1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
According to the cost-push theory , what is responsible for inflation?
Tasya [4]
When resources are low, businesses know that they can increase their prices because people need them desperately.
6 0
2 years ago
Read 2 more answers
A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. Its profit margin and total as
kvasek [131]

A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. The profit margin and total asset turnover ratio are 13.3% each. 1.5.

There are two methods that can be used to calculate return on assets. The first method is to divide the company's net income by its average total assets. The second method is to multiply the company's net profit margin by sales.

Return on assets is calculated by dividing a company's after-tax earnings by total assets. The balance sheet total corresponds to the company's total equity and liabilities. This value can be found on the company's balance sheet.

Learn more about assets at

brainly.com/question/25746199

#SPJ4

4 0
1 year ago
g A review of Parson Corporation's accounting records found that at a volume of 146,000 units, the variable and fixed cost per u
Ganezh [65]

Answer:

The total cost is $1,796,600

Explanation:

Fixed costs are costs that do not change with the change in the volume of good or service sols, but under certain circumstances, when the fixed cost is a direct cost, it can vary on a per unit basis.

Variable costs are costs that change with the change of the volume of goods or service.

Total number of units = 138,200

variable cost per unit = $8

Total variable cost = 8 × 138,200 = 1,105,600

Fixed cost per unit = $5

Total fixed cost = 5 × 138,200 = 691,000

Total cost = 1,105,600 + 691,000 = $1,796,600

4 0
3 years ago
A select list of transactions for Anuradha's Goals follows:
umka2103 [35]

Answer:

April 1. Paid six months of rent, $4,800

Requires Deferred expense-type of adjusting entry

April 10. Received $1,200 from customer for six month service contract that began April 1.

Requires Deferred revenue-type of adjusting entry

April 15. Purchased a computer for $1,000.

Requires Deferred expense-type of adjusting entry

April 18. Purchased $300 of office supplies on account

Requires Deferred expense-type of adjusting entry

April 30. Work performed but not yet billed to customer, $500

Requires Accrued revenue-type of adjusting entry

April 30. Employees earned $600 in salaries that will be paid May 2.

Requires Accrued expenses-type of adjusting entry

7 0
3 years ago
Which type of reputation is affected by material a person posts to an online discussion forum that is accessed only by people in
liraira [26]

Answer:

professional and private

Explanation:

Reputation can be regarded as an opinion or believe about something, individual or organization, it is the judgement or the information known by people about an individual or organization. When this reputation is been accessible by a specific kind of people i.e not by the general public, it is reffered to as professional and private reputation.

It should be noted that professional and private reputation is affected by material a person posts to an online discussion forum that is accessed only by people in his or her company.

7 0
3 years ago
Other questions:
  • Milden Company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. As
    10·1 answer
  • One reason there is a need for integrated marketing communications is that​ __________.
    9·1 answer
  • Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received
    8·1 answer
  • Refer to the table above for a certain product's market in econland. if the world price of the product were $6 and an import quo
    15·1 answer
  • At the cost-minimizing combination of factors: Select one: a. the MPP of all factors will be equal b. the MFC of all factors wil
    11·1 answer
  • A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods ma
    10·1 answer
  • In the long run, an increase in the money supply will affect the price level and real GDP of an economy in which of the followin
    13·1 answer
  • Which amendment to the constitution legalized income tax?
    14·1 answer
  • Neadless Marcup, the department store, advertises from time to time that it has a hair salon where that famous stylist, Mr. Dan,
    14·1 answer
  • Can somebody help me with my assignments
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!