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Eduardwww [97]
3 years ago
7

El Toro Corporation declared a common stock distribution to all shareholders of record on June 30, 20X3. Shareholders will recei

ve one share of El Toro stock for each two shares of stock they already own. Raoul owns 310 shares of El Toro stock, with a tax basis of $60 per share. The fair market value of the El Toro stock was $100 per share on June 30, 20X3. What are the tax consequences of the stock distribution to Raoul
Business
1 answer:
Natasha2012 [34]3 years ago
7 0

Answer:

This distribution is not taxable since Raoul is not earning any money at all (dividend income = $0), but the tax basis on the stocks that he holds will vary.

Before the distribution, Raoul had 310 shares, each share with a $60 tax basis. After the distribution, Raoul will have 465 shares, each share with a $40 tax basis.

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In a competitive market equilibrium, the allocation of the social surplus is such that ____________.
Leto [7]

In competitive market equilibrium, the allocation of the social surplus is such that no individual can be made better off without making someone else worse off.

The phrase "competition equilibrium" refers to an equilibrium condition when the firm's goal of maximising profits and the customers' goal of maximising utility both aspire to reach an equilibrium price as a result of freely determined prices.

According to the theory of competitive equilibrium, the firm's supply of the product is equal to the market's demand for that same amount of the product. It is a circumstance in which neither the buyer nor the seller can strengthen their bargaining position with regard to the goods being sold.

Learn more about competitive market here brainly.com/question/13961518

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6 0
1 year ago
The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one prod-uct. Beginning in
trasher [3.6K]

Answer:

$32,000

Explanation:

Calculation to determine the before-tax LIFO liquidation profit or loss that the company would report

Before-tax LIFO liquidation profit =8,000 Units × ($12.00 per unit – $9.00 per unit) + (12,000 units-10,000units)× ($12.00 per unit – $8 per unit)

Before-tax LIFO liquidation profit =(8,000 units× $3 per unit)+(2,000 units ×$4 per unit)

Before-tax LIFO liquidation profit =$24,000+$8,000

Before-tax LIFO liquidation profit =$32,000

Therefore the before-tax LIFO liquidation profit or loss that the company would report in a disclosure note will be $32,000

7 0
3 years ago
Last year a company spent $11 million on Internet advertising. If that amount increases by 17 percent this year, how much will t
never [62]

If a company spent that much on internet advertising and increased it by 17%, the new amount spent would be $12.87 million.

<h3>How much did the company spend on advertising?</h3>

The amount spent can be calculated as:

= Amount x (  1 + increase in advertising)

Solving gives:

= 11 million x (  1 + 17%)

= 11 x 1.17

= $12.87 million

Find out more on advertising expenses at brainly.com/question/24967768.

7 0
2 years ago
1. What are the three stages in strategic management? Which stage is more analytical? Which relies most on empowerment to be suc
valkas [14]

Answer:

strategic management: strategy formulation, strategy implementation, and evaluation and control.

3 0
3 years ago
Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500th unit, and the
dimaraw [331]

Answer:

D : All options are correct

Explanation:

- The marginal buyer is the essence of demand curve while marginal seller is essence of supply curve.

- @ Q = 500 units,    Selling Price is set at SP = $35

- @ Q = 500 units,    Buying Price is set at BP = $40

- Since, SP ≠ BP our equilibrium price would be $ 37.5 assuming the price elasticity of demand and supply are equal. In any case the equilibrium price would lie in between [ 35 , 40 ] such that to prevent a shortage of units in near future.

- Moreover, if the seller decides to sell at price $35 then he must sell goods greater than 500 units to reach the equilibrium profits. However, it could also lead to excess of units or surplus.

- We see that from selling the goods at SP = $35 while the buyer is willing to pay BP = $40 for 500 goods, the seller would be under-profiting and would be earning $5*500 = $2,500 less than he would at equilibrium price of $40 and selling units greater than 500. Hence, 500 goods is not an efficient quantity of goods.

6 0
3 years ago
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