1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
According to pmi’s agile’s practice guide, which roles are considered appropriate agile roles?
Mamont248 [21]

Traditional predictive project management and the PMI's Project Management Body of Knowledge remain inextricably linked, notwithstanding changes made in the Sixth Edition (PMBoK).

Concerns for Agile/Adaptive Environments are covered in each of its 10 Knowledge Areas. But generally, they are only two or three paragraphs long. The primary goal is raising awareness.

The organization's own Agile Project Management qualification is designated as a PMI Agile Certified Practitioner (PMI-ACP). The PMI-ACP is also the certification with the fastest growth.

Instead of calling Scrum a methodology, Schwaber refers to it as a framework. This is mainly because many people associate the word "methodology" with being prescriptive in character.

To learn more about PMI's here

brainly.com/question/17460312

#SPJ4

6 0
2 years ago
In the month of June, a department had 19900 units in beginning work in process that were 75% complete. During June, 90200 units
balandron [24]

Answer:

103,500 units

Explanation:

Equivalent units calculation - conversion costs

Completed and transferred units (99,100 x 100 %)   = 99,100 units

Ending Work in Process units (11000 x 40%)             =  4,400 units

Total Equivalent units                                                  = 103,500 units

therefore,

The equivalent units of production for conversion costs for June were 103,500 units

7 0
3 years ago
Rudy and his publisher require Katherine's expertise in writing a chapter of a book that will be published under Rudy's name. Th
Brilliant_brown [7]

Answer:

The delegation is not effective and valid since the original contract was based on personal skills and it involves personal services.

Katherine's personal expertise is required to write the chapter and Dana does not necessarily possess the same expertise or skills as Katherine does.

4 0
3 years ago
For each of the following transactions, determine if Raymond Corporation has earned revenue during the month of May and, if so,
kompoz [17]

Answer:In the month of May, Revenue was only earned from Customer C $3,400 and customer D, $2,300. Revenue was not earned from Customers A and B in the month of May. Therefore, total revenue is $5,700.

Explanation:In accordance with the principle of revenue recognition,Revenue will only be recognised when it is earned and services when they are fully rendered. For Customer A, the service has not been rendered, Therefore, the revenue is not yet earned.

For customer B, Although agreement has been reached and goods delivered, since payment hasn't been received, revenue is not recognised.

6 0
3 years ago
One of the ways to generate word of mouth advertising is
Studentka2010 [4]
C because that’s what one way to generate word of mouth advertising
7 0
3 years ago
Other questions:
  • Suppose that country a has higher real income per capita than country
    8·1 answer
  • A company’s weighted average cost of capital is 10.8% per year and the market intrinsic value of its debt is $33.1 million. The
    8·1 answer
  • A new manufacturing machine is expected to cost $289,000, have an eight-year life, and a $33,000 salvage value. The machine will
    7·1 answer
  • Relaxant Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation. Which of the
    8·1 answer
  • Suppose you borrowed $15,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years.
    12·1 answer
  • Defined as a loss in value from any cause, depreciation is generally divided into three categories. The loss of value due to the
    15·1 answer
  • In the month of March the Digby Corporation received and delivered orders of 173,000 units at a price of $15.00 for revenue of $
    6·1 answer
  • You can buy a computer with your credit card and pay for it over the course of one year. With an interest rate of 16 percent, yo
    7·1 answer
  • 9. Calculating the price elasticity of supply Rajiv is a college student who lives in Chicago and does some consulting work for
    12·1 answer
  • Geraldine Fadsi's job in the entertainment industry is to bring together entertainers and organizations looking to hire entertai
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!