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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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Porter Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product.
kkurt [141]

Answer:

1,370.85 Unfavorable

Explanation:

Standard rate :

= Budgeted variable overhead costs ÷ Budgeted direct labor hours

= $13500 ÷ 640

Direct labor hours = $21.09 per direct labor hour

Standard time to produce goods :

= Budgeted direct labor hours  ÷ Production volume

= 640 ÷ 6,400

= 0.10 hours

VOH Efficiency Variance

= ( SH − AH ) × SR

where,

SH are standard direct labor hours allowed

AH are the actual direct labor hours

SR is the standard variable overhead rate

(SH − AH ) × SR

= [(4,200 × 0.10) - 485] × $21.09

= (420 - 485) × $21.09

= 1,370.85 Unfavorable

5 0
3 years ago
During 2018, its first year of operations, Pave Construction provides services on account of $152,000. By the end of 2018, cash
ASHA 777 [7]

The adjustment for noncollectable accounts on December 31, 2018:

Debit Bad Debts Expense $13,800

Credit Allowance for Doubtful Account $13,800

Explanation:

In Pave Construction, 2018 is the first year of operations. The company provides services on account of $152,000.

By the end of 2018, cash collections on these accounts total $106,000.

At the end of 2018, Accounts Receivable (the uncollected accounts) has debit balance of $46,000 ($152,000 - $106,000 = $46,000)

Pave estimates that 30% of the uncollected accounts will be bad debts

Bad Debts Expense = 30% x $46,000 = $13,800

The adjusting entry to record the bad debts expense will be:

Debit Bad Debts Expense $13,800

Credit Allowance for Doubtful Account $13,800

3 0
3 years ago
Jenna Parker owns and manages her single member LLC which provides a wide variety of financial services to her clients. She is m
Julli [10]

Answer:

Option ( b ) $57,000

Explanation:

Data provided in the question:

Net income = $300,000

W-2 wages = $120,000

Assets with unadjusted basis = $75,000

Taxable income before the QBI deduction = $285,000

Now,

The QBI deduction for 2019 will be given as 20% of the qualified income i.e the taxable income before the QBI deduction

Therefore,

The QBI deduction for 2019 = 20% of $285,000

= 0.20 × $285,000

= $57,000

Hence,

Option ( b ) $57,000

5 0
2 years ago
Which of the following statements, if any, is (are) true?
irina1246 [14]

Answer:

The answer would be C

Explanation:

When it comes to considering life insurance as an investment, you’ve probably heard the adage, “Buy term and invest the difference.” This advice is based on the idea that term life insurance is the best choice for most individuals because it is the least expensive type of life insurance and leaves money free for other investments.

Permanent life insurance, the other major category of life insurance, allows policyholders to accumulate cash value, while term does not, but there are expensive management fees and agent commissions associated with permanent policies, and many financial advisors consider these charges a waste of money.

When you hear financial advisers and, more often, life insurance agents advocating for life insurance as an investment, they are referring to the cash-value component of permanent life insurance and the ways you can invest and borrow this money.

There are many arguments in favor of using permanent life insurance as an investment. The issue is, these benefits aren’t unique to permanent life insurance. You often can get them in other ways without paying the high management expenses and agent commissions that come with permanent life insurance.

Liquidity risk is one of the major risks faced by financial entities (such as banks, insurance companies and pension funds) and one of the primary causes of the 2008 financial crisis. Yet many entities with financial exposure cannot quantify the liquidity risks to which they are exposed.

In layman’s terms, liquidity risk can be described as the risk that arises from being unable to sell an asset in a timely manner and for its “true value.” There are two key dimensions of liquidity risk: one, the time required to transact in an asset, and two, the price at which the asset can be bought or sold.

7 0
3 years ago
Read 2 more answers
What is the term for the aesthetic that emerged with technological innovations and through mass media and entertainment, avoidin
Schach [20]

Group of answer choices.

a. Avant-Garde

b. Zeitgeist

c. Modern

d. Post-Modern

Answer:

c. Modern.

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

According to the economist Philip Kotler in his book titled "Marketing management" he stated that, there are five (5) levels of a product. This includes;

1. Core benefit.

2. Generic product.

3. Expected product.

4. Augmented product.

5. Potential product.

The core benefit of a product can be defined as the basic (fundamental) wants or needs that is being satisfied, met and taken care of when a customer purchase a product.

Innovation typically involves the creation of a new product of any category such as automobile, building, phones, electronics, etc., that generates money for the innovators or manufacturers through purchase made by the end users (consumers).

Modern is the term used to describe an aesthetic (artistic goods or products) that emerged with technological innovations and through mass media and entertainment, avoiding any reference to past fashion, instead focusing on sleekness, banishment of frills, functional details, and performance and technical fabrics.

This ultimately implies that, the product isn't obsolete in nature but designed and developed to meet new tastes.

4 0
2 years ago
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