If Frederick's preferential tax rate on adjusted capital gain is 15%, his tax attributable to the above sales is $2,850 .
As per the given question :
Frederick is a single individual sold some of his assets this year assets
Gamma incorporated tax basis is $5,000 and sale price is $15,000
Land incorporated tax basis is $75,000 and sale price is $100,000
Down corporation tax basis is $12,000 and sale price is $ 8,000
Extel incorporated tax basis is $17,000 and sale price is $5,000
now,
we have to calculate the tax on each asset
tax on each asset is (sale price - tax basis)*15%
so, tax on Gamma Incorporated is
(sale price - tax basis) * 15%
( 15,000 - 5,000) * 15 / 100
=> $1500
tax on Land incorporated is
(sale price - tax basis)*15%
( 100,000 - 75000)*15 / 100
=> $3,750
tax on Down corporation is
(sale price - tax basis) * 15%
( 8000 - 12000) *15 /100
=> $600
tax on Extel incorporated is
( sale price - tax basis ) * 15%
(17000 - 5000) * 15 / 100
=> $1800
Gamma incorporated tax $ 1500
Land incorporated tax $ 3750
Down corporation tax $ (-600)
Extel incorporated tax $ ( -1800)
the total tax of all assets are = 1500+3750+(-600)+(-1800)
=> $2850
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Disney spends millions of dollars each year promoting their brand and they enjoy the value....
positive perception...
This demonstrates the idea of brand _________
equity
Disney spends millions of dollars each year promoting their brand and they enjoy the value.... positive perception...This demonstrates the idea of brand equity
When compared to a generic alternative, a corporation can command a higher price for a product with a well-known brand. This is known as brand equity. Making items unique, instantly recognizable, superior in quality, and dependable helps businesses build brand equity for their goods. Campaigns for mass marketing can aid in building brand equity.
The experiences a customer has with the brand contribute to the development and growth of brand equity. The procedure often incorporates the natural link between that customer or consumer
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How would you expect velocity to typically behave over the course of the business cycle?
Since nominal GDP falls during recessions, and as a result expansionary monetary policy, which
increases the money supply is implemented, in most cases velocity will decline during recessions.
During expansions, the money supply will be less expansionary, and nominal GDP will rise,
typically leading to an increase in velocity.
Velocity increases during expansion and decreases during contraction. Volatile according to business cycle.
Business cycles are a type of fluctuation found in the aggregate economic activity of a nation -- a cycle that consists of expansions occurring at about the same time in many economic activities, followed by similarly general contractions (recessions). This sequence of changes is recurrent but not periodic. The business cycle is an example of an economic cycle. Business cycles are comprised of concerted cyclical upswings and downswings in the broad measures of economic activity—output, employment, income, and sales.
The alternating phases of the business cycle are expansions and contractions (also called recessions). Recessions often start at the peak of the business cycle—when an expansion ends—and end at the trough of the business cycle, when the next expansion begins. The severity of a recession is measured by the three D’s: depth, diffusion, and duration, and the strength of an expansion by how pronounced, pervasive, and persistent it is.
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in a ______ distribution center, merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours.
In a Cross Docking distribution center, merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours.
table: average income and distribution of income data provides recent data from the world bank on average income and the distribution of income in four countries.
The top quintile in Sri Lanka (D) has the highest average income.
Based on the table provided, we have some informations related to the dsitribution of income and average of income, such:
Bangladesh Uganda Sri Lanka Mongolia
Average household income $1,000 $1,000 $3,000 $3,000
in the nations
Percent of total income 41.4% 49.8% 47.6% 40.6%
earned in the top quintile
To find the country with the highest top quintile average income, we have to find each country's average income earned by the top quintile.
