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enyata [817]
3 years ago
8

Omar, an individual in the 37% tax bracket, wants to shift some of his income to a new corporation in order to take advantage of

the 21% corporate tax rate. Omar plans to avoid any tax on dividends by retaining all earnings within the corporation. Will Omar's plan work?
Business
1 answer:
Dovator [93]3 years ago
7 0

Answer:

Omar's plan of retaining earnings can work depending on the liquidity preference of the shareholders.

If the shareholders have interest in short-term liquidity benefit (i.e. dividend), then his plans might be frustrated and vice versa.

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Montana Company was authorized to issue 150,000 shares of common stock. The company had issued 69,000 shares of stock when it pu
chubhunter [2.5K]

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a

Explanation:

6 0
2 years ago
Steve recommends that employees should be compensated according to their competencies, rather than their designations. Employees
astra-53 [7]

Answer:

d. skill-based pay system

Explanation:

Skill-based pay system is when the amount paid to an employee is linked to the employees skills, education or knowledge.

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5 0
3 years ago
How does a merchandising business act as a collection agency for the state government?
ExtremeBDS [4]

Answer:

Charging Sales tax

Explanation:

Merchandising business is the kind of business, that buys or purchases the finished products and then resells them to the customers.

So, the merchandising business could act as a collection agency for the government through charging the sales tax. There is need to remit the government after collecting the tax and when it is done, the business will decrease the cash and the sales tax liability.

And it is the lability to the government until it is remitted by the business.

5 0
2 years ago
In 2006, selected new automobiles had an average cost of $16,000. The average cost of those same automobiles is now $28,000. Wha
larisa [96]

Answer:

Explanation:

%increase is given as = increase/ original prices ×100

Increase = new cost - original cost

The original average cost is $16000,

And the new average cost is $28,000

Then,

Increase = 28000-16000

Increase =$12,000

Then,

%increase=increase/original cost ×100

%increase = 12000/16000 ×100

%increase=75%

The rate of increase of the automobile cost is 75%

7 0
3 years ago
Albert decided that it was time to invest his money. he was quite excited and told his friends about his new financial venture.
NemiM [27]
Financial venture. even his wife was supportive. albert liked a number of riskier company
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