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Aleks [24]
3 years ago
14

On January 2, 2016, Tim loans his S corporation $10,000. By the end of 2018, Tim's stock basis is zero, and the basis in his not

e has been reduced to $8,000. During 2019, the company's operating income is $10,000. The company makes 2019 distributions to Tim of $8,000. Tim reports a(n):
a. $2,000 LTCG.
b. $8,000 LTCG.
c. Stock basis of $2,000.
d. Loan basis of $10,000.
Business
1 answer:
UNO [17]3 years ago
8 0

Answer:

Option B is correct one.

<u>$8,000 LTCG</u>

Explanation:

The company makes 2019 distributions to Tim of $8,000. Tim reports a(n) <u>$8,000 LTCG.</u>

It is held more than one year. LTCG will be the distribution over the stock basis. Here the stock basis is 0.

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Answer:

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8,48%

Explanation:

To find the IRR it's necessary to know which is the discount rate that applied to the cash flow of the assets gives a value that compensate the investment of $200,500.

Year 1   $100.000  / (1+0,0848)^1    =  $92.182    

Year 2   $100.000  / (1+0,0848)^2  =  $35.690  

Year 3   $100.000  / (1+0,0848)^3  =   $41.398  

Year 4   $100.000  / (1+0,0848)^4  =   $31.230  

Total Present Value of Cash  Flow=

$92.182  + $35.690 + $41.398 + $31.230 =  $200,500

There is no way to find the IRR without Excel, the only way is to try with different rates in the current cash flow formula.

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3 years ago
Explain the importance of profit to the economy.
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Answer:

Explanation:

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​Jack's gross pay for the week is . His yeartodate pay is under the limit for OASDI. Assume that the rate for state and federal
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