Average income earner by the top quintile = %of total income earned in the top quintile x average household income in the nations
Hence, we can find that:
Bangladesh Uganda Sri Lanka Mongolia
Average household income $1,000 $1,000 $3,000 $3,000
in the nations
Percent of total income 41.4% 49.8% 47.6% 40.6%
earned in the top quintile
Average income earned $414 $498 $1,4428 $1,218
by the top quintile
Our results show that Sri Lanka's top quintile earned the highes average income compare to other countries.
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Complete Question:
Table: Average Income and Distribution of Income Data provides recent data from the World Bank on average income and distribution of income in four countries.
(Please refer to the table attached below)
Based on the data in the table, those in the top quintile have the highest average income in which country?
UgandaMongoliaBangladeshSri Lankaunder the uniform securities act, all of the following transactions are exempt except the sale of corporate bonds to a(n):
Under the Uniform Securities Act, all of the following transactions are exempt except the sale of corporate bonds to a Federal covered securities must be registered with the states.
The Uniform Securities Act is a model law which was created as a starting point for the state-level securities regulation. So, the purpose of the Uniform Securities Act is in order to deal with securities fraud at the state level.
However, under this Act, all of the transactions are exempt except the sale of corporate bonds. Thus, a corporate bond is considered as a type of debt security which is issued by a firm and then sold to the investors.
Hence, the corporate bonds are debt securities.
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Wes’s at-risk amount in a passive activity is $25,000 at the beginning of the current year. His current loss from the activity is $35,000 and he has no passive activity income. At the end of the current year, which of the following statements is incorrect?
a. Wes has a loss of $25,000 suspended under the passive loss rules.
b. Wes has an at-risk amount in the activity of $0.
c. Wes has a loss of $10,000 suspended under the at-risk rules.
d. Wes has a loss of $35,000 suspended under the passive loss rules.
e. None of the above is incorrect.
ANSWER: d
RATIONALE:
The at-risk amount of $25,000 is reduced to zero by $25,000 of the passive loss. As a result, the $10,000 unused loss is suspended under the at-risk rules. The $25,000 of passive loss is suspended under the passive loss rules because Wes has no passive income.
At the end of the current year, Wes has a loss of $35,000 suspended under the passive loss rules. Hence, option D is incorrect.
What is passive activity income and passive loss in this instance?Income from a passive activity, or an activity in which the taxpayer engages in a rental activity subject to specific exceptions, is known as passive activity income. Earnings from a rental property, limited partnership, and other business in which a person is not actively involved are considered passive income. Passive income is often taxable, just like active income, but the Internal Revenue Service frequently treats it differently.
In the given question it is given that the passive loss of $25,000 lowers the at-risk sum of $25,000 to zero. The $10,000 unused loss is therefore suspended in accordance with the at-risk regulations. Because Wes has no passive income, the $25,000 of passive loss is suspended in accordance with the passive loss regulations.
So, here all of the options are seem to be correct. Therefore, option D is incorrect.
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in x1, adam and jason formed abc, llc, a car dealership in kansas city. in x2, adam and jason realized they needed an advertising expert to assist in their business. thus, the two members offered cory, a marketing expert, a 1/3 capital interest in their partnership for contributing his expert services. cory agreed to this arrangement and received his capital interest in x2. if the value of the llc's capital equals $180,000 when cory receives his 1/3 capital interest, which of the following tax consequences does not occur in x2?
Cory accepted this deal and received his ownership stake in x2 as a result. If when Cory receives the money, the llc's capital is worth $180,000.
How an LLC possess capital or equity?A membership interest is what you possess in an LLC as opposed to granting stock options like you would in a corporation. In an LLC where you are the only member, you own all of the equity. However, if your LLC has more than one member, equity will be allocated to the members in accordance with the terms of your operating agreement.
How an LLC may raise money?For business owners looking to obtain funds but who do not want investor pressure to produce returns on their investments and have a solid exit strategy, LLCs are probably the best option.
