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Katarina [22]
3 years ago
5

Matulis, Inc., a calendar year C corporation, owns a single asset with a basis of $325,000 and a fair market value of $800,000.

Matulis holds a positive E & P balance. The entity elects S corporation status for 2020 and then sells the asset. Compute the corporate-level bt1ilt-in gains tax that mt1st be paid by Matulis.
Business
1 answer:
Talja [164]3 years ago
3 0

Answer:

$99,750

Explanation:

Matulis's taxes are = (asset's fair market value - asset's basis) x corporate tax rate = ($800,000 - $325,000) x 21% = $475,000 x 21% = $99,750

Since the C corporation is turning into a S corporation it must recognize the gain on holding the asset. The Tax Cuts and Jobs Act set the corporate tax rate at 21%.

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Based on the article, As Middle Class Shrinks, P&G Aims High & Low, identify the environmental forces from among the six
Vladimir [108]

Answer:

All the above.

Explanation:

  • Based on the articles the middle-class shrinks P&G high and low are identified by the environmental factors that may impact the development of the firm in the market.

a) Social : The Social factor in the external environment of the form will be related to the firm showing the product whether it's accepted by the society at large.

b) Cultural : This aspect will focus on the moral and ethical principles of the company wants to portray.

c) Demographic : Factors related to the people and their age structures as they are customers users of the products.

d) Economic : In terms of the revenue maximization and profit motive should target with the appropriate amount.

e) Competitive : As the markets are highly competitive the demand for the product and the market values will be dependent on the company position of the product.

f) Technological has a larger and integrated role to play.

5 0
3 years ago
Pontchartrain Company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid on June 30 and De
solmaris [256]

Answer:

$1,568,498

Explanation:

First calculate the Amont of discount

Discount on the bond = Face value - Proceeds from the bond = $20,000,000 - $19,604,145 = $395,855  

Now prepare the bond amortization

The Bond Amortization schedule is attached with this answer, please find it.

Now calculate the interest expense for 2017

Interest Expense 2017 = $784,165.80  + $784,332.43

Interest Expense 2017 = $1,568,498.23

Interest Expense 2017 = $1,568,498

3 0
3 years ago
Net working capital increases when: Multiple Choice inventory is sold at cost. fixed assets are purchased for cash. inventory is
sashaice [31]

Answer:

d. inventory is sold at a profit

Explanation:

Net working capital increases when <u>inventory is sold at a profit</u>

Net working capital = Current Assets - Current Liabilities . Cash, Inventory and receivables are part of current assets

Hence, when inventory is sold at profit, cash received is more than decrease in inventory and hence, current asset increase and hence, working capital increases. When it is sold at cost, it remains the same. Purchase of inventory on credit will lead to same amount increase in current assets and current liabilities. Payment by customer will lead to increase in cash and decrease in accounts receivable, Hence, no impact

6 0
2 years ago
Assume that ABC had a retained earnings balance of $10,000 on April 1, and that the company had the following transactions durin
Lostsunrise [7]

Answer:

ABC's retained earnings balance at the end of April is $11,400

Explanation:

The addition to retained earnings in the current month is revenue derived from providing services to customers minus the expenses such as rent and employee salaries

Net income for the month=$2,000+$900-$800-$700=$1400

Retained earnings at month end=opening retained earnings+net income

Retained earnings at month end=$10,000+$1,400=$11,400

8 0
3 years ago
Bailey broker sponsors two sales agents: Jon and Jen. Horace has signed a buyer representation agreement with Bailey to have Bai
laila [671]

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A man or woman agent is one that has passed through considered necessary schooling, exceeded an exam, and been duly certified by IRDA to promote coverage policies to the general public and offer after-income providers along with helping on the time of a declaration. His license may be for life insurance, general insurance, or each.

182. 'Agent' and 'essential' are described. An 'agent' is a person hired to do any act for every other or to symbolize some other in dealings with 0.33 person. The person for whom such act is done, or who's so represented, is referred to as the 'fundamental'.

Standard Agent- Agent appointed to do all acts referring to a selected job. Sub-Agent-An agent appointed by way of an agent. Co-Agent- sellers together appointed to do an act together. Dealer- An agent whose process is to create a contractual date between two events.

Learn more about the kind of agents here brainly.com/question/7284696

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8 0
2 years ago
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