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alekssr [168]
3 years ago
8

Tracy and Lance, equal shareholders in Macaw Corporation, receive $600,000 each in distributions on December 31 of the current y

ear. Macaw’s current year taxable income is $1 million and it has no accumulated E & P. Last year, Macaw sold an appreciated asset for $1,200,000 (basis of $400,000). Payment for one-half of the sale of the asset was made this year. How much of Tracy’s distribution will be taxed as a dividend?A. $0B. $300,000C. $500,000D. $600,000E. None of the above
Business
1 answer:
Lorico [155]3 years ago
6 0

Answer:

B. $300,000

Explanation:

Macaw Corporation increased its E & P last year for the entire amount of the deferred gain on the installment sale. Since one-half of the $800,000 gain is included in taxable income in the current year, taxable income should be reduced by this amount to determine current E & P. Therefore, Macaw Corporation’s current year E & P is $600,000 ($1 million taxable income – $400,000 of installment sale gain). Because one-half of the current E & P is allocated to Tracy’s distribution, she has a $300,000 dividend

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Determine whether each of the following topics would more likely be studied in microeconomics or microeconomics.
Jlenok [28]

Answer:

<u>The effect of government regulation on a monopolist's production decisions</u>

Explanation:

The effect of a large government budget deficit on the economy's price level

The superavit or deficit of the government is a macroeconomics subject.

The money market is also macroeconomics.

The impact of regulation or specifit taxes or tax extemption on a monopolist's production will be part of microecnomics, because it will impact on which level the monopolist's production finds equilibrium after the legislation.

4 0
3 years ago
_____ function of management is when a manager is responsible for organizing a staff and making sure the staff members have the
BARSIC [14]

The organizing function of management is when a manager is responsible for organizing staff and making sure the staff members have the necessary resources to do their jobs. This is further explained below.

<h3>What is the Organizing function of management?</h3>

Generally, In order to achieve goals, the role of management is to establish an organization's structure and allocate human resources.

In conclusion, Management's organizing role is to ensure that employees are properly organized and equipped to carry out their duties.

Read more about  management

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6 0
2 years ago
The recovery time objective (RTO) downtime metric is the defined as the point in time to which lost systems and data can be reco
Elena L [17]

Answer:

False

Explanation:

 Recovery time objective(RTO) - The main objective of RTO is to work on the real-time designation.  It works to define lost or re-entered data during the downtime of the network. The purpose of RTO is to define the actual working time before a disturbance begins.

It defined to that time period during which the unprocessed process can be recovered after the disturbance occurs during any business operation.

8 0
3 years ago
Which of the following is one of the three core issues in developing and implementing organizational strategy? A. Political issu
IgorLugansk [536]

Answer:

The answer is B. Behavioral issues

Explanation:

Behaviour is embedded into the people and when this occur for a very long period of time, it becomes highly difficult to change these behaviours and moreover it becomes difficult for the employees change their attitudes and mindset as well.

Behavioral issues are among key obstacles when in implementing a new organisational strategies.

5 0
3 years ago
Problem 8.20 Jenny Banks is interested in buying the stock of Fervan, Inc., which is increasing its dividends at a constant rate
blagie [28]

Answer:

a). The current value of this stock=$30.29

b). The price of the stock in year 5=$66.84

Explanation:

a). Current value of stock

Use the expression for calculating the required rate of return to solve for the  current value of stock as follows:

RRR=(EDP/SP)+DGW

where;

RRR=required rate of return

EDP=expected dividend payment

SP=share price

DGW=dividend growth rate

In our case:

RRR=17.15%=17.15/100=0.1715

EDP=$2.65

SP=unknown

DGW=8.4%=8.4/100=0.084

replacing in the original expression;

0.1715=(2.65/SP)+0.084

2.65/SP=0.1715-0.084

2.65/SP=0.0875

SP=2.65/0.0875=30.28571

The share price of the stock=$30.29

The current value of this stock=$30.29

b). Future value of stock

The future value of stock can be expressed as;

Future value={(required rate of return+1)^number of years}×current stock price

where;

required rate of return=17.15%=17.15/100=0.1715

number of years=5

current stock price=$30.29

replacing;

30.29×{(0.1715+1)^5)}

30.29×{1.1715^5}

The price of the stock in year 5=$66.84

4 0
3 years ago
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