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Blossom Company's comparative balance sheets are presented below. Blossom Company Comparative Balance Sheets December 31 2019 Cash $14,500 Accounts receivable 21,300 Land 20,300 Buildings 69,800 Accumulated depreciation-buildings (15,000) Total $110,900 2013 $ 10,400 23,900 25,700 69,800 (10,200) $119,600 Accounts payable Common stock Retained earnings Total $ 12,500 75,400 23,000 $110,900 $ 28,300 71,500 19,800 $119,600 Additional information: 1. Net Income was $22,300. Dividends declared and paid were $19,100. 2. No noncash investing and financing activities occurred during 2020. 3. The land was sold for cash of $4,600. Your answer is partially correct. Try again. Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease 322,300 Blossom Company Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities
Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities
Depreciation Expense $4800 Decrease in Accounts Receivable Decrease in Accounts Payable 2600 115800 Loss on Disposal of Piant Assets Net Cash Provided by Operating Activities
Blossom Company's comparative balance sheets,Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities is $10,400.
In financial accounting, a balance sheet (also renowned as a statement of monetary position or statement of financial condition) may be an outline of the financial balances of a private or organization, whether or not it's a sole proprietorship, a business partnership, a corporation, private restricted company or different organization resembling government or not-for-profit entity.
Assets, liabilities, and ownership equity are listed as of a selected date, such as the top of its financial year. A record is usually represented as a "snapshot of a company's financial condition". Of the four basic financial statements, the balance sheet is the sole statement that applies to one purpose at the time of a business's calendar year.
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If you wish to improve downstream processes, i.e. distribution channel and demand management, you need to primarily work with ( ) to identify areas of opportunity. (Refer to Chapter 12)
A. C-level management.
B. Marketing and sales managers
C. Purchasing managers
D. Government officialsMarketing and Sales Managers
Working primarily with marketing and sales managers is necessary if you want to improve downstream processes, such as distribution channel and demand management.
The term "downstream processing" (DSP) refers to the series of procedures needed to create a pure and homogenous protein product from biological materials such as cells, tissue culture fluid, or plant tissues. DSP is a multistep method that steadily improves the purity of the target by utilizing the physical and chemical characteristics that set it apart from contaminants since the product is originally trapped in a biological matrix with a broad and diverse variety of nontarget molecules. In DSP, bulk pollutants including particles, carbohydrates, and oils are removed by harvesting and clarity procedures, and then the feed stream is refined through capturing and polishing steps, leaving only the target product behind.
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MPC of 0.8, decreasing taxes by 100 units causes the IS curve to shift to the_____by_____ units.
a. right; 400
b. right; 500
c. left; 400
d. left; 500
MPC of 0.8, decreasing taxes by 100 units causes the IS curve to shift to the right by 400 units.
The marginal propensity to consume is a measure of induced consumption, which is the idea that an increase in disposable income leads to an increase in personal consumer spending. The propensity to consume is the percentage of disposable income that people spend on consumption.
Tax multiplier = MPC / (1 - MPC) =
Tax Multiplier = 0.80 / (1 - 0.80)
Tax Multiplier = 0.80 / 0.20 = 4.
Change in Total Demand or Production = Change in taxes * multiplier
Change in Total Demand = 100*4 = 400.
A reduction in taxes boosts overall demand. So a 100 percent tax cut will result in a 400 percent increase in output.
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company zeta is a company that hires employees based on their ability to fit into the ten core values of the company. there is a team dedicated to setting up fun events, lunches and programs. employee team building is stimulated through the group cleaning of communal spaces and random group lunches with employees from different teams within the company. these strategies are an example of addressing which of the following?
In a case whereby company zeta which is is a company that hires employees based on their ability to fit into the ten core values of the company, these strategies are an example of addressing Organizational culture.
What is organizational culture?Organizational culture can be described as the one which is generally understood as all of a company's beliefs, as well as the values and attitudes, and how these influence the behaviour of its employees.
It shpould be noted that the Culture do affects how people experience an organization and this can be seen in the for a customer to buy from a company or a supplier to work with it, hence this can be attributed to the the structure of an organization which could be non-profit and the values, of that organization.
