Answer: Paul has a taxable dividend of $15,000.
Explanation:
From the question, we are informed that ABC Corporation has E & P of $240,000 and distributes land with a fair market value of $70,000 (adjusted basis of $25,000) to its sole shareholder, Paul. We are further informed that the land is subject to a liability of $55,000.
The taxable dividend will be the difference between the fair market value of land and the liability on the land. This will be:
= $70,000 - $55,000
= $15,000
Therefore, Paul has a taxable dividend of $15,000.
C
A low GDP for two or more consecutive quarters is usually followed by economic contraction.
Answer:
Shopping products
Explanation:
Shopping products usually involves the customer doing comparison shopping as customer like to compare price, quality, offers, discounts etc. There are several websites which help the customer in comparing the products available of various brands and then buying the product. It is helpful in making smart purchase and buying the products which are worth for the money spent. It give complete analysis of product quality and price.
Answer:
D) $4,200
Explanation:
the business investigation expenses of a taxpayer who is already engaged in a similar trade or business are fully deductible in the year incurred regardless of whether or not the taxpayer goes into a new business.
Therefore, the maximum amount of deduction for the current year is
$4,200.
Answer:
E. High manufacturing cost
Explanation:
Export involves the sales of goods and services to another country. It is part of the international trade whereby goods produced in a country are sold to other countries. Just like all business activities, there are risk involved. Risk of exporting is the likelihood that there will be a loss in the sales of goods and services to another country. Various risk factors includes tariff barriers, cost of transportation and so on.
However, high manufacturing cost is not a risk of exporting. High manufacturing cost is the increase in the cost of producing and manufacturing a certain good. When this increases or rather when it's high, the prices of the products manufactured also increases. So there is no potential loss posed by high manufacturing cost.
