The Johnson's can't sue the driver in the Federal Court because the Johnson's live in the same state (since the driver lives near the Johnson's in the same time) and the damages ($5,000.00) are too small.
expect what?
Please make sure you finish your question, thank you ❤️
Answer:
The tax consequences to Comet because of the stock redemption would be a reduction of $40,000 in E&P because of the exchange.
Explanation:
According to the given data we can conclude that the tax consequences to Comet because of the stock redemption would be Reduction of E& P due to exchange. In order to calculate the amount of Reduction we would have to make the following calculation:
Reduction of E& P due to exchange=Total E&P*Total voting Right Sold
According to the given data we have the following:
Total E&P=Comet has total E&P of $160,000
Total voting Right Sold=shares redeem by comet/shares by Pat+shares by Pam
Total voting Right Sold=50/ (100+100)
Total voting Right Sold=25%
Therefore, Reduction of E& P due to exchange=$160,000*25%
Reduction of E& P due to exchange=$40,000
The tax consequences to Comet because of the stock redemption would be a reduction of $40,000 in E&P because of the exchange.
Answer: production in excess of normal capacity cannot be sold.
Explanation:
We say that there's a favorable volume variance in a situation whereby the production that's budgeted is less than the actual production.
Favorable volume variances may be harmful when production in excess of normal capacity cannot be sold. This is because since it can't be sold, this can bring about losses to the business.
Answer:
See explanation section
Explanation:
December 31 Interest receivable Debit $4,000
Interest revenue Credit $4,000
Calculation: $600,000 × 8% × (1 ÷ 12) = $48,000 × (1 ÷ 12) = $4,000. Therefore, the monthly interest revenue = $4,000.
<em>As Starr corporation provided a loan on December 1, they received interest revenue for 3 months. However, as the fiscal year closes on December 31, the interest revenue is owed for one month only. </em>