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Lerok [7]
2 years ago
9

Adams Corporation owns and operates two manufacturing facilities, one in State X and the other in State Y. Due to a temporary de

cline in the corporation’s sales, Adams has rented 20% of its Y facility to an unaffiliated corporation. Adams generated $1,000,000 net rental income and $5,000,000 income from manufacturing. ​ Adams is incorporated in Y. For X and Y purposes, rental income is classified as allocable nonbusiness income. By applying the statutes of each state, Adams determined that its apportionment factors are .65 for X and .35 for Y. ​ Adams’s income attributed to X is:
Business
1 answer:
pogonyaev2 years ago
3 0

Answer:

$3,250,000

Explanation:

First of all, we need to remember that Adams' rent corresponds to 20% of the Y installation, the net rent is $ 1,000,000 and the manufacturing revenue is $ 500,000.

The first step in this calculation is to find the total taxable income. This can be found by calculating: 1000000 + 5000000 = $ 6000000.

The second step is to find the shared revenue, for that it will be necessary to subtract the total taxable income from the allocated revenue. Through the calculation: 6000000-1000000 = $ 5000000.

Now, we have reached the end of the calculation and we must find the value of the revenue distributed to state X. This revenue is equal to 65% of 5000000, which is equal to 3250000.

In summary, $ 3250000 is taxable in State X

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Suppose Stuart Company has the following results related to cash flows for 2021: Net Income of $5,600,000 Increase in Accounts P
seropon [69]

1. The statement of cash flows of Stuart Company for the year ended December 31, 2021, is as follows:

Stuart Company

<h3>Statement of Cash Flows</h3>

For the year ended December 31, 2021,        $'000

Net Income                                                     $5,600

Depreciation                                                      1,900

Other Adjustments                                            (800)

Increase in Accounts Payable                           600

Decrease in Accounts Receivable                    900

Increase in Inventory                                        (200)

Net Cash Flow from Operating Activities $8,000

2. The Net Cash Flow from Operating Activities for Stuart Company for 2021 is <u>$8 million</u>.

<h3>What are operating activities' cash flows?</h3>

The cash flows from the operating activities section affect revenues and expenses.

They indicate the cash flows that originate from the regular business activities of the entity.

To prepare the statement of cash flows, the first items to adjust the net income are the non-cash expenses and losses and revenues and gains.

Learn more about the operating activities section at brainly.com/question/25530656

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8 0
2 years ago
the common stock and debt of northern sludge are valued at $64 million and $36 million, respectively. investors currently requir
kozerog [31]

The expected return on the common stock should decrease.

To calculate the new expected return on the common stock, we need to calculate the new value of the common stock and debt. The new value of the common stock is $64 million + $16 million = $80 million. The value of the debt is reduced by $16 million to $20 million.

The new expected return on the common stock is 16.6% * ($80 million/$96 million) = 15.63%.

Therefore, the expected return on the common stock should decrease from 16.6% to 15.63%.

A security that symbolises ownership in a firm is called common stock. Common stock owners choose the board of directors and cast ballots for corporate rules. Long-term rates of return are often higher with this type of stock ownership.

To know more about stock here

brainly.com/question/14040903

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4 0
1 year ago
Most global firms find it is better to have expatriates rather than local staff at the management positions of their foreign ope
pshichka [43]

Answer:A True most global firms find it is better to have expatriates rather than local staff at management positions to their foreign operations because expatriates require less training and development.

8 0
3 years ago
In its statement of cash flows issued for the year ending September 30, Berne Company reported a net cash inflow from operating
Dafna1 [17]

Answer:

B. $29,000

Explanation:

The cashflow from operating activities is calculated as below:

Cashflow from operating activities = Net income + Depreciation - Working capital investment

                                                          = Net income + Depreciation - (Change in inventories + Change in account receivables - Change in account payables)

Putting all the number together, we have:

123,000 = Net income + 38,000 - [(-27,000) + 31,000 - 48,000 - 12,000),

Solve the equation we get Net income = 29,000.

5 0
3 years ago
The last custodian of the petty cash fund was hospitalized and you have been asked to take stock of the fund and replenish it. W
Arlecino [84]

Answer:

                               General Journal

Accounts Titles and Explanation          Debit     Credit

Office supplies                                        $295

Advertising expense                               $120

Transportation expense                          $75

<em>Cash short and over                                $11 </em>

Cash ($800 - $299)                                                 $501

(Being replenishment of fund recorded)

5 0
3 years ago
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