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VMariaS [17]
3 years ago
6

In the current year, Crimson, Inc., a calendar C corporation, has income from operations of $180,000 and operating deductions of

$225,000. Crimson also had $30,000 of dividends from a 15% stock ownership in a domestic corporation. Which of the following statements is correct with respect to Crimson for the current year? a. Crimson’s NOL is $15,000. b. A dividends received deduction is not allowed in computing Crimson’s NOL. c. The NOL is carried back 3 years and forward 10 years by Crimson. d. Crimson’s dividends received deduction is $21,000. e. None of the above.
Business
1 answer:
Sergeu [11.5K]3 years ago
5 0

Answer:

The answer is: D) Crimson’s dividends received deduction is $21,000

Explanation:

The dividends received deduction (DRD) allows a company that earns dividends from another company, to deduct those earnings (dividends) from its income tax.

The three tiers of possible deductions are:

  1. If the company owns ≤20% of the second company, it can deduct 70% of the dividends received.
  2. If the company owns ˃20%  but ≤80% of the second company, it can deduct 80% of the dividends received.
  3. If the company owns ˃80% of the second company, it can deduct 100% of the dividends received.

Since Crimson owned 15% of the second company, then it can deduct 70% of the dividends it received, which equals $21,000 ($30,000 x 70%).

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Which of the following statements about the theory of sustainability is true?a. Sustainability is the idea that socially respons
hammer [34]

Answer:

The correct answer is option A.

Explanation:

Sustainability can be basically defined as the ability to last constantly.

The theory of sustainability tries to describe a type of society and economy that is long lasting and can be lived on a global scale.

Sustainability in business is the proposition that if the companies act responsibly towards the environment and the society, they will be able to outperform their  peers. When they focus on the world's problems and see them as marketing opportunities they will be able to perform better than their peers.

8 0
3 years ago
When Galaxy Ventures, a real estate company, entered the low-cost housing business, the market was already saturated with other
GenaCL600 [577]

Answer:

The answer is Late-mover disadvantages

Explanation:

A late mover is a company that enters a business some time after the business pioneers and early followers.

From the question above, Galaxy Ventures is a late mover in the low-cost housing business. They were at a huge disadvantage, and this includes:

  • First of all, lack of customer loyalty and substantial dividends (from the question).
  • The pioneers and early followers can set the business standards which may be difficult for a late mover to follow.
  • The pioneer can easily create entry barriers that a late-mover might find difficult to break.

3 0
3 years ago
Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as many as ______ properties.
kolbaska11 [484]

Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as many as 140 (100%) properties.

<h3>What is a deed restriction?</h3>

This is the term that is used to refer to the written agreements that are done in order to restrict and limit activities that may go on in a property.

These are private agreements that are made. It has to be 100 percent on the properties.

Read more on deed restrictions here:

brainly.com/question/4510408

#SPJ1

4 0
2 years ago
Read 2 more answers
If the Fed purchases government securities from a commercial bank, which of the following will happen?a.The Fed will increase th
solniwko [45]

Answer:

The correct answer is letter "E": "A" and "B".

Explanation:

In order to accomplish its monetary policy, the Federal Reserve (<em>Fed</em>) buys and sells securities in the open market to control the money supply. If there is more money supply in the open market, loan rates will decrease allowing investors to access more capital. At the same time, the Fed reserves and assets will increment.

3 0
2 years ago
​Belstone, Inc. is a merchandiser of stone ornaments. It sold​ 15,000 units during the year. The company has provided the follow
Georgia [21]

Answer: $200,100

Explanation:

Given that,

Units sold = 15,000

Sales Revenue = $510,000

Purchases​ (excluding Freight​ In) = $310,500

Selling and Administrative Expenses = $36,000

Freight In = $15,900

Beginning Merchandise Inventory = $42,500

Ending Merchandise Inventory = $59,000

Cost of goods sold = Beginning Merchandise Inventory + Purchases​ + Freight In - Ending Merchandise Inventory

                                = $42,500 + $310,500 + $15,900 - $59,000

                                = $309,900

Gross Profit = Sales Revenue - Cost of goods sold

                    = $510,000 - $309,900

                    = $200,100

8 0
3 years ago
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