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Debora [2.8K]
3 years ago
9

You are a shareholder in a C corporation. The corporation earns $ 1.86$1.86 per share before taxes. Once it has paid taxes it wi

ll distribute the rest of its earnings to you as a dividend. Assume the corporate tax rate is 40 %40% and the personal tax rate on​ (both dividend and​ non-dividend) income is 28 %28%. How much is left for you after all taxes are​ paid?
Business
1 answer:
Over [174]3 years ago
6 0

Answer:

After all taxes being paid net dividend received = $0.80352

Explanation:

As for the provided information we have,

Earnings per share before taxes = $1.86

Now, provided corporate dividend tax rate = 40%

Therefore, earnings per share after tax = dividend received = $1.86 - $1.86 \times 40% = $1.86 - $0.744 = $1.116

Provided tax rate in hands of individuals = 28%

After tax dividend, that is net dividend received = $1.116 - ($1.116 \times 28%) = $1.116 - $0.31248 = $0.80352

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Determine the single plantwide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (
Fofino [41]

Answer and Explanation:

1.

The direct labor overhead rate using the direct labor hours is shown below:-

Direct labor overhead rate = Total overheads ÷ Direct labor hours

= $220,800 ÷ 1,725

= $128

b. The machine hour overhead rate using the machine hours is

= Total overhead ÷ Machine hours

= $220,800 ÷ 4,600

= $48

2.

The factory overhead costs using direct labor hour is

Particulars             Automobile       Valve        Wheels        Total

                                bumpers           covers

Direct labor            

hours                        730                 480                515

Overhead rate         $128               $128              $128

Total                        $ 93,440        $61,440        $65,920     $220,800

For determining the total overhead we simply multiply the direct labor hours with overhead rate.

The factory overhead costs using machine hour is

Particulars             Automobile       Valve        Wheels        Total

                                bumpers           covers

Machine hours          1,970               1,270         1,360

Overhead rate            $48                  $48              $48

Total overhead        $94,560         $60,960    $65,280      $220,800

For determining the total overhead we simply multiply the machine hours with overhead rate.

7 0
3 years ago
What are the practical consequences of a lack of strategic linkage between the business and the operations function? give exampl
Ivenika [448]
The practical consequences that result of lack strategic linkage between business and operations functions are it will know the organization if it is a success or a failure. The lack of linkage can also cause people trap and busy with all kinds of activities. For example, in the company, you work as a team and you have the quota but the people inside the team didn’t get the proper linkage so the team will fail the task that given to them because of lack of strategic linkage.
8 0
3 years ago
A company has a market capitalization of $20,000,000. It has 30% of its market cap sold under preferred stock and 70%
Kruka [31]

Answer: $6,000,000

Explanation:

Hi, to answer this question we simply have to multiply the total market capital of the company (20,000,000) by the percentage under preferred stock (30%) in decimal form.

Mathematically speaking:

20,000,000 x (30/100) = $6,000,000

Feel free to ask for more if needed or if you did not understand something.  

6 0
3 years ago
Q 4.35: McGinnis Construction is a cash-basis company with a fiscal year-end of June 30. McGinnis’ employees earn a normal weekl
hjlf

Answer: Understatement, $30,900

Explanation:

There will be an UNDERSTATEMENT of McGinnis' net income for the most recent fiscal year of $30,900.

The Understatement arises because as of year end which is June 30th, McGinnis were not paid for their services that cost $40,900 and instead will only be paid on the 8th of the next month so it was not accounted for in the net income.

The reason the net income understatement is $30,900 and not $40,900 is because McGinnis will still have to account for the payment to it's employees. If in a five day week they earn $12,500, that would mean that they earn $2,500 a day (12,500/5). Seeing as June ended on a Thursday, that is a 4 day week which means $2,500*4= $10,000.

That $10,000 will reduce the net income by that amount.

The net effect is a $30,900 UNDERSTATEMENT.

4 0
3 years ago
What is B2B marketing?
andrew11 [14]

Answer:

Explanation:  As the name suggests, business-to-business marketing refers to the marketing of products or services to other businesses and organizations. It holds several key distinctions from B2C marketing, which is oriented toward consumers.

6 0
3 years ago
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