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amid [387]
3 years ago
7

Mustard Corporation (a C corporation) owns 15% of the stock of Burgundy Corporation (a C corporation), which pays an annual divi

dend to its shareholders. Mustard is considering the purchase of additional shares of Burgundy stock. Would this stock purchase affect the amount of dividends received deduction that Mustard can claim
Business
1 answer:
irina1246 [14]3 years ago
4 0

Answer:

Yes, it will affect it.

Explanation:

The dividends received deduction (DRD) refers to a US federal tax law that allows some corporation that are paid dividend by related entities to deduct  certain percentage of the dividend received from their income tax depending on their percentage of ownership of the related entity that paid the dividend.

The three criteria or tiers that determines how much to deduct as DRD are as follows:

1. Generally, the DRD a corporation is qualified for is 70% of the dividend received.

2. A DRD equals to 80% of the dividend received can be deducted if the corporation holds more than 20% but less than 80% shareholding of the company that paid the dividend.

3. If the corporation holds more than 80% shareholding of the company that paid the dividend, a DRD of 100% of the dividend applies.

Therefore, additional stock purchase will affect the amount of dividends received deduction that Mustard can claim.

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Parkinson Company (PC) had a beginning balance of $86,000 and an ending balance of $90,000 in itslong-term marketable securities
loris [4]

Answer:

the cash inflow from the sale of securities is $7,000

Explanation:

The computation of the cash inflow from the sale of securities is shown below:

= Opening balance + purchase marketable securities + gain on the sale of marketable securities - ending balance

= $86,000 + $10,000 + $1,000 - $90,000

= $97,000 - $90,000

= $7,000

hence, the cash inflow from the sale of securities is $7,000

8 0
3 years ago
The primary horizontal load-bearing component in a floor frame is the
ivann1987 [24]
The answer is the still plate, so C. 
7 0
3 years ago
Suppose you have two credit cards. The first has a balance of $410 and a credit limit of $1,000. The second has a balance of $51
s2008m [1.1K]
Your overall credit utilization is 46 percent. This number is arrived at by adding the total amount of debt ($920) by the total amount of available credit($2000). It represents the amount you owe compared to the amount you have available to spend. While credit utilization of 46 percent will probably not adversely affect your credit score, a better score can be attained by keeping your overall credit utilization below 30 percent.
6 0
3 years ago
Read 2 more answers
Which housing option gives you more freedom and more responsibility?.
Vladimir [108]

Answer:

Owning housing option gives you more freedom and more responsibilities.

Explanation:

Owning a house has the following benefits:

• more freedom

• more responsibilities

• lower costs in long-term high appreciation value

Renting housing option factors are as

follows:

• less freedom

• less responsibilities

higher costs in long-term

• more flexibility

As per the above question,

6 0
3 years ago
3) mario's home systems has sales of $2840, costs of goods sold of $2180, inventory of $508, and accounts receivable of $432. ho
Novay_Z [31]

84.84 days take Mario's to sell its inventory.

<h3>What is meant by Inventory?</h3>

All the goods, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory.

The products and materials that a company keeps on hand with the intention of reselling, producing, or using them are referred to as inventory or stock. The main focus of inventory management is determining the location and shape of stocked commodities.

Data given in the question:

Sales = $2,880

costs of goods sold = $2,220

Inventory = $51

Accounts receivable = $436

Now,

Time taken to sell inventory = 365 ÷ ( Inventory Turnover Ratio )

also,

Inventory Turnover Ratio = [ Cost of goods sold ] ÷ [ Average inventory ]

= $2,220 ÷ $516

= 4.3023

Therefore,

Time taken to sell inventory = 365 ÷ 4.3023

= 84.84 days

To learn more about Inventory refer to:

brainly.com/question/24868116

#SPJ4

6 0
2 years ago
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