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1 year ago

If c corporations retain their after-tax earnings, when will their individual shareholders be taxed on the retained earnings?

1 answer:

4 0

When will shareholders of C businesses that retain their post-tax profits be subject to individual income tax on those retained profits. When shareholders sell their shares for a profit, they must pay taxes.

C corporations will pay tax at a corporate rate of 21% as of the 2020 tax year (down from 35 percent in 2017). Then, dividends are taxed at the owner's personal marginal tax rate, which is up to 37%. (depending on the tax bracket).

Distributions of money or other assets to shareholders will lower the corporation's earnings and profits (E&P), but they won't affect its taxable income. Taxes are paid by the corporation on its taxable income and by the shareholders on any dividends they receive.

To learn more on Retained Earning

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Robinson Manufacturing found the following information in its accounting records: $523,000 of direct materials used, $215,000 of

cupoosta [38]

Answer:

Company’s Cost of Goods Manufactured = $1,506,500

Explanation:

Use following formula to calculate cost of goods manufactured

Cost of Goods Manufacture = Direct Material cost + Direct labor cost + Manufacturing overhead + Work in process beginning balance - Work in process Ending balance

Cost of Goods Manufacture = $523,000 + $215,000 + $774,500 + $78,000 - $84,000

Cost of Goods Manufacture = $1,506,500

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3 years ago

Morrow City Inc. manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year. Wi

JulsSmile [24]

Answer:

Operating profit is projected to be $35,100

Explanation:

Morrow City International

Analysis of the Current and Projected demand to determine the Operating Profit

Particulars Current Projected Changes in

Demand Demand Demand

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Less: Cost Price $5.80 $5.80 0

Contribution $2.7 $3.45 0.75

Margin

Unit Sold <u>79,000 72,000 -7000</u>

Total $213,300 $248,400 $35,100

Contribution

Note: Total contribution = Unit sold * Contribution margin

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3 years ago

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Answer:

Explanation:

One of the problems in economics is the allocation of goods in the presence of externalities. When externalities are present allocation of goods in private market won't be efficient because private parties won't internalize them and would arrive to an inefficient outcome. For many years this was an argument in favor of government intervention.

However, Ronald Coase showed that assigning property rights of the externality to one of the private parties (no matter which one) would result in an efficient outcome. This is because the parties with the property right would then internalize the cost. Then in the bargaining process private parties would reach an efficient outcome without the intervention of the government.

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2 years ago

Derived demand is demand: Group of answer choices

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Answer:

C) linked to the production and sale of some other item.

Explanation:

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3 years ago

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Is this a question or a fact?

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3 years ago