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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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Joe received a DUI violation while partying last Christmas and he was found guilty by the court. His real estate license is due
Kazeer [188]

Answer:

Yes, Joe needs to disclose to the commission about his violation.

Explanation:

Driving under the influence (DUI) is the crime or offense of driving or operating a motor vehicle while impaired by alcohol or other drugs to a level that renders the driver incapable of operating a motor vehicle safely.

if the defendant violated probation by breaking a law, the probation revocation hearing will probably take place after the new offense has been disposed of.

Defendants are entitled to written notification of the time, place, and reason for the probation revocation hearing.

For Joe to be able to renew his real estate license he has to speak for a qualified attorney who will plead his case on his behalf.

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3 years ago
You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be made over a four-year period, w
Sloan [31]

Answer:

A = 28000 [\frac{0.12 (1.12)^4}{(1.12)^4 -1}]

A = 28000 [\frac{0.12*1.574}{1.574-1}]

A=28000*0.3292 = 9218.564

So then the annual pay would be $ 9218.564 for this case

Explanation:

For this question we can use the Equivalent annual value (A) given by the following expression:

A = PV [\frac{i (1+i)^t}{(1+i)^t -1}]

Where PV = 28000 represent the pesent value

i = 0.12 since the rate is yearly

t = 4 since we have 4 years to pay

So then we have everything to replace and we got:

A = 28000 [\frac{0.12 (1.12)^4}{(1.12)^4 -1}]

A = 28000 [\frac{0.12*1.574}{1.574-1}]

A=28000*0.3292 = 9218.564

So then the annual pay would be $ 9218.564 for this case

And this amount would be paid each year in order to pay all the money after 4 years.

6 0
3 years ago
Henry is the manager at a store that sells clothes for all seasons. The latest trend, he found, was in summer beachwear. So, he
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3 years ago
Read 2 more answers
a company uses the weighted average method of process costing. it had 40,000 units in beginning inventory, which were 70% comple
eduard

A company uses the weighted average method of process costing. It had 40,000 units in the beginning inventory, which were 70% complete as to materials and 80% complete as to conversion and during month it started 110,000 units. At the end of the month, 32,000 units were in inventory which 65% complete as to materials and 60% complete as to conversion. <u>The total cost accounted for the month is $1,614,360 with cost per equivalent unit of productions for direct material is $5.70 and for conversion is $4.87</u>

Weighted average method is an approach to valuing a company's business inventory stock and determines the average cost of all inventory items.

Please reference to the first picture for more information about this case.

From the information we know that:

Beginning work in process inventory:

Direct materials costs                 $158,200

Conversion costs                        $193,600

Total beginning inventory cost                   $351,800

Costs added during the month:

Direct materials costs                $632,960

Conversion costs                       $629,600

Total costs added during the month        $1,262,560

Total production costs                               $1,614,360

                                    Units      Materials%     Conversion%

Beginning inventory  40,000         70%                80%

Unit started                 110,000

Ending inentory          32,000        65%                60%

To find the costs per equivalent units of production, we need to know the total equivalent units of production first.

The total equivalent units of production could be found by adding the units completed and transferred out with units of ending work in process. The equivalent units completed and transferred out could be calculated by adding the unit started at the month to the beginning inventory and eliminating the ending inventory units. Please make sure that the beginning inventory amount calculated here should be counted as 100% instead of the presented percentage in the case.

Equivalent units of production                         Direct materials  Conversion

Equivalent units completed and transferred out  129,200            130,800

Equivalent units for ending work in process         20,800              19,200

Total equivalent units of production                     138,800             169,199

Cost per Equivalent unit of production        Direct materials  Conversion

Costs of beginning work in process inventory  $158,200        $193,600

Costs added during month                                 $632,960        $629,600

Total costs                                                            $791,160          $823,200

Equivalent units of production                             138,800           169,199

Costs per equivalent units of production              $5.70              $4.87

For more complete calculation, please refer to the second image below.

Learn more about Weighted Average Method here: brainly.com/question/15095915

#SPJ4

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1 year ago
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