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2 years ago

Is the sole shareholder of a corporation. for the past five years, has reported little or no taxable income as a result?

1 answer:

5 0

For the past five years, Logan has reported little to no taxable income because he paid Graham a salary of $500,000 a year.

Multiply that result by the number of shares held for each individual shareholder. Complete Appendix K, the form companies must submit to list the amount of income attributable to each shareholder for the tax year.

The gross S Corporation income (or loss) reported in Appendix E is included in the income from rentals, royalties, partnerships, S Corporations, trusts, etc. section of an individual's Form 1040.

S corporation tax rate refers to the federal, state, and local personal income taxes an S corporation must pay. S Corporation owners must pay state and local income taxes ranging from 0% to 13.3% and a maximum federal income tax of 39.6%.

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The Stationery Company purchased merchandise on account from a supplier for $9,100, terms 2/10, n/30. The Stationery Company ret

yaroslaw [1]

Answer:

$7,840

Explanation:

The terms 2/10, n/30 means that if the amount is paid in maximum 10 days, the client will receive a 2% discount. If he/she doesn't make the payment in this period, the total amount has to be paid within 30 days.

As Stationary Company returned merchandise with an invoice amount of $1,100, you have to subtract this amount from the initial value of the merchandise they purchased:

$9,100-$1,100= $8,000

Then, you have to calculate the 2% discount they will get from the $8,000 for paying the invoice within the discount period:

$8,000*2%= $160

$8,000-$160= $7,840

According to this, the answer is that the amount of cash required for the payment is $7,840.

7 0

3 years ago

Turbo Technology Corp. recently went public with an initial public offering of 3.03 million shares of stock. The underwriter use

Leokris [45]

Answer:

$8.23 per share

Explanation:

Total funds received by Turbo = (3.03 million shares x $ 7.65 per share) - $230,000

= $23,179,500 - $230,000 = $22,949,500

Gross Proceeds = Net Proceeds + Underwriter's Spread

Gross Proceeds = (Gross Proceeds * 0.07) + $7.65 per share

(Gross Proceeds – 0.07 Gross Proceeds) = $7.65 per share

Factorize gross proceeds mathematically to get

Gross Proceeds (1-0.07) = $7.65 per share

Gross Proceeds (0.93) = $7.65 per share

Gross Proceeds = $\frac{7.65}{0.93}$

Gross Proceeds = $8.23 per share

7 0

3 years ago

Turbo Corporation (a U.S.-based company) acquired merchandise on account from a foreign supplier on November 1, 2017, for 100,00

Eva8 [605]

Answer:

a. It results in a gain on foreign exchange of $1,200

b. It results in a loss on foreign exchange of $500

Explanation:

The accounting standard related to foreign exchange is IAS 21 and it requires that financial assets and liabilities in the balance sheet are recognized at the spot rate and revalued at year end using the closing rate with the difference between the amounts at transaction date and year end recognized as a gain/loss in the income statement.

Since the item was purchased on account, the inventory is not a financial asset and will thus not be revalued. However, the accounts payable will be revalued.

The entries posted on purchase would have been debit inventory and credit accounts payable.

On November 1, 2017

1 markka = $0.754

100,000 markka = $75,400

when the rate changes to $0.742,

100,000 markka = $74,200

The difference

= $75,400 - $74,200

= $1,200

There has been a reduction in the liability by this difference hence

Debit Accounts payable $1,200

Credit Foreign exchange gain $1,200

January 15, 2018 where the rate becomes $0.747,

100,000 markka = $74,700

The difference then becomes

= $74,200 - $74,700

= ($500)

This is an increase in the liability hence

Debit Foreign exchange loss $500

Credit Accounts payable $500

8 0

3 years ago

Read 2 more answers

The broadcast that reported a decline in total output for the United States probably got some of its information from the govern

Iteru [2.4K]

Answer:

The correct answer is GDP.

Explanation:

The GDP is a macroeconomic magnitude that expresses the monetary value of the production of goods and services of final demand of a country or region during a given period, usually one year or quarterly.

GDP is used as an object of macroeconomic study. Its calculation falls within the national accounts. For its estimation, several complementary approaches are used. After the relevant adjustment of the results obtained, in a partial way, the submerged economy is included in its calculation.

3 0

3 years ago

a. If the value of land in an area is increasing 10.5 percent a year, how long will it take for property values to double? (Roun

wariber [46]

Answer:

6.7 years

Explanation:

This question can be answered using Rule 70. It is a rule that it used to estimate how long it takes for an investment to double in value. In this case, the investment is land and the rate is 10.5%.

Formula for rule 70;

Time it takes for value to double = 70/rate

Time it takes for value to double = 70/10.5

Time = 6.6666

To the nearest 1 decimal place, it would take 6.7 years

3 0

3 years ago