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Scorpion4ik [409]
3 years ago
13

Which of the following will prevent a corporation from qualifying as an S corporation?A. Deriving more than 40% of its gross rec

eipts from passive income sources.B. Having a partnership as a shareholder.C. Owning more than 50% of the stock of a domestic corporation.D. Having 100 shareholders.
Business
1 answer:
Semenov [28]3 years ago
5 0

Answer:

Having a partnership as a shareholder.

Explanation:

An S corporation or an S sub-chapter is a small business corporation that has been allowed by the Internal Revenue Services(IRS) to file its tax as a corporation. IRS recognizes an S corporation as a legal form of business ownership. An S corporation may elect to pass its income and losses deductions directly to the shareholders for federal tax purposes.

For a small business corporation to qualify as an S corporation, it must meet specific requirements. Some of the requirements include

  1. Shareholders should be individuals, certain trusts, estates, and specific exempt organizations. Shareholders can not be corporations or partnerships.
  2. Shareholders must be US residents or citizens
  3. The Entity should not have more than 100 shareholders.

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You use u.s. currency to pay the owner of a restaurant for a delicious meal. the currency
I am Lyosha [343]

b. has intrinsic value. the exchange is an example of barter. is your best answer.

Intrinsic value is the value of a given item without market value.  Pretty much no matter what the market value is (stock), the item's price will not change.

~

6 0
3 years ago
Bob is evaluating a bond issue to determine the right price for the bond. In his evaluation, he gathers the following informatio
Elanso [62]

Answer:

The price of the bond is $1000. Thus, option a is the correct answer.

Explanation:

The price of a bond is calculated using the present value of the interest payments made by the bond, which is in the form of an annuity, plus the present value of the face value of the bond. The present value is calculated by discounting the annuity of interest and the face value by the YTM or yield to maturity. In case YTM is not provided, we assume that it is same as or equal to the coupon rate paid by the bond.

The formula for the price of the bond is attached.

Bond Price = 25 * [(1 - (1+0.025)^-8) / 0.025]  +  1000 / (1+0.025)^8

Bond Price = $1000

5 0
3 years ago
A firm's bonds have a maturity of 10 years with a $1,000 face value, a 9 percent semiannual coupon, are callable in 5 years at $
Sladkaya [172]

Answer:

Yield to maturity is 3.94%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Coupon payment = $1,000 x 9% = $90/2  = $45 semiannually

Selling price = P = $1080

Number of payment = n = 10 years x 2 = 20

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $45 + ( 1000 - 1080 ) / 20 ] / [ (1,000 + 1080 ) / 2 ]

Yield to maturity = [ $45 - 4 ] / 1040 = $41 /1040 = 0.394 = 3.94%

4 0
3 years ago
You purchase one IBM July 120 put contract for a premium of $3. You hold the option until the expiration date when IBM stock sel
ZanzabumX [31]

Answer:

Loss on putting for long time = $300 (Loss )

Explanation:

Given:

Strike price = $120

Stock price = $123

Premium amount = $3 per share

Realize on investment = ?

Computation of realizing on investment:

Given that strike price is lower than the stock price, So premium paid considers as a loss.

Loss on putting for long time = $3 × 100

Loss on putting for long time = $300 (Loss )

7 0
3 years ago
What was this product's net operating income (loss) last year? last year minden company introduced a new product and sold 15,000
mafiozo [28]

Answer:

1. What was the product's operating income(loss) last year = $90,000 loss

2. What is the product's Break even point in unit sales and dollars

• Break even sales in units 18,000

• Break even i n sale dollars $1,260,000

3. Maximum annual profit given an increment of 5,000 units and reduction of sales price per unit by $2.

• Net profit of $20,000

4. What would be the break even point in unit sales and dollars using the selling price that you determined in requirement 3.

• Break even sales units 19,285.7

• Break even in sales dollars $1,311,427.6

Explanation:

Please see attached detailed solution to the above questions and answers.

3 0
3 years ago
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