Therefore, option C is coprrect.
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missing options:
a.Organizational structure
b.Organizational controls
c.Organizational culture
d.Organizational architecture
e.Organizational processes
Please analyze the economic impact of the 3D printing technology on the economy. Discuss the major benefits of using 3D printing and costs associated with it.
The impact of 3D printing is largely felt in the reduction of production costs for machine parts such as jigs and fixtures
Economic Impact of 3D printingBy reducing the number of parts used, streamlining the creation of complex geometries, and even lightweight products to lower their weight and improve worker ergonomics. 3D printing significantly lowers the cost of jigs and fixtures.
The main impact of 3D printing is speed, flexibility, and cost savings.
Rapid iteration speeds up the development process and lowers the cost of making prototypes.
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Index put options are used to provide protection against the value of the portfolio falling below a certain level. Which of the following is true as the beta of the portfolio increases?
A. The cost of hedging increases
B. The options require a lower strike price
C. The number of options required increases
D. All of the above
D. All of the above
A financial portfolio is what, exactly?A portfolio is a collection of financial investments such as stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange-traded funds (ETFs). Most people think that the foundation of a portfolio is made up of stocks, bonds, and cash. Even though it happens frequently, this does not have to be the case all the time. Real estate, fine art, and private investments are just a few of the diverse assets that can be included in a portfolio.
How Can Risk in a Portfolio Be Calculate?The variance or standard deviation of a portfolio's returns is frequently used as a proxy for the risk level of the entire portfolio. The calculation of the standard deviation must take into consideration both the weighted average of the standard deviations of each asset
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Which of the following contributed to the large increases in the public debt during the Great Recession?
The following contributed to the large increases in the public debt during the Great Recessionmultiplied authorities spending2. GDP tiers decreased3. federal tax sales fell.
One of the maximum seen elements of the recession, process losses and unemployment are recognised to be related to multiplied stress, poorer fitness outcomes, declines in kid's instructional fulfillment and academic attainment, delays in age of marriage, and modifications in family structure.Likewise, whilst the economic system is in recession, human beings's earning regularly fall, this means that they'll mechanically pay a decrease tax rate.
And considering that there are greater human beings unemployed, there are fewer human beings paying the earnings tax. During a recession, the authorities might also additionally decrease tax quotes or growth spending to inspire call for and spur monetary activity. Conversely, to fight inflation, it can boost quotes or reduce spending to calm down the economic system.
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[Blank}] is defined as a process that begins when one party perceives another party has or is about to negatively affect something the first party cares about.
A) Problem solving
B) Assessment
C) Conflict
D) Negotiation
E) Collective bargaining
A conflict is defined as a process that begins when one party perceives another party has or is about to negatively affect something the first party cares about. Therefore, the option C holds true.
A conflict can be referred to or considered as the situation that develops between two or more parties as a way of expressions of contracting ideologies. These ideologies are also different for each party in the way that they are being interpreted. A conflict may also arise out of completely strange or unknown situations.
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renee works as a respected senior engineer for a large manufacturer of pharmaceutical process equipment. several researchers within the company have discovered an innovative way to repackage pharmaceutical drugs. the company has given renee the opportunity and responsibility to lead a fully funded project team for 12 months to develop this idea. she is excited to lead this team.
Renee works as a respected senior engineer for a large manufacturer of pharmaceutical process equipment. The company has allowed Renee to lead a fully funded project team for 12 months to develop this idea. She is excited to lead this skunk work team.
Skunk work is used as a term to define a group or team in organizations having a high level of autonomy. This autonomy is not affected by bureaucracy as the team works on secret projects or advanced levels of projects. Skunk work is widely used in technical, engineering, and science fields.
Renee is a senior engineer who will work with the team on innovative ways to repackage pharmaceutical drugs. The team is specifically aware of their target but it is not disclosed explicitly as to which innovative way they will work. Therefore, it is a skunk work team.
