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sdas [7]
3 years ago
14

Hoosier Corporation declared a 2-for-1 stock split to all shareholders of record on March 25 of this year. Hoosier reported curr

ent E&P of $600,000 and accumulated E&P of $3,000,000. The total fair market value of the stock distributed was $1,500,000. Barbara Bloomington owned 1,000 shares of Hoosier stock with a tax basis of $100 per share. How does stock devidend effect Hoosier's accumulated E&P at the beginning of 2010?
Business
1 answer:
BaLLatris [955]3 years ago
6 0

Answer:

Hoosier does not adjust its E&P for the stock dividend because it is not taxable to the shareholders.

Explanation:

Hoosier does not adjust its E&P for the stock dividend because it is not taxable to the shareholders. This conclusion is based on the definition of taxable dividends.

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Baker Industries’ net income is $26,000, its interest expense is $6,000, and its tax rate is 45%. Its notes payable equals $23,0
AlexFokin [52]

Answer:

ROI=10%

ROIC=0.83

Explanation:

Net Income = $26,000

Interest expense = $6,000

Tax rate = 45%

Payable = $23,000

Long-term debt = $70,000

Common equity = $260,000

1. ROE = Net Income / Common equity

= 26,000 / 260,000

=0.1

=10%

2. ROIC = EBIT * (1-Tax rate) / Invested capital

EBIT = Net Income before tax + Interest

Net Income before tax = (Net income * 100) / (100-Tax rate)

Net Income before tax = 26000 * 100 / 100-45

=2600000 / 55

Net Income before tax = 47272.72

EBIT = 47272.72 + 6,000

=53272.72

Invested Capital = Note payable + Long term debt.+ Common Equity

=23000 +70000 +260000

=$353,000

Therefore ROIC = EBIT * (1-Tax rate) / Invested capital

ROIC= 53272.72 * (1-0.45) / 353,000

=53272.72*0.55 / 353,000

=292299.996/353,000

=0.8280

=0.83

ROIC= 0.83

7 0
3 years ago
Albert, a nursing assistant, did not violate any laws when treating a patient. However, he was suspended without pay,
Tamiku [17]

Answer: violated organizational ethics

Explanation: because that makes most sense

4 0
3 years ago
Blowing Sand Company produces the Drafty model fan, which currently has a net loss of $38,000 as follows:
Dimas [21]

Answer:

I dont think anybodys going to answer this

Explanation:

8 0
2 years ago
A bookstore organizes its stock by topic. It has a mystery novel section, a romance novel section, a how-to-do-it section, a tra
ANEK [815]

Answer:

The correct answer is the second option: Item usage book cover.

Explanation:

To begin with, in the field of business management that focus specifically in the bookstores when they talk about an "item usage book cover" presentation it means that the managers decide to organize the stock by topic and that is related to the book cover and therefore to its item so that is why that they would have a mystery novel section, a romance novel section and much more of that. So every customer will understand inmediately that the bookstore is structured by the item of the book that could be easily recognize sometimes with its cover.

8 0
3 years ago
The government may pass laws to promote
Leviafan [203]

Answer:

economic strength.

Explanation:

6 0
3 years ago
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