Answer:
$527,000
Explanation:
Preparation of a CVP income statement for the quarter ended March 31, 2017.
Russell Inc.income statement for the quarter ended March 31, 2017.
Sales $2,300,000
VARIABLE EXPENSES
Cost of goods sold $940,000
Selling expenses 74,000
Administrative expenses 96,000
Total Variable Expenses 1,110,000
Contribution Margin 1,190,000
($2,300,000-$1,110,000)
FIXED EXPENSES
Cost of goods sold $464,000
Selling expenses 54,000
Administrative expenses 145,000
Total Fixed Expenses 663,000
Net Income/(Loss) $527,000
(1,190,000-663,000)
(c) dividends are federally tax exempt, but capital gains are subject to taxation.
What is dividend?
A dividend is a reward paid to the shareholders for their investment in a company's equity, and it usually originates from the company's net profits.
A dividend is also the distribution of some of a company's earnings to a class of its shareholders. Dividends are usually paid in the form of a dividend check. However, they may also be paid in additional shares of stock.
Monthly dividend stocks are securities that pay a dividend every month instead of quarterly or annually. More frequent dividend payments mean a smoother income stream for investors.
They're paid out of the earnings and profits of the corporation. Dividends can be classified either as ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates.
In order to collect dividends on a stock, you simply need to own shares in the company through a brokerage account or a retirement plan such as an IRA. When the dividends are paid, the cash will automatically be deposited into your account.
To learn more about Dividends from the given link
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Answer: Option B
Explanation: In simple words, commercial fitness facility refers to the gymnasiums an other such facility centers where individuals can go and work out for a better health and fitness. In house training refers to the knowledge that an employee gains while working for an organisation.
Employees working in such facility centers have the advantage to learn new techniques and exercises while working and getting paid. These facilities core operations relates to training their clients and making them more healthy thus they have to train their employees properly so they can handle the clients.
While doing so employee would get an in house training for the work that he or she is going to perform in the future,
<u>Solution and Explanation:</u>
a.<u>Compute Firm A’s net cash flow attributable to the asset purchase in each year.Year 2011:
</u>
Cost of Asset = ($50,000)
Tax Savings (Annual Depreciation x Tax Rate) 
= $1,099
Net Cash Flow = ($48,901)
Year 2012:
Cost of Asset = N/A
Tax Savings (Annual Depreciation x Tax Rate) (
) = $2,520
Net Cash Flow = $2,520
b. <u>Compute Firm A’s adjusted basis in the asset at the end of each year.
</u>
INITIAL COST OF ASSET = $50000
DEPRECIATION YEAR 1 = (3140)
ADJUSTED BASIS AT END OF YEAR 1 = $46860
YEAR 2 DEPRECIATION = (7200)
ADJUSTED BASIS AT END OF YEAR 2 = $39660
Answer:
$3,266
Explanation:
First we must calculate the total amount received as bond premium:
$96,140 - $92,000 = $4,140
This should be amortized over 10 periods (= 5 years x 2 semiannual payments), so we must amortize $414 per period.
The coupon that the company pays = $92,000 x 8% x 1/2 = $3,680
So the interest to be recognized is = $3,680 - $414 = $3,266