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Payton Industries has fixed costs of $490,000, the unit selling price is $35, and the unit variable costs are $20. What is the break-even sales (units) if fixed costs are reduced by $40,000?
a. 32,667 units.
b. 14,000 units.
c. 24,500 units.
d. 30,000 units.
32,667 units is the break-even sales (units) if fixed costs are reduced by $40,000 .
The Break- even point is calculated by,
Break-even point = Fixed cost / Sales per unit - Variable per unit
Break-even point = 49000 / 35 -20
= 49000/15
= 32,667
Hence the Break- even point in sales is 32,667 units .
The break-even point (break-even price) for a transaction or investment can be calculated by comparing the market price of the investment to its beginning price. When the two prices are equal, the breakeven point has been reached. Divide the total fixed costs of production by the revenue per unit less the variable costs per unit to arrive at the staff accountant's definition of the break-even point.
Fixed costs in this context are expenses that remain constant regardless of the number of units sold. The break-even point is the level of production where total sales for a product equal entire expenses.
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states give powers to corporations through state incorporation statutes and through each corporation's articles of____
States give powers to corporations through state incorporation statutes and through each corporation's articles of incorporation.
Articles of incorporation, also known as a certification of formation or charter, are a series of papers submitted to a government agency in order to formally record the formation of a corporation.
General information about the corporation, such as the company name and location, is contained in these legal documents.
The bylaws of a corporation, which define its rules and regulations and assist define the responsibilities of its directors and officials, are frequently confused with the articles of incorporation.
The articles of incorporation and the bylaws together constitute the foundation of the company's legal structure. The importance of articles of incorporation lies in the fact that they create a company inside its home state and inform the state of critical elements of the enterprise.
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which of the following characteristics of not-for-profit organizations (nfps) can be used to distinguish a nongovernmental from a governmental nfp?
A nongovernmental not-for-profit organization (NFP) can be distinguished from a governmental NFP by its capacity to impose taxes on its members.
You can see that NGOs and nonprofit organizations have a lot of characteristics. The fundamental distinction between the two groups which share the same goals of serving the public and fostering constructive social change is that non-governmental organizations are global in scope.
A non-governmental organization is referred to as an NGO. With the founding of the United Nations in 1945, the phrase and business type were developed. Despite not being a part of the government, as its name suggests, the group nonetheless contributes to humanitarian aid and social reform advocacy.
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interns from a local college frequently work at your company. some interns work with the database developers, some interns work with the web application developers, and some interns work with both developers. interns working with the database developers require specific privileges, and interns working with the web application developers require different privileges. which of the following is the simplest method to meet these requirements?
The most straightforward way to fulfill these requirements is to use group-based rights.
How does a group right appear?A group right is a privilege that the entire group may exercise rather than just one particular member. A person's right, on the other hand, is one that they claim exclusively for themselves. One example of a commonly mentioned collective right is the right of a nation or people to self-determination.
How important are collective rights?These individual rights, which are exercised collectively (as a social practice) and exclusively, ensure that every member of a specific community has the freedom to act (worship, socialize, and express themselves culturally) without interference from outsiders (by members of a particular group only).
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the expatriate managers of vivant, an italian leader in women's apparel, followed the same domestic marketing and management practices in foreign markets as their colleagues did in france. as a result, vivant's international expansion failed because the company suffers from
Vivant's international expansion failed because the company suffers from cultural myopia
The failure to recognize how members of different Cultural behave normally in the context of their own culture is known as cultural myopia.
In other words, those who have cultural myopia make assumptions about
others' cultures based solely on their own.
An illustration of this would be a Portuguese woman making fun of a Scottish male she sees wearing a kilt. Kilts appear like women's clothes from her cultural standpoint.
In the given question,
The international managers of vivant, a leader in women's clothing from Italy, used the same management and marketing techniques abroad
They did in France. vivant's attempt to expand internationally was unsuccessful because for cultural myopia
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A researcher can develop research questions for a project based on previous academic research. The previous research used (and sometimes the research questions themselves) would go into a literature review. True False
The previous research used (and sometimes the research questions themselves) would go into a literature review is a true statement.
