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sweet-ann [11.9K]
3 years ago
9

Because of its quality​ investments, Carolina Corporation has always generated​ 30% to​ 40% of its gross income from passive sou

rces. In the current​ year, Carolina sold a block of stock in a company it acquired several years ago. As a result of the​ sale, the corporation realized a substantial​ long-term capital gain that will increase this​ year's investment income from​ 40% to​ 70% of gross income. Explain to​ Carolina's president why she should or should not be worried about the personal holding company tax. ​(Assume that the stock ownership requirement is​ met.)
Business
1 answer:
qwelly [4]3 years ago
6 0

Answer:

It is funny how doing so well in business is not always completely beneficial. First of all, Carolina's president should be worried that her can be considered a personal holding company (PHC). PHC receive at least 60% of its adjusted ordinary gross income​ (AOGI) from passive sources. The other requirement is that 50% of its stock is owned by five or fewer individuals or companies. Being a PHC means more taxes, that is why Carolina Corporation should try to avoid being considered a PHC.

Carolina can avoid being considered a PHC if its other investment income (income from passive sources) along with this investment income, does not exceed​ 60% of its AOGI.

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The companies like Macy have to move to an Omnichannel strategy for selling their products because in Omnichannel strategy, products are sold through several distribution channels.

<h3>What is a distribution channels?</h3>

Distribution channel serves as the means by which companies make their products to be available to final consumer.

This channels encompass retailers as well as wholesaler, and in In omni channel, all the distribution channels are linked to each other.

Learn more about distribution channel at;

brainly.com/question/25630633

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2 years ago
Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 210,500 job
kow [346]

Answer:

Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 210,500 jobs. The NFP conventional contract pays out $85 for every job created in excess of the exercise price. a. What is the value of the option if job growth is 193,500.

The value of the option if job growth is 193,500 is $0.

Explanation:        

Since the job growth of 193,500 is less than the exercise price of 210,500 jobs, the value of the option on the contract in the given question is Zero.

Therefore, the value of the option if job growth is 193,500 is $0.

7 0
3 years ago
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One type of mutual fund does not endeavor to achieve the goals of a balance of bonds and stock or​ growth, income, and stability
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3 0
3 years ago
When identical units of an item are purchased at different costs,
Masja [62]
When identical units of an item are purchased at different costs: <span>an inventory cost flow method must be used under both a perpetual and a periodic inventory system.

A perpetual inventory system will update your inventory on hand after each sale or purchase of inventory is made.  A periodic inventory system is updated periodically, meaning, a company will give a time period they would like their sales and purchases to update in and the system will perform that. Both systems are great for a business but it's their option of how they are generated. 
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3 years ago
A company had sales of $500,000 in 1996 and sales of $720,000 in 1998. Use the midpoint formula to find the company's sales in 1
rjkz [21]

Answer:

$610,000

Explanation:

According to the midpoint value, we have to find out the mid value of two amount.

As in the question, the sales for 1996 and the sales for 1998 are given and we have to find out the sales for 1997

So, by using the mid point formula approach, the sales for 1997 is

= (1996 sales + 1998 sales) ÷ (Number of years)

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= ($1,220,000) ÷ (2 years)

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Therefore, the estimated sales value of the company for year 1997 is $610,000

3 0
3 years ago
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