Corporations have a distince advantage over other forms of business organization in the area of taxation. True False

Sandra has good credit and qualifies for a home loan. Sandra's loan could negatively affect her credit score if she _____.

ale4655 [162]

Does not make a down payment

8 0

3 years ago

Windmill Corporation,a Dutch corporation,is owned by the following unrelated persons: 50 percent by a U.S.corporation,5 percent

sveticcg [70]

Answer: Windmill is not a CFC and none of the shareholders will have a deemed dividend under subpart F.

Explanation:

Subpart F income include insurance income, illegal bribes, foreign base company income, international boycott factor income, etc.

It should be noted that Windmill isn't a controlled foreign corporation that is the company isn't a corporate entity which is duly registered and then conducts business in another country that's different from its home country. Therefore, none of the shareholders will have a deemed dividend under subpart F.

4 0

3 years ago

Natcher Corporation collects 35% of a month's sales in the month of sale, 40% in the month following sale, and 20% in the

uranmaximum [27]

Answer: Option (v) is correct

Explanation:

Given that,

Natcher Corporation collects,

35% of a month's sales in the month of sale

40% in the month following sale

20% in the second month following sale

5% of their sales are noncollectable

Budgeted sales are:

August budgeted sales = $250,000

September budgeted sales = $350,000

October budgeted sales = $390,000

November budgeted sales = $230,000

Amount of cash collected in November is budgeted:

= 35% of November sale + 40% of October sale + 20% of September sale

= 35% of $230,000 + 40% of $390,000 + 20% of $350,000

= $80,500 + $156,000 + $70,000

= $306,500

4 0

2 years ago

For which of the following reasons are capital budgeting decisions important to a business organization? Check all that apply. C

Blizzard [7]

Answer:

Options a and b are correct.

Explanation:

Capital investments are relatively inexpensive.

Capital investments have multiyear life spans, so mistakes linger for a long time.

7 0

3 years ago

Read 2 more answers

5 Make versus buy, activity-based costing. The Svenson Corporation manufactures cellular modems. It manufactures its own cellula

zmey [24]

Answer:

See below

Explanation:

Expected manufacturing costs 2018:

Direct materials $170 × 10,000 = $1,700,000

Direct labor $45 per unit × 10,000 = $450,000

Variable overhead per batch 1,500 × 80 = $120,000

Fixed overhead:

Avoidable $320,000

Not avoidable $800,000

1. Calculate that total expected manufacturing cost per unit of making CMCBs in 2018

= $1,700,000 + $450,000 + $120,000 + $320,000 + $800,000

= $3,390,000

Cost per unit = $3,390,000/10,000 units

= $339 per unit

2. Svenson should keep manufacturing the CMCBs

Costs if CMCBs are purchased from Minton = ($300 × 10,000) + $800,000

= $3,000,000 + $800,000

= $3,800,000

It means that the cost of purchasing is $410,000 [ $3,390,000 - $3,800,000] higher than the cost of manufacturing.

5 0

2 years ago