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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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You purchase a bond with an clean price of $1,129. The bond has a coupon rate of 10 percent, and there are 4 months to the next
marta [7]

Answer:

The answer is "1145.66".

Explanation:

Using formula:

\text{Dirty price = Clean price + accrued interest}\\\\

                  = 1,129 +100\times 0.5\times \frac{2}{6} \\\\= 1,129 +50\times \frac{2}{6} \\\\= 1,129 + \frac{100}{6} \\\\= \frac{6774+100}{6} \\\\= \frac{6874}{6} \\\\=1145.66

OR

=\$1,129+(10\% \ of\ 1000)\times \frac{2}{12}\\\\=\$1,129+(\frac{10}{100} \times \ 1000)\times \frac{2}{12}\\\\=\$1,129+(100)\times \frac{2}{12}\\\\=\$1,129+ \frac{200}{12}\\\\=\$1,129+ 16.666667\\\\=\$1,145.666667\\\\

8 0
3 years ago
How has persuasion changed in the digital age?
Gnesinka [82]

Answer:

Explanation:

Persuasion has changed a lot in the digital age, based on the options listed, the ones that are true would be ...

c. Persuasive messages spread at warp speed

d. All businesses are in the persuasion business

e. The volume and reach of persuasive messages have exploded

The internet and social media have allowed businesses to quickly and easily target millions of individuals around the world. So it is no wonder that all businesses are in the persuasion business. Persuasive techniques are able to spread incredibly fast from person to person, as well as word of mouth if enough individuals begin to like your product/service. The internet and social media even allow businesses to target specific categories on populations.

7 0
3 years ago
A restaurant chain hires two new restaurant managers. One manager is a woman, and one is a man. Both candidates are equally qual
slava [35]

Answer:

Equal Employment Opportunity Commission

Explanation:

The entity that would be involved in this case is the the EEOC. That is the equal employment opportunity commission. The violation that has occurred here is that both the man and the woman are equally qualified for this job but the owner wants to pay the woman a smaller salary compared to what he wants to pay the man. The EEOC handles such matters of discrimination to employees and workers based on gender, race, religion etc.

8 0
3 years ago
Alexandria's Dance Studio is currently an all-equity firm with earnings before interest and taxes of $338,000 and a cost of equi
andreyandreev [35.5K]

Answer:

$1,306,986

Explanation:

Calculation to determine What is the levered value of the equity

First step is to calculate the VL

VL = {[$338,000 × (1 - .34)] / .142} + (.34 × $400,000)

VL= $1,706,986

Now let calculate the levered value of the equity (VE)

VE = $1,706,986 - $400,000

VE = $1,306,986

Therefore the levered value of the equity is $1,306,986

8 0
3 years ago
NeNe is an accountant and a U.S. citizen who has accepted a permanent position in Madrid, Spain, for a Spanish financial service
s2008m [1.1K]

Question options:

a) NeNe can exclude all of the housing payment because she worked more than 330 days overseas

b) 16,128

c) 23,872

d) 14,112

e) None of her salary can be excluded from gross income

Answer:

a) NeNe can exclude all of the housing payment because she worked more than 330 days overseas

Explanation:

US citizens working and living abroad would still have to remit taxes to the US, albeit with exclusions.

Under US tax law, IRS states that US citizens may deduct/exclude the value of meal and lodging expenses granted to them by the employer. Under the foreign housing exclusion, Nene qualifies for the benefits of housing exclusion because she has a foreign earned income and has lived at least 330 days within a period of 12 consecutive months in the foreign country.

4 0
3 years ago
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