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3 years ago

Which of the following is not a legal restriction related to profit distributions by a corporation?

Business

1 answer:

Mamont248 [21]3 years ago

8 0

Answer:

b. The amount distributed in any one year can never exceed the net income reported for that year.

Explanation:

If the companys had 100,000 net income per year during 10 year

His retained earnings amount will be 1,000,000

Then, suppose next year income is also 100,000

The company is not doing anything wrong if it distribute dividends for 400,000 as their retained earnings can afford this dividends

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A perfectly competitive firm a. has a perfectly inelastic demand. b. has a perfectly elastic supply. c. Answers A and B are corr

den301095 [7]

Answer:

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

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3 years ago

Imagine that you are a pecan farmer in Georgia. If the same trends hold true for nut production as maple syrup production, where

Dimas [21]

Answer:

You be looking to relocate your business to Delaware

Explanation:

Delaware is one of the 50 states of the United States, in the Mid Atlantic region. The weather condition in Delaware is very conducive in growing a maple tree.

8 0

3 years ago

Quanti Co., a calendar-year taxpayer, purchased small tools for $5,000 on December 21, Year 1, representing the company’s only p

Jlenok [28]

Answer: Option A is the right answer

Explanation: Evidences in most cases has shown that MACRS is all about applying convention for one and a half year on assets. So when an entities owns 35-40% of an asset in forth quarter, Mid quarter convention will be applied for only one half of the last quarter, logically one and half month in the last quarter.

6 0

3 years ago

The basic economic problem results from not having enough resources to satisfy every need. a. True b. False

o-na [289]

Answer:

True

Explanation:

Because the less product means less sales and less happy people. Hope this helps.

7 0

3 years ago

Jasmine Company sold $1,000,000 of 6%, 10-year bonds at 97 on January 1, 2020. The bonds were dated January 1, 2020 and pay inte

Snowcat [4.5K]

Answer:

$62,445

Explanation:

Discount on bond payable = ($1,000,000 / 100) x (100-97) = 30,000

Number of period = 2 x 10 = 20

Discount amortized every period = 30,000 / 20 = $1,500

Interest Expense on June 30 = (1,000,000 x 6%/2) + 1500 = $31,500

Principal Payment = $50,000 - $31,500 = $18,500

Outstanding bonds = 1,000,000 - $18,500 = $981,500

Interest Expense on December 31 = ($981,500 x 6%/2) + 1500 = $30,945

Total Interest Expense in 2020 = $31,500 + $30,945 = $62,445

5 0

4 years ago