As is common knowledge, a literature review also includes the theories, guiding principles, and other materials from earlier academic studies. The stated assertion is true as a result. A literature review for a thesis may aim to address numerous questions, as opposed to a literature review for publication, which frequently aims to address just one research issue.
When writing the Introduction, you should first include background information and a summary of the body of previous research. The research question is usually presented after this. Consequently, the research question is usually added at the conclusion of the Introduction section.
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you provide desktop support for a small company. the company has two locations in the same city, but they are several miles away. you get a call from an employee who is having problems with an application. he tries to describe what he is doing in the application, but you just can't understand what might be causing the problem. which of the following is the best way to provide the assistance the employee needs? (select two.)
To describe what he is doing in the application, but you just can't understand what might be causing the problem. The best option would be to access the computer remotely. This allows you to remotely view the computer and control it from anywhere due to remote work.
The remote work or work from home office that performs best time saving and giving fast services from anywhere through the help of internet.
The company has two locations in the same city, but they are several miles away. You get a call from an employee who is having problems with an application. To save the distance miles and giving fast service to access the computer remotely.
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ape company reported net income of $298,000 during 2021 and paid dividends of $26,000 on common stock. it also has 10,000 shares of 6%, $100 par value cumulative preferred stock outstanding. common stockholders' equity was $1,200,000 on january 1, 2021, and $1,600,000 on december 31, 2021. the company's return on common stockholders' equity for 2021 is .
In 2021, the ape company recorded net profits of $298,000 and dividend payments to $26,000 on common shares. 10,000 shares of the company's cumulative preferred stock, with a $100 par value, are also in circulation. Equity held by common stockholders was $1,200,000 in January 1 and $1,600,000 by December 31, 2021. The business's 2021 return on its common stockholders' equity is 17.0%.
Whose equity is it, anyway?After all liabilities have indeed been paid, a company's residual assets are referred to as its stockholders' equity. This amount is computed by deducting term debt from total assets, or alternatively, by adding share capital and reserves and surplus and deducting treasury stock.
Which four principal stockholder equity accounts are there?The calculation of stockholders' equity is made up of four factors are shares in circulation, additional paid-in capital, profits, and treasury stock. A firm has sufficient assets to cover its liabilities when stockholders' equity is positive; otherwise, it has more liabilities than assets.
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money, inc., a calendar year s corporation in denton, texas, has two unrelated shareholders, each owning 50% of the stock. both shareholders record a $400,000 stock basis as of january 1. at the beginning of the tax year, money reports balances in aaa of $300,000 and aep of $600,000. during the year, money generates operating income of $100,000. at the end of the year, money distributes securities worth $1,000,000, with an adjusted basis of $800,000.
Shareholder basis would then reduce by non-taxable portion of distribution to $250,000 each. If the amount is distributed then each shareholder would have dividend income of $200,000
Since the AAA account is at the company level, it may have a negative balance. It would be reasonable to suppose that in this situation, distributions would come first from the AAA account, then from the current E&P, and last from the shareholder's equity basis.
M would recognize gain of $200,000 ($1,000,000-$800,000) for securities distributed which would increase AAA by $200,000 which would flow to each shareholder and thus increase their basis by $100,000 as they own 50% share in S corporation.
Operating income of $100,000 would increase AAA by $100,000 and the operating incore would flow to each shareholder and increase their stock basis by $50,000.
Before the securities are distributed AAA would be $600,000 ($300,000+ $100,000+ $200,000). The amount of $1 million distributed would be treated as first from AAA to extent of $600,000 and further $400,000 from AEP.
AAA balance would reduce to 0 and AEP balance would reduce to $200,000 ($600,000 - $400,000).
