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
puteri [66]
3 years ago
7

Juanita owns 60% of the stock in a C corporation that had a profit of $200,000 in the current year. Carlos owns a 60% interest i

n a partnership that had a profit of $200,000 during the year. The corporation distributed $45,000 to Juanita, and the partnership distributed $45,000 to Carlos. With respect to this information, which of the following statements is incorrect?
(a) Juanita must report $120,000 of income from the corporation.
(b) The corporation must pay corporate tax on $200,000 of income.
(c) Carlos must report $120,000 of income from the partnership.
(d)The partnership is not subject to a Federal entity-level income tax.
(e)None of the above.
Business
1 answer:
Ivan3 years ago
4 0

Answer:

The statement which is incorrect or not true is Option A.

Explanation:

Juanita owns 60% of stock in the corporation, so from the profit of $200,000 in the current year, she should report

= $200,000 × 60%

= $120,000

But the Corporation distributed $45,000 to Juanita. Therefore, she should report only $45,000 for this year not $120,000.

Therefore, the first option is incorrect.

You might be interested in
Cornerstone, Inc. has $125,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell
kvv77 [185]

Answer:

It is better to cleaned and shipped to the firm's outlet center at a cost of $23,000 to be sold at $80,000

Explanation: In alternative A) the firm loss is $80,000 ($125,000-$45,000)

In alternative E) all $125,000 is lost

In alternative B, C and D) the loss is $68,000 ($125,000-$80,000+$23,000)

Relevant costs are those evitable, that are cause of a manager decision related to an specific business decision.  

The only cost that can be avoided in these example is the cost of $23,000 so the goods can be cleaned and shipped to the firm's outlet center

6 0
3 years ago
Lauren went to see a therapist, and during their first session they established clear goals coupled with assignments to be done
frozen [14]
Lauren's therapist was using Cognitive Behavioural Therapy [CBT]. CBT refers to a short term, goal oriented psychotherapy treatment that uses practical approach for problem solving. The principal goal for using this technique is to change the behavior or the mentality that is responsible for the patient problem.
7 0
3 years ago
What factor reflects the 'cost of money'?
abruzzese [7]

Answer:

Production opportunities, time preferences for consumption, risk, inflation. Explanation: The cost of money is the interest rate that lenders charge borrowers, and is determined by the supply and demand of funds.

5 0
3 years ago
At December 31, 2020, Desert Company reports the following balances for its liability accounts:   7% note payable issued 10/1/20
LekaFEV [45]

Answer:

Desert Company

The amount of notes payable that should be recorded as a current liability will be $520,000.

Explanation:

The 8% notes payable had been refinanced to a long-term notes payable.  But, the 7% notes payable was still being negotiated for refinancing.  Since the refinancing had not been agreed, the notes payable would still have a balance of $520,000.  However, a note in accounts could state the fact that the notes payable was being negotiated for refinancing.

5 0
3 years ago
Alex is a member of a corporate sales team who frequently speaks in front of groups as part of sales presentations. He has now b
dybincka [34]

Answer: Alex tells a story about his brother that causes his friends and family in the audience to laugh.

Explanation:

The statement that describes a strategy that Alex could use to deliver a lighter speech will be for Alex to tell a story about his brother that causes his friends and family in the audience to laugh.

It's but proper for Alex to tell an embarrassing joke about his brother. Also, preparing a long statement to be delivered when it's time to toast can make the event boring.

Therefore, the correct option is A.

8 0
3 years ago
Other questions:
  • If a bakery hires on person to bake cookies and another to bake cakes,the bakery is applying the concept of specialization.
    11·1 answer
  • The pursuit of an activity for an outcome that is separate from the person is called
    6·1 answer
  • The hidden-cost fallacy occurs when a. ​A firm considers irrelevant costs b. ​A firm ignores relevant costs c. ​A firm considers
    8·1 answer
  • The primary responsibility of the board of directors is to ___ . a. tell all the managers what to do b. oversee the affairs of t
    5·1 answer
  • Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of al
    7·1 answer
  • Which of the following statements is CORRECT?
    6·1 answer
  • While rachael, a psychology major at the local university worked frantically at her job at groovy rags retail in anticipation of
    8·1 answer
  • What are the main advantages of volume-based allocation methods compared to activity-based costing?
    5·1 answer
  • Which of the following is NOT a cost typically associated with owning a car?
    9·1 answer
  • Unlike a printed product, online service information<br> can be instantaneously ___ by the provider.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!