidates with Pink Corporation, and Beth receives 10% of Cerise-Pink stock valued at $500,000 and a $200,000 bond. At the time of the transaction, Cerise held E & P of $600,000 and Pink's E & P was $1.2 million. How should Beth treat this transaction for income tax purposes? What is Beth's basis in her Cerise-Pink stock?

Accounting question

Accounting question

Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $330,200 for the year, and machine usage is estimated at 127,000 hours. For the year, $347,760 of overhead costs are incurred and 131,700 hours are used.

Manufacturing overhead rate $ per machine hour

Accounting question