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Thepotemich [5.8K]
3 years ago
14

"A customer holds 1,000 shares of ABC stock valued at 80 in a margin account. The debit balance in the account is $35,000. ABC d

eclares and pays a 20% stock dividend. The tax consequence of the distribution to the investor will be:"
Business
1 answer:
Sedaia [141]3 years ago
4 0

Answer: Reduction of cost basis per share

Explanation:

It should be noted that Under IRS rules, when stock dividends are being received, they are not taxable at that particular time as shareholders haven't gotten any return from the stock yet.

The Stock dividend will then lead to reduction in cost basis per share. Therefore, based on the scenario in the question, the tax consequence of the distribution to the investor will be reduction of cost basis per share.

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Cook, Inc., a manufacturer of tires, has given you its most recent annual report in an effort to obtain a sizable loan. The comp
Tcecarenko [31]

Answer:

a. Relevant

Explanation:

The documentary on prime time television that brought awareness to Cook Inc... being defendant in several lawsuits relating to it's defective tyres that has caused vehicles to overturn is a financial information that is relevant.

As a financial analyst, being presented with such information is very relevant and it makes me to consider it as a factor before issuing loan to the organization and also help to garner what the public'e perception of the company stock will be. In addition, the information will help to make predictions about future directions of the company's stock price and, evaluate the company's financial health and earnings potential to be able to pay back the loan if given the loan.

6 0
3 years ago
Your uncle has $500,000 and wants to retire. He expects to live for another 30 years and to earn 6.5% on his invested funds. How
Andrei [34K]

Answer:

$38, 288.718

Explanation:

The amount to be withdrawn at the end of each year, for  30 years

The amount of $500,000 represents the present value while yearly withdraws the annuities.

We use a revised formula for calculating annuities.

Applicable formula is

P   = PV × r/( 1 − (1+r)−n

P = annual withdrawals

PV  = $500,000

r = 6.5%

n 30

P = 500,000 x( 0.065/ ( 1- (1 + 0.065) -30)}

p = 500,000 x (0.065/ (1-1+.065)-30)

p= 500,000 x (0.065 / 1-0.1511860661)

P =500,000 x (0.065 /0.848814)

P= 500,000 x 0.076577436

Yearly withdrawals  = $38, 288.718

3 0
3 years ago
The terms of trade reflect the:
WITCHER [35]

Answer:

The correct answer is option b.

Explanation:

The terms of trade is the ratio at which two countries exchange their goods. It is the ratio of exports and imports of a country. Terms of trade reflect the health of the economy.  

It measures the number of goods a country can import in exchange for the goods it is exporting.  

An increase in the price of exported goods will increase the terms of trade for a country. While an increase in the price of imported goods will cause it to decline.

4 0
3 years ago
List 5 store documents pls ASAP​
koban [17]

Explanation:

1. gate pass

2. stock card

3. stock requisition form

4. delivery note

5. stock order form

best regards!!

4 0
3 years ago
In Ben v. City Car Dealership, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a tria
Neporo4naja [7]

Answer:

The correct answer is D

Explanation:

Under the doctrine of the stare decisis, the court will look into the past or the similar issues in order to guide their decisions related to the issues. And the past decisions are referred or acknowledged as the precedent.

Precedent is the principle or rule which is legal and it is established or created by the decision of the court. And this decision become the authority or the example for judging or deciding the similar issues.

Therefore, in this case, the trial court when deciding upon the case of D v E, will likely to allow or permit the minor to cancel the contract or the agreement.

7 0
3 years ago
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