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Alik [6]
3 years ago
13

Rayburn owns all the shares of Newcastle Corporation, which operates as an S corporation. Rayburn's basis in the stock is $15,00

0. During the year, he receives a cash distribution of $22,000 from Newcastle. What must Rayburn and Newcastle report as income from the cash distribution?
Business
1 answer:
maksim [4K]3 years ago
7 0

Answer:

$7,000 $-0-

Explanation:

For Rayburn to know what to record from the cash distribution, he will need to subtract his basis in the stock from the cash distribution he receives

Therefore $22 000 - $15 000 = $7 000.

And Newcastle has no income =$-0-

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deff fn [24]

Answer:

$181,818,181.82

Explanation:

The computation of the current value of this firm is shown below:

= (Firm expectation to earns in cash) ÷ (discount rate - increased cash earning percentage)

= ($10,000,000) ÷ (7.5% - 2%)

= ($10,000,000) ÷ (5.5%)

= $181,818,181.82

In order to find out the current value, we considered all the given information that are mentioned in the question

3 0
3 years ago
If you collect personal information about your customers, what should you do? a. tell customers how you will use and protect the
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Information regarding Contacts Being aware of the best ways to get in touch with your customers is essential for establishing productive business relationships.Make sure to get their mailing addresses, cell phone numbers, email addresses, and home phone numbers.

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Protecting your business means safeguarding the personal information of your customers.You can safeguard your brand and market value, your reputation, and yourself from costly lawsuits by protecting customer privacy.

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3 0
1 year ago
A tariff is a trade barrier that:
Brut [27]
Tariffs raise the price of imported goods relative to domestic goods (good produced at home).
6 0
3 years ago
Read 2 more answers
Leone thinks that because her employee Josef went to an Ivy League college he is very knowledgeable, and she always asks his opi
lina2011 [118]

Answer:

self-fulfilling prophecy

Explanation:

Based on the information provided within the question it can be said that in this scenario a self-fulfilling prophecy has occurred. This term refers to when an individual causes a prediction to come true by unintentionally adjusting their behavior and action in such a way that makes that prediction come true. Which is what is happening in this scenario since Leone thinks that Josef is good at investing, it makes Joesef read up and become good at investing.

3 0
4 years ago
Suppose Megan gets a sales bonus at her place of work that gives her an extra $400 of disposable income. She chooses to spend $3
kicyunya [14]

Answer:

0.75, 0.25

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With an increase in disposable income marginal propensity to consume increase. Similarly, with an increase in disposable income marginal propensity to save increases. Marginal propensity to save is the amount of money saved or kept after a fraction increase in overall disposable income.

MPC = 300/400=0.75

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