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Marysya12 [62]
3 years ago
5

Donna owns 800 shares of common stock in Macaw Corporation (adjusted basis of $40,000). She receives a 5% stock dividend when th

e stock is selling for $60 per share. How much gross income must Donna recognize because of the stock dividend? What is Donna’s basis for her 840 shares of stock?
Business
1 answer:
barxatty [35]3 years ago
5 0

Answer:

The gross income Donna needs to recognize from stock dividend is ZERO.

Donna’s basis for her 840 shares of stock is $47.62.

Explanation:

Assuming that Donna does not have any option to recieve dividend in form of cash, the stock devidend will be non-taxable.

Therefore, The gross income Donna needs to recognize from stock dividend is ZERO.

Adjusted basis per share after dividend

= Adjusted basis of 800 shares/number of shares

= $40,000/840

= $47.62

Therefore, Donna’s basis for her 840 shares of stock is $47.62.

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A tenant occupying 20,000 square feet in your building has two years remaining on their lease. You have a good relationship with
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Answer: $315000

Explanation:

From the information given in the question, the gross rental income that one will expect to receive for this space in the year after the lease expires goes thus:

= [(75% x 15) + (25% x 18)] x 20,000

= [(0.75 × 15) + (0.25 × 18)] × 20000

= (11.25 + 4.5) × 20000

= 15.75 × 20000

= 315,000

Therefore, the gross rental income is $315000

4 0
3 years ago
What are the primary functions of a central bank?
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Answer:

The correct answer is:

  • Conduct monetary policy;
  • Ensure that the financial system is stable;
  • Provide banking services to commercial banks, depository institutions, and the federal government.

Explanation:

A central bank is the apex monetary authority in a country. It plays several crucial roles in the smooth working of the economy.

  1. A central bank issues currency on behalf of the government.
  2. It formulates monetary policy on behalf of the government.
  3. It acts as a banker for the government.
  4. It acts as a banker for commercial banks.
  5. It supervises all financial institutions.

The role of providing services to businesses and consumers is played by commercial banks. Fiscal policy is formulated by the government. The responsibility of ensuring the growth of the economy also falls with the government.

4 0
3 years ago
"Universal Containers wants to maintain Service Level Agreements on its customer cases. Customers are provided different service
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Answer:

The answer is "Entitlements and Milestones ".

Explanation:

Entitlements are customer service systems inside SharePoint, like "contact help" or "web support." Usually, this is being used to reflect terms in service contracts. and Milestones are required time-dependent measures within that support process, including initial response times or event resolution times.  

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4 years ago
The terms of a business combination can provide that former shareholders of the acquired firm may receive additional compensatio
Art [367]

Answer:

No, they wouldn't.

Explanation:

Any extra compensation to former stockholders of an acquired company which is based on post-combination share price or post-combination profits cannot be recognized as adjustments in the price of business combinations.

The reason for this is that changes in the fair value of contingent consideration (in case something happens) after the company has been acquired, e.g. achieving certain profits or stock price, are not considered period adjustments, therefore they cannot be included in the cost of the business combination (acquisition).

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3 years ago
A(n) ________ is a tool management uses to assess the potential of a firm's business portfolio. It helps management decide how t
frozen [14]

Answer:

3. portfolio analysis

Explanation:

Some example is portfolio analysis are:

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Gillette provides shaving products and batteries.

Protfolio analysis is the process by which the portfolio or products of a business are reviewed. It is done to analyse risk and returns. When portfolio analysis is done frequently it helps the business make changes in portfolio allocation based on changing market needs.

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