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Alik [6]
2 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]2 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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the bookkeeper for Blue Spruce Equipment Repair made a number of errors in journalizing and posting, as described below. For eac
Sergeu [11.5K]

Answer:

Note: The full question is attached as picture below

                               (a)                   (b)                   (c)  

                                In                                      Larger  

                            Balance      Difference       column

1.                               No               $725             Debit  

2.                             Yes                 NA                NA  

3.                              Yes                 NA                NA  

4.                               No               $225            Credit  

5.                              Yes               $684               NA  

6.                               No                $45             Credit

7 0
2 years ago
Trendy Appliances has introduced a new product, Minute Yogurt, into the yogurt maker appliance market. Minute Yogurt differs fro
forsale [732]

Answer: Informative Advertising

Explanation:

Informative Advertising is a form of advertising where a company gives some details about the benefits of using a product and somethings they do differently from their competitors in the market.

Minute Yoghurt needs to inform their market of the special steps of blending and cleaning they applying when producing their product.

7 0
3 years ago
For a firm in a perfectly competitive​ market, price is
Zigmanuir [339]

Answer:

The correct answer is D. equal to both average revenue and marginal revenue.

Explanation:

A perfectly competitive market or market of perfect competition is that market in which two characteristics are fulfilled:

1) there is a large number of buyers and sellers in such a way that the influence they individually exert on prices is negligible;

2) the goods or services that are exchanged are the same. [Supply and demand] Perfect competition is the situation of a market where companies lack the power to manipulate the price (price-acceptors), and there is a maximization of well-being.

This results in an ideal situation of the goods and services markets, where the interaction of supply and demand determines the price. A perfectly competitive market has the following characteristics: There are many buyers and sellers in the market. The goods offered by different vendors are largely identical. Companies can freely enter and exit the market.

8 0
3 years ago
If there are 100 transactions in a year and the average value of each transaction is $10, then if there is $200 of money in the
trapecia [35]

Answer:

the answer is C:5 how I know: I did it

4 0
2 years ago
Shi Import-Export’s balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common e
Mamont248 [21]

Answer:

Shi Import-Export’s  WACC is 9.44%

Explanation:

WACC is the minimum return that a project MUST  offer before it can be accepted. It shows the risk of the company

<em>Capital Source            Weight         Cost             WACC</em>

Debt                                30%          4.5%               1.35%

Preferred Stock               5%           5.8%               0.29%

Common Equity             65%           12%.               7.80%

Total                              100%                                 9.44%

<em><u>Cost of Debt </u></em>

Cost of Debt = Interest × ( 1-tax rate)

                     = 6% ×  ( 1-0.25)

                     = 4.5%

<em><u>Cost of Preferred Stock</u></em>

Cost of Preferred Stock = 5.8%

<em><u>Cost of </u></em><u>Common Equity</u>

Cost of Common Equity = 12%.

<em><u /></em>

3 0
2 years ago
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