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IgorLugansk [536]
3 years ago
9

Bruin Company reports current E&P of $200,000 in 20X3 and accumulated E&P at the beginning of the year of $100,000. Brui

n distributed $400,000 to its sole shareholder on January 1, 20X3. How much of the distribution is treated as a dividend in 20X3?
A. $400,000
B. $300,000
C. $200,000
D. $100,000
Business
1 answer:
Kipish [7]3 years ago
6 0

Answer:

B. $300,000

Explanation:

For computing the dividend, the computation is shown below:

= Current E&P + accumulated E&P at the beginning of the year

= $200,000 + $100,000

= $300,000

The dividend is $300,000 which is less than the distributed amount i.e $400,000 So, the distribution of dividend is only $300,000 ,not the $400,000 and the same is considered.

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Evaluate how a change in consumer incomes will affect the demand
dalvyx [7]

Answer:

They will be less likely to rent an apartment and more likely to own a home. A product whose demand falls when income rises, and vice versa, is called an inferior good. In other words, when income increases, the demand curve shifts to the left.

For normal economic goods, when real consumer income rises, consumers will demand a greater quantity of goods for purchase. ... When nominal income increases without any change to prices, this means consumers can purchase more goods at the same price, and for most goods, consumers will demand more.

Explanation:

8 0
2 years ago
According to MM proposition II, as debt increases. the firm's return on assets remains constant even while its return on equity
MissTica

Answer:

<u>decreases</u>

Explanation:

As per modigliani- miller approach, the value of a firm is not dependent upon the choice of capital structure of the firm.

Capital structure refers to the the blend or mix of different sources of capital a firm avails to raise funds. Such as debt and equity.

As per MM proposition 2, the expected yield of a stock is equal to equity capitalization rate plus an additional compensation for risk assumed by employment of debt in the capital structure due to which the debt-equity ratio rises.

As proportion of debt is increased in the capital structure, the earnings available to stockholders rise but this rise is offset by the rise in the expectation of shareholders which offsets the effect and thus value of firm remains the same.

Return on equity is given by  \frac{net\ income}{stockholders\ equity}

Thus, as the return on equity increases , the amount of equity in capital structure decreases as this net income rises owing to employment of more and more debt in the capital structure.

4 0
3 years ago
May a broker subtract desk expenses from an independent contractor's commission check?
Pavel [41]

Sales representatives and brokers should work under a signed labor agreement that may or may not permit broker deductions.

How Do Brokers Work?

A broker is a person or business that stands between a potential investor and a securities exchange. Individual traders and investors require the services of exchange members since securities exchanges only accept orders from people or companies who are members of that exchange.

Brokers offer that service and are paid in a variety of methods, including commissions, fees, or payments from the exchange itself. To assist investors in deciding which broker is best for them, Investopedia routinely examines all of the major brokers and keeps a list of the top online brokers and trading platforms.

to know more about broker

brainly.com/question/17011472

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7 0
1 year ago
It is a good idea to get and use an many credit cards as possible to build credit history. True False
Ivenika [448]
False because you can get bad credit if you ever owe the bank money or if you made a late payment
6 0
3 years ago
Assume the Residential Division of KappyKappy Faucets had the following results last year:
Alex_Xolod [135]

Answer:

12%

Explanation:

Calculation for the division's return on investment

Using this formula

Return On Investment = Operating income /Average total assets

Let plug in the formula

Return on investment= $636,000/$5,300,000

Return on investment= 0.12*100

Return on investment=12%

Therefore the division's return on investment will be $12%

6 0
3 years ago
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