Each shareholder basis before distribution would be $550,000 ($400,000+ $100,000+ $50,000). Shareholder basis would then reduce by non-taxable portion of distribution to $250,000 each. If the amount is distributed then each shareholder would have dividend income of $200,000.
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TRUE/FALSE. It is impossible to run a company effectively without the ability to read and understand basic accounting reports and financial statements (T or F)
"It is impossible to run a company effectively without the ability to read and understand basic accounting reports and financial statements" This statement is True.
financial statements are written facts that convey the commercial enterprise activities and the financial overall performance of a enterprise. monetary statements are frequently audited with the aid of government companies, accountants, companies, and so forth. to make certain accuracy and for tax, financing, or investing functions. economic statements are formal facts of the economic sports and role of a business, person, or different entity. relevant monetary statistics is presented in a based manner and in a form which is easy to apprehend.
profits are the profit a company has earned for a time period, commonly 1 / 4 or economic yr. The profits figure is indexed as net profits on the earnings statement. while investors check with a business enterprise's income, they're normally regarding internet profits or the earnings for the period.
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On the oligopoly graph it always makes good commonsense for a firm to lower their price below the kink in order to beat their competitors and to increase profits.
True
False
On the oligopoly graph it always makes good commonsense for a firm to lower their price below the kink in order to beat their competitors and to increase profits. FALSE
An oligopoly is a marketplace shape in which a market or industry is dominated by way of a small wide variety of big sellers or manufacturers. Oligopolies regularly end result from the desire to maximize earnings, that could cause collusion between corporations.
An oligopoly is a market characterized by means of a small number of firms who recognize they're interdependent of their pricing and output policies. The variety of companies is small enough to present every firm some market electricity.
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Terrell Trucking Company is in the process of setting its target capital structure. The CFO believes that the optimal debt-to-capital ratio is somewhere between 20% and 50%, and her staff has compiled the following projections for EPS and the stock price at various debt levels: $$ \begin{matrix} \text{Debt/Capital Ratio} & \text{Projected EPS} & \text{Projected Stock Price}\\ \text{20\\%} & \text{\$ 3.10} & \text{\$ 34.25}\\ \text{30} & \text{3.55} & \text{36.00}\\ \text{40} & \text{3.70} & \text{35.50}\\ \text{50} & \text{3.55} & \text{34.00}\\ \end{matrix} $$ Assuming that the firm uses only debt and common equity, what is Terrell’s optimal capital structure? At what debt-to-capital ratio is the company’s WACC minimized?
The ratio of a bank's capital to its risk is known as the capital adequacy ratio (CAR), sometimes known as the capital to risk (weighted) assets ratio (CRAR)[1]. To make sure a bank can take a reasonable level
of loss and conforms with statutory capital requirements, national regulators monitor its CAR. It serves as a gauge for bank capital. In terms of a bank's risk-weighted credit exposures, it is expressed as a percentage. The goal of enforcing this ratio's mandated levels is to safeguard depositors and advance global financial systems' efficiency and stability. Layer one capital, which can withstand losses without requiring a bank to stop operating, and tier two capital, which can withstand losses in the event of
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if kevin's children run a lemonade stand for a day and sell 200 glasses of lemonade at $0.50 each, their total revenues are
If kevin's children run a lemonade stand for a day and sell 200 glasses of lemonade at $0.50 each, their total revenues are $100.
What is the total revenue?The total revenue is the total amount of income generates through the sale of goods or services associated with its core business activity. Because it appears at the top of the income statement, revenue, which is also known as gross sales, is frequently referred to as the "top line." A company's overall earnings or profit are referred to as income, or net income.
So, the revenue of the lemonade stand can be calculate by multiplying total sell to the price of lemonade
revenue = 200 glasses x $0.5 = $100
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Why is it important to know the cost of the financial services you use?
Answer:
Explanation:
The cost of the financial services we use are important because it helps the business to grow , it promotes entrepreneurship , it promotes free and easy trade , it ensures availability of money in the economy , it ensures easy availability of loans and capitals and it promotes infrastructure development.