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olga_2 [115]
3 years ago
13

Darryl, a cash basis taxpayer, gave 1,000 shares of Copper Company common stock to his daughter on September 29, 2019. Copper Co

mpany is a publicly held company that has declared a $2.00 per share dividend on September 30th every year for the last 20 years. Just as Darryl had expected, Copper Company declared a $2.00 per share dividend on September 30th, payable on October 15th, to stockholders of record as of October 10th. The daughter received the $2,000 dividend on October 18, 2019. a. The daughter must recognize the income because she owned the stock when the dividend was declared and she received the $2,000. b. Darryl must recognize the $2,000 dividend as his income because he constructively received the dividend. c. Darryl must recognize $1,500 of the dividend because he owned the stock for three-fourths of the year. d. Darryl must recognize the income of $2,000 because the purpose of the gift was to avoid taxes. e. None of these choices are correct.
Business
1 answer:
KiRa [710]3 years ago
8 0

Answer:

Correct option :a. The daughter must recognize the income because she owned the stock when the dividend was declared and she received the $2,000.

Explanation:

Based on the information given we were told Darryl gave 1,000 shares of stock to his daughter in the month of September 29, 2019 in which Darryl daughter also received the amount of $2,000 dividend on October 18 of the same year which means that Darryl daughter have to recognize the income reason been that the daughter owned the common stock when the dividend was been declared and she as well received the amount of $2,000.

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For each of the following types of indirect expenses and service department expenses, identify one allocation basis that could b
hodyreva [135]

Answer: (A) Computer service expenses of production scheduling for operating departments

Explanation:

 The computer services expenses of the production scheduling is one of the type of indirect expenses and also the type of service department expenses type in the operating department.

 The indirect expenses is one of the type of expenses that cannot be directly contribute with the cost object or services in the business department expenses.

 According to the given question, the computer service expenses is one of the allocation basis that is used as the indirect expenses in an organization or firm and the indirect expenses are categorized into two main parts that is:

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Therefore Option (A) is correct answer.          

5 0
3 years ago
According to liquidity preference theory, money supply and money demand are balanced by adjustments of
givi [52]

Answer:

Nominal Interest rate

Explanation:

According to liquidity preference theory, money supply and money demand are balanced by adjustments of Nominal Interest rate. Suppose you have some money, you will decide to either keep it in cash or in the bank. If you keep the money in cash, the opportunity cost of keeping in cash is the interest rate earned if you would have kept the money in the bank. Bank offers the nominal interest rates and not the real interest rates. Bank rates are not adjusted for inflation. So if the interest rate on money increases the opportunity cost of holding money in cash increases. If money supply in the economy increases the demand for money will increase only by reducing the interest rate because then only people fir hold cash and demand higher money.  So, money supply and money demand are balanced by adjustments of the Nominal Interest rate.

5 0
2 years ago
You have a small business that makes $50,000 accounting and economic profit for you. As a disabled person, you must work at home
kifflom [539]

Answer: This means: "d. Your economic profit has gone down and your accounting profit has stayed the same."

Explanation: The difference between the accounting and economic benefit is associated with the type of cost that each includes:

The accounting benefit is nothing more than the difference between income and cost.  In this case it is still $50000.

The economic benefit includes not only explicit costs. The economic benefit is the difference between income and total costs (explicit and implicit). Therefore, this benefit is less than the accounting benefit. Because in this case the cost of working at home is considered.

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3 years ago
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Answer:

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In the Statement os Cash Flow, cash provided by operating activities fails to take into account that a company must invest in a new property, plant, and equipment and must maintain dividends at current levels to satisfy investors.

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7 0
2 years ago
What education do you need for high school
LenaWriter [7]

Answer:

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5 0
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