Answer:
B) Only statement II is correct.
- II. Has $20,000 of taxable income from Corporation Z.
Explanation:
One of the disadvantages of a C Corporation is that their owners (stockholders) are double taxed. That means that the corporation is taxed and then the stockholders are taxed depending on the dividends that they receive. In this case, Walter has $10,000 of taxable income from Corporation X (= $50,000 x 20%).
On the other hand, sole proprietorships, partnerships, limited liability companies and S Corporations are not taxed, they are pass through entities whose owners are taxed directly. In this case, Walter owns 20% of Corporation Z, therefore he must pay taxes on 20% of taxable income = $100,000 x 20% = $20,000.
Answer:
=$337.43
Explanation:
The value of each of the coins after 50 years is the future value after 50 years at their respective interest rate.
The formula for future value is FV = PV × (1+r)n
For the first coin at 5.2 percent,
Fv = 100 x ( 1 + 5.2/100 ) 50
Fv =100 x (1+ 0.052) 50
Fv = 100 x 12. 61208795
Fv = $1,261. 21
For the second coin at 5.7 percent,
Fv = 100 x (1 + 5.7 /100)50
Fv =100 x (1 + 0.057 )50
Fv = 100 x 15.98
Fv = 1, 598. 64
the difference in value will be
=$1598.64 - $1,261.21
=$337.43
Answer:
Instructions are below.
Explanation:
Giving the following information:
Fixed costs= $240,000
Unitary variable cost= $1.97
Selling price per unit= $4.97.
First, we need to calculate the break-even point in units:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 240,000 / (4.97 - 1.97)
Break-even point in units= 80,000 units
<u>The break-even point analysis provides information regarding the number of units to be sold to cover for the fixed and variable costs.</u>
If the forecasted sales are 120,000, this means that the company will cover costs and make a profit. The margin of safety is 40,000 units.
Answer:
Holding period return = 14.49%, Standard Deviation = 11.08 approx
Explanation:
Eco Scenario Dividend Stock Price HPR Prob Expected HPR
Boom 3 60 26 0.33 8.58
Normal 1.2 58 18.4 0.33 6.072
Recession 0.75 49 (0.5) 0.33 <u> (0.165)</u>
Expected HPR 14.49%
<u>Calculation Of Standard Deviation</u>
(A) (B) (A) - (B)
Given return Exp return d p 
60 50 3 26 14.49 11.51 0.33 43.718
58 50 1.2 18.4 14.49 3.91 0.33 5.045
49 50 0.75 (0.5) 14.49 14.99 0.33 <u> 74.15</u>
Total = 122.91
wherein, d = deviation
p = probability
Standard Deviation = 
= 
= 11.08
<u></u>
<u>Working Note</u>:
Holding period return = 
Boom = 
= 26%
Similarly, for normal = 
= 18.4%
Recession = 
= (0.5)%
figure in bracket indicates negative return
Answer:
--Correct Answer = $ 2,000
Explanation:
the step by step Workings can be seen below
Beginning Inventory $512,000
Add: Purchases $53,000
Less: Cost of goods Sold $48,000
Ending Inventory as per perpetual method $517,000
Less: Ending Inventory as per physical count $515,000
Shrinkage amount $2,000
