1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
At December 31, 2016, Finzelberg Company had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2017, Finzel
Setler79 [48]

Answer:. ............$

1. Bad debt Dr. 11.0000

Account receivable Or. 11.000

Narration: Bad debts writing off debtors

2. Cash/Bank. Dr 1800

Profit or loss Cr. 1800

Narration. Bad debt previously written off recovered

3. Profit or loss Dr 4000

Allowance for doubtful debts Cr

4000

Narration. Increase in provision for doubtful debts.

7 0
3 years ago
What is the difference between having a co-signer and becoming an authorized user?
prohojiy [21]

Answer:

The correct answer is letter "D": As a co-signer, you open an account and an adult signs on with you; as an authorized user, you are added to someone’s existing account

Explanation:

Co-signers are individuals that could help others to open a credit card account in case that person does not meet specific credit history requirements but the credit card issuer. Co-signers must be 21 years old. Authorized users are added to the account to request information, change it, or make payments.

8 0
3 years ago
Read 2 more answers
Equipment that was purchased for $900,000 has a current book value of $450,000. Assume a capital gains tax rate of 28%. Compute
natita [175]

Answer:

there is an increase in taxes of $52,192

Explanation:

The computation of the net payment or saving is shown below:

Given that

Book value = $450,000

Sale value = $636,400

since the sales value is more than the book value so here the capital profit is there

Therefore capital profit would be

= $636,400 - $450,000

= $186,400

Now tax would be

= $186,400 × 28%

= $52,192

So there is an increase in taxes of $52,192

7 0
3 years ago
The major factor in deciding how much to purchase is:
Ierofanga [76]
How much the money you have !!!
8 0
3 years ago
Which of the following value chain activities involves assisting users with handling of the products after sale, thus maintainin
aivan3 [116]

Answer: Customer service

Explanation: In simple words, customer service refers to the after sales assistance provided by the company to those individuals who buy their product. It focuses on keeping the customer happy and to maintain positive relationships with them.

This includes teaching customers to use the product, or solving their query or any problem they have with the product etc.

Thus, from the above we can conclude that the right option is B.

5 0
3 years ago
Other questions:
  • TJ's has a market value equal to its book value. Currently, the firm has excess cash of $218,500, other assets of $897,309, and
    5·1 answer
  • The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year, res
    10·2 answers
  • A difference between money issued by colonies and money issued by the continental congress was that money issued by each colony
    9·1 answer
  • Department J had no work in process at the beginning of the period. 18,000 units were completed during the period, and 2,000 uni
    12·1 answer
  • All else being equal, a marketing channel that has a high cost per exposure will have a ________ return on investment.
    9·1 answer
  • Real estate property taxes generally range from 1 to 4 percent of the value of the home.
    13·1 answer
  • Why is nominal value important ?
    9·1 answer
  • (01.02 mc) which of these actions was an economic cause of increased tensions between the north and south?
    11·1 answer
  • Determine the interval(s) on which the function is increasing and decreasing. (enter your answers using interval notation. if an
    8·1 answer
  • Which transaction caused John to overdraw his account?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!