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nata0808 [166]
3 years ago
15

When appreciated property is distributed in a nonliquidating distribution, the net effect on the distributing corporation's E&am

p;P is that it is reduced by the FMV of the property distributed and increased by the gain (net of federal income taxes) recognized due to the property distribution.TrueFalse
Business
1 answer:
lys-0071 [83]3 years ago
8 0

Answer:

True

Explanation:

"Nonliquidating corporate distributions are distributions of cash and/or property by a continuing corporation to its shareholders. At the shareholder level, a nonliquidating corporate distribution can produce a variety of tax consequences, including taxable dividend treatment, capital gain or loss, or a reduction in stock basis. [...]

The corporate-level tax consequences of a nonliquidating corporate distribution depend on whether the distribution consists of cash or property (other than cash). The corporation does not recognize gain or loss when it distributes cash to shareholders or when it redeems stock in exchange for cash payments."

Reference: Ellentuck, Albert  B. “Understanding the Effects of Nonliquidating Distributions on Corporations.” The Tax Adviser, 1 Jan. 2009

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What is the dividend on an 8 percent preferred stock that currently sells for $45 and has a face value of $50 per share?
topjm [15]

The dividend of a stock would always depend on the face value of the share. Therefore the dividend is calculated by:

Dividend = (Face Value) * (Interest rate)

Dividend = $50 per share * 0.08

<span>Dividend = $4 per share                                (ANSWER)</span>

7 0
3 years ago
During the past year, a company reported net income of $230,000. Depreciation expense was $22,000. In December the company recei
tamaranim1 [39]

Answer: $259000

Explanation:

Based on the information provided in the question, the amount of cash provided by operating activities that should appear on a statement of cash flows would be:

Net income = $230,000

Add: Depreciation expense = $22,000

Add: Rent = $7000

Total = $259,000

8 0
3 years ago
The ability to telecommute has come largely from the development of ________.
HACTEHA [7]
The ability to telecommute has come largely from the development of f<span>aster and more reliable internet capabilities</span>. Telecommuting allows people to work remotely and travel while working. This gives more flexibility to various lifestyles and also allows more people who benefit from working from home. Internet has greatly changed how people connect with one another.
3 0
3 years ago
Read 2 more answers
The buyer for an electronics store wants to estimate the proportion of defective wireless game controllers in a shipment of 5,00
Mila [183]

Answer: (C) Cluster sample

Explanation:

The cluster sampling is one of the sampling method type that is used for analyzing the given data or information from the given sampling cluster. In the cluster sampling method, the researches basically dividing the statistical population into the individual or separate group for analyzing the data.  

According to the given scenario, the cluster sample is one of the type of sample which us use for the given estimated problem.

The Cluster sampling is also refers as the one stage sampling process if the each element in the cluster are sampled together.

Therefore, Option (C) is correct.  

7 0
3 years ago
A costing system that uses actual costs for direct materials and labor and predetermined overhead rates to apply overhead is cal
eimsori [14]

Answer: normal costing system

Explanation:

A costing system which uses the actual costs for direct materials and the labor and predetermined overhead rates to apply overhead is referred to as the normal costing system.

Normal costing system is the cost allocation method whereby cost is assigned to products which are based on the labor, materials, and the overhead which are used in their production.

5 0
3 years ago
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