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a_sh-v [17]
3 years ago
15

Whindy Corporation, an S corporation, reports a recognized built-in gain of $80,000 and a recognized built-in loss of $10,000 th

is year. Whindy holds an $8,000 unexpired NOL carryforward from a C corporation year. Whindy's ordinary income for the year is $65,000. Assume a corporate tax rate of 21%.Calculate any built-in gains tax.
Business
1 answer:
mihalych1998 [28]3 years ago
4 0

Answer:

Built-in gains tax is $13,020 .

Explanation:

The built-in gains tax is one levied against an S corporation that used to be a C corporation, or received assets from a C corporation.  

Here,

Gain= $80,000

Loss= $10,000

Holds= $8,000

Income= $65,000

Corporate tax= 21%

To calculate the built-in gains tax, we will need to calculate the net gain of the corporation and multiply it by the tax rate.

= Built-in-gain - built-in-loss - unexpired NOL

80,000 - 10,000 - 8,000 = 62,000

Then

62,000 x 0.21 tax rate = 13,020

= 13,020

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What is the present value of 10 equal payments of $16,500 to be made at the end of each year for the next 10 years?
fiasKO [112]

Answer:

$101,385

Explanation:

The question is incomplete. The complete question can be found here- https://www.chegg.com/homework-help/questions-and-answers/present-value-10-equal-payments-16-500-made-end-year-next-10-years-annual-interest-rate-10-q41891258

Here is the complete question - What is the present value of 10 equal payments of $16,500 to be made at the end of each year for the next 10 years? The annual interest rate is 10%. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.

The present value of cash flow can be found by discounting the present value of the cash flow by 10%

This can be found using a financial calculator:

Cash flow for year 1 - 10 = $16,500

I =10%

Present value = $101,385

I hope my answer helps you

6 0
3 years ago
The property tax on a rental house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charge
MAXImum [283]

Answer:

Both will bear

Explanation:

Both Mr. Janey and Ms. lacey will bear the incidence of the property tax increase because Mr. Janey has only shifted $540 ( $45 x 12) of the total $1200 by increasing the monthly rent charge of his tenant Ms. lacey by $45/month. Mr. Janey will pay only $660 of $1200 increase in tax and remaining will be paid by Mr Lacey.

6 0
3 years ago
Nicole owns and operates two restaurants. The revenue of the first restaurant at time t is f(t) dollars, and the revenue of the
kati45 [8]

Answer:

F(t)=f(t)+g(t) represents the TOTAL revenue at time t.

Explanation:

f(t) is the revenue at the time t at the first restaurant.

g(t) is the revenue at the time t at the second restaurant.

If we want to know the TOTAL revenue at the time t, we would sum these quantities:

TOTAL revenue = f(t)+g(t)

So F(t)=f(t)+g(t) represents the TOTAL revenue at time t.

7 0
3 years ago
Which of the following types of business environment is MOST typical of the Commonwealth Caribbean
charle [14.2K]
Which of the following types of business environment is MOST typical of the Commonwealth Caribbean area?
a) Corporate state
b) Mixed economy
c) Centrally planned
d) Perfectly competitive


Answer is b) Mixed economy
3 0
3 years ago
A firm has an issue of preferred stock outstanding that has a stated annual dividend of $4. The required return on the preferred
snow_lady [41]

Answer:

$64

Explanation:

A firm has an annual dividend of $4

The required return is 16%

Therefore the value of the preferred stock can be calculated as follows

= 16/100 × 4

= 0.16 × 4

= 0.64 ×100

= $64

Hence the value of the preferred stock is $64

4 0
3 years ago
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