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velikii [3]
2 years ago
8

ABC Corporation has E & P of $240,000. It distributes land with a fair market value of $70,000 (adjusted basis of $25,000) t

o its sole shareholder, Paul. The land is subject to a liability of $55,000 that Paul assumes. Paul has: A
a. Taxable dividend of $15,000.
b. A taxable dividend of $25,000.
c. A taxable dividend of $45,000.
d. A taxable dividend of $70,000.
e. A basis in the machinery of $55,000
Business
1 answer:
stealth61 [152]2 years ago
5 0

Answer: Paul has a taxable dividend of $15,000.

Explanation:

From the question, we are informed that ABC Corporation has E & P of $240,000 and distributes land with a fair market value of $70,000 (adjusted basis of $25,000) to its sole shareholder, Paul. We are further informed that the land is subject to a liability of $55,000.

The taxable dividend will be the difference between the fair market value of land and the liability on the land. This will be:

= $70,000 - $55,000

= $15,000

Therefore, Paul has a taxable dividend of $15,000.

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The Reuschel Company began 2018 with inventory of 21,000 units at a cost of $8 per unit. During 2018, 61,000 units were purchase
PtichkaEL [24]

Answer:

1. The Cost of Goods Sold for the period ended 2018 is 682,950.

2. If FIFO method has been used, the Cost of Goods Sold would have been 660,525. Hence, LIFO method has reduced Gross Profit by 22,425 (682,950 - 660,525).

Explanation:

LIFO is one of the methods to calculate cost of goods sold. It assumes that the recently purchased stock is sold first. When a company uses LIFO method, it gets a higher cost of goods sold figure because of Inflation factor.

In the example shared, the company has opening stock of 21,000 units which were purchased at a unit price of $8. During the Year, further units were purchased but this time at a unit cost of $9.95. It is given that the Sales were of 70,500 units. Since the company uses LIFO method, it must remove the recently purchased stock from its books first. So,

61,000 * 9.95 = $606,950.

But the company sold 70,500 units. It means that 61,000 of recently purchased goods were sold and the remaining (70,500 - 61,000) from opening stock.

9,500 * 8 = $76,000. This gives us total CGS of $682,950 (606,950 + 76,000).

If you have any further queries, feel free to ask me. Thanks!

5 0
2 years ago
John's friend just gave him a pair of concert tickets to see his favorite rock group perform this weekend. Each ticket sells for
Len [333]

Answer:

$80 lost for not working

Explanation:

Opportunity cost refers to the sacrificed benefits as a result of preferring on a particular option over another. As people make choices, the forfeit one option in favor of another. Opportunity cost is the missed value of the next best alternative.

For John, he has a choice between working or going to the concert.  He has two tickets worth $50. Working would mean her twice her regular income, which is $20 per hour. If he works for four hours, his total earning will be $80. If John chooses to go to the concert, he will miss the opportunity to earn $80. The opportunity cost will be the missed $80 that he would have received from working.

6 0
3 years ago
Sometimes you find yourself getting off-task because your boss keeps piling on the work, and you aren't sure what to prioritize.
Reptile [31]

Answer:

B. ask you boss which stuff takes priority and then make a list to remember.

Explanation:

8 0
3 years ago
For many years, college costs (including tuition, fees, and room and board) increases have been higher than the inflation rate,
arsen [322]

Answer: $23,888

Explanation:

The cost today for a freshman at a public university is $19,500.

Inflation is at 7% a year and the period is 3 years from now. It is best to use a future value formula:

= Fees * ( 1 + rate) ^ number of years

= 19,500 * ( 1 + 7%)³

= 19,500 * 1.225043

= $23,888

3 0
3 years ago
Old Man Smith died owning a property with an estimated value of $500,000. He never married and died without leaving a will. Smit
vazorg [7]

Answer:

The property would be given to the next available direct relation of his who happens to be his sister. This is because, most property are shared among siblings. Since Smith's sister is one of his sibling, she is entitled to receive the property.

Explanation:

7 0
3 years ago
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