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kondaur [170]
4 years ago
10

White Corporation, a closely held personal service corporation, has $150,000 of passive activity losses, $120,000 of active busi

ness income, and $30,000 of portfolio income. How much of the passive activity loss can White Corporation deduct? a.$0 b.$30,000 c.$120,000 d.$150,000 e.None of these choices are correct.
Business
1 answer:
LenKa [72]4 years ago
3 0

Answer:

correct option is a.$0

Explanation:

given data

passive activity losses = $150,000

active business income = $120,000

portfolio income = $30,000  

to find out  

how much passive activity loss can White Corporation deduct

solution

as per given we know that here white corporation is a Personal Service Corporation

so that it is not deduct the passive loss against the portfolio income

so correct option is a.$0

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The​ _____ rate is the percentage of a​ company's customers​ (within a given span of​ time) who by the end of that time span hav
jeyben [28]

Answer:

churn

Explanation:

Based on the information provided within the question it can be said that the term that is being described is called the churn rate. This term refers to the annual percentage rate that details the amount of customers in a year that have stopped/cancelled their subscription to a service or the amount of employees that have left a specific job.

7 0
4 years ago
7. GH Company has $5000 of debt and $20,000 of equity. GH pays 5% interest on all of its debt. GH has an equity beta of 2. The m
Artyom0805 [142]

Answer:

WJK's Unlevered Beta = 1.7

 Expected rate of return = 13%

Financial leverage = 0.25

Explanation:

given data

debt = $5000

equity = $20,000

interest = 5%

equity beta  = 2

market risk premium = 5.5%

risk free rate of return = 2%

marginal tax rate = 30%

solution

we find here Unlevered Beta that is

Unlevered Beta = \frac{Beta (Levered)}{{1 + [ (1- tax rate)* (\frac{Debt}{Equity})]}}    ...........................1

as that we can say  

WJK's Unlevered Beta = \frac{Beta of GH (Levered)}{{1 + [ (1- tax rate)* (\frac{Debt of GH}{Equity of GH})]}}

put here value we get

WJK's Unlevered Beta = \frac{2}{{1 + [ (1- 0.3)* (\frac{5000}{20000})]}}

WJK's Unlevered Beta = \frac{2}{1.18}

WJK's Unlevered Beta = 1.7

and

Expected rate of return on equity of GH using CAPM = Risk free rate + Beta of GH ×  (Market risk premium)

Expected rate of return =  2% + 2 × (5.5%)

 Expected rate of return = 13%

and

Financial leverage will be here

Financial leverage = \frac{Debt}{Equity
}

Financial leverage = \frac{5000}{20000
}

Financial leverage = 0.25

5 0
4 years ago
If a conventional loan is at 16% and the VA loan is at 15%, the lender will want to charge how many points to increase the yield
Ulleksa [173]

The lender will have to charge eight points to increase the yield on the investment or debt. A loan occurs when one or more people, businesses, or other entities lend money to other people, businesses, entities or borrower.

The borrower incurs a debt and is frequently liable for the interest charges up until the debt is paid off, in addition to the principle amount borrowed. The payment of interest encourages the lender to make the loan. A legal loan's responsibilities and restrictions are all enforced by a contract, which may also expose the borrower to extra restrictions known as the loan covenants.

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7 0
2 years ago
The average national utility price is $270. 48. Over a 6-month period, what is the average utility price in Dallas? How does thi
makvit [3.9K]

Answer:

Im pretty sure its b

Explanation:

5 0
2 years ago
Russell Co. received a $520 utility bill for the current month's electricity. It is not due until the end of the next month whic
nekit [7.7K]

Answer:

Journal Entry to reflect the event is as follow;

                                  Dr.       Cr.

Utility Expense       $520

Utility bill payable              $520

Explanation:

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5 0
4 years ago
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