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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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Based on the corporate valuation model, the total corporate value of Chen Lin Inc. is $500 million. Its balance sheet shows $110
solmaris [256]

Answer:

The best estimate of its stock price per share is $11.20

Explanation:

To compute stock price per share, the equation is shown below:

= Total number of equity ÷ Outstanding number of shares

where,

Total number of equity = Total corporate value - Notes payable - long term debt - preferred stock

= $500 - $110 - $90 - $20

= $280 million

And , outstanding number of shares is 25 million shares

Now, apply the above equation

So, stock price per share = $280 million ÷ 25 million shares = $11.20

Other accounts like retained earnings, total common equity is irrelevant

Hence, the best estimate of its stock price per share is $11.20

6 0
3 years ago
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:_____
mars1129 [50]

Answer:

The profit margin controllable by the Central Valley segment manager is:  $ 95,000.

Explanation:

Only items directly controllable by the Manager should be included in the divisional financial performance measure.

<u>Central Valley Division</u>

Revenues                                         $ 405,000

Less Variable Costs :

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Less Controllable fixed expenses   ($80,000)

Controllable Profit                             $ 95,000

3 0
3 years ago
​Rachel's Beach Shoppe charges tourists to use their credit cards to purchase merchandise at the vacation store. On​ Monday, Rac
olga2289 [7]

Answer:

$1,479

Explanation:

For computing the total deposit, first we have to determine the bank charges which is shown below:

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= $1,500 - $21

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Simply we deduct the bank charges from the Merchandise sold so that the correct amount can come.

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3 years ago
at land rover, voluntary discussion groups of 4 to 12 employees met weekly to identify cost savings, improve product quality, an
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Explanation:

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i hope i help you

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3 years ago
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