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stira [4]
3 years ago
11

A subsidiary can pay only 50% of its profits to its parent company unless the subsidiary's accumulated retained earnings have be

en built up to at least 50% of the book value of capital stock. Group of answer choices
Business
1 answer:
Aleks [24]3 years ago
7 0

Answer:

False

Explanation:

There is no restriction that prohibits the payment of dividends from a subsidiary to a parent company. The parent company has to report the subsidiary's profit as taxable income, so the subsidiary must pay its dividends to the parent company. To avoid multiple layers of taxation, parent companies can use the dividends-received deduction to reduce their taxes on the dividends received. Then the parent company must itself distribute dividends to its shareholders.

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The total of tools, equipment, machinery, and buildings used to produce goods and services is called supply. True or False
Tanya [424]
True, they are called supply
3 0
3 years ago
In order to encourage employee ownership of the company’s $1 par common shares, Washington Distribution permits any of its emplo
svetoff [14.1K]

Answer:

The appropriate journal entry to record the March purchases of shares under the employee share purchase plan are as follows:

Debit: Cash ($12 × 85%) × $50,000 = $510,000

Debit: Compensation Expense ($12 × 8%) × $50,000 = $90,000

Credit: Common Stock = $50,000

Paid in Capital – Excess of Par ($50,000 × $11) = $550,000

7 0
3 years ago
Cant take big d but i suck on it....
Scrat [10]
.. huh and orange then me too and brown and green faking a red green brown
6 0
2 years ago
Read 2 more answers
If a one-year bond has a face value of $5,000 and is sold for $4,500, what is the interest rate on the bond?
Arada [10]

Answer:

11.1%

Explanation:

The face value is $5000

It is sold for $4,500

Therefore the interest rate of this bond can be calculated as follows

$5000-$4500

= 500

500/4500 × 100

= 0.111 × 100

= 11.1%

Hence the interest rate is 11.1%

6 0
3 years ago
Krete is an unmarried taxpayer with income exclusively from wages. By December 31, year 1, Krete's employer has withheld $16,000
storchak [24]

Answer:

The answer is: $0

Explanation:

Krete would have been forced to pay a penalty only if her taxes due after withholdings were over $1,000 . Since she only owed $200 in taxes, she will not receive any penalty for underpayment. But she will still have to pay a penalty for not paying the $200 she owes (this is a separate penalty).

4 0
3 years ago
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