Answer: Dividend of $100,000, Capital Gain of $100,000 and Tax Free Return on basis of $100,000
Explanation:
Longhorn Company reports current E&P of $100,000 in 20X3 and still distributed $300,000 to it's sole shareholder. Because it had $100,000 in current E&P, that is all it can declare as Dividends. For this reason, the shareholder will recognize $100,000 as Dividends.
The Shareholder has a basis of $100,000 in the stock of Longhorn. As a result of this, $100,000 of the Distribution will be termed a TAX FREE Return on Basis because he is receiving a return on his basis that is neither a dividend nor capital gain.
The remaining $100,000 will be considered a Capital Gain as it reflects a rise in his stock.
If Congress passed a tax increase at the request of the president to reduce the budget deficit, but the Fed held the money supply constant, then the two policies together would generally lead to lower income and a lower interest rate.
<h3>What is
budget deficit?</h3>
When ongoing expenses are higher than regular operating revenue, a budget deficit results. Budget deficits may result from specific unforeseen circumstances and initiatives. Tax increases and spending reductions are two ways that nations might deal with budget problems.
Inflation, or the ongoing rise in prices, is one of the main threats posed by a budget deficit. A budget deficit in the US may lead to the Federal Reserve releasing more money into the economy, which fuels inflation. Year after year, ongoing budget deficits may result in inflationary monetary policy.
The relationship between deficits and interest rates is more clearly demonstrated when the deficits are used to fund government spending than by tax reductions. If tax cut recipients save part of the money they receive from the tax cut, the impact of the tax cut on interest rates should be minimized.
To know more about budget deficits refer to: brainly.com/question/14181631
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Answer:
they will increase the expenses (in the income statement) and short term liabilities.
Explanation:
There are two methods that can be used to make payments. On cash basis, you can directly pay the amount, then the assets decrease (cash) and the expenses increases (wages).
If you somehow accrue the amount and pay it on a future date, then it will be regarded as short term liabilities that has to be covered up within 12 months.
Answer:
The correct answer is a) Sponsorship.
Explanation:
When it comes to sponsorship between two companies, it refers to the agreement they make so that one of the companies helps the others to promote its brand or product, benefiting from an economic incentive or the same product.
For example, in the case of the Livesheer company, they help sponsor the music festival with the agreement that the organizers promote their clothing brand at the festival through advertisements, as well as let them deliver a sample of their product to potential customers. This strategy is achieved through the sponsorship that Livesheer will give to the event organizers.
<em>I hope this information can help you.</em>
Answer:
option B is the correct answer..
Explanation:
-
market for phones will decline; consequently the equilibrium price will decrease in the amount as well.
- The argument can be supported by the fact that perhaps the fall in production at the initial price would generate an excess supply.
- Prices will therefore fall; therefore suppliers will be prepared to supply fewer, thereby rising demand.
