1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bekas [8.4K]
3 years ago
10

Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31. Cody's basis in

his stock is $20,000, Holbrook's AAA balance is $8,000, and Holbrook holds $2,500 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $15,000 is from AAA and AEP as well as how Cody's stock basis is affected.
Business
1 answer:
insens350 [35]3 years ago
6 0

Answer:

AAA account balance after distribution is

0

AEP account balance after distribution is

0

Cody’s stock basis $7,500

Explanation:

AAA account

Distribution from Account

8,000 not taxable

Effect on Stock Basis

(8,000)

Balance after Distribution

0

AEP account

Distribution from Account

2,500 is not a taxable dividend and it does not tend to affect stock basis because it is from a previous C-corporation

Effect on Stock Basis

0

Balance after Distribution

0

Cody’s stock basis

Distribution from Account

4,500 not taxable

Effect on Stock Basis

(4,500)

Balance after Distribution

20,000-8,000-4,500= $7,500

You might be interested in
What is the first sentance of an introduction called​
Rus_ich [418]
The first sentence of an introduction is called a hook
5 0
3 years ago
How much should you pay for a share of stock that offers a constant growth rate of 13%, requires a 18% rate of return, and is ex
marin [14]

Answer:

$44.25

Explanation:

<u>procedure 1:</u>

we can determine the present value of the stock using the following formula:

present value = future value / (1 + constant growth rate)ⁿ

  • future value = $50
  • constant growth rate = 13%
  • n = 1

present value = $50 / (1 + 13%) = $50 / 1.13 = $44.25

<u>procedure 2 (optional):</u>

future value = future dividend / (required rate of return - constant growth rate)

$50 = future dividend / (18% - 13%)

future dividend = $50 x 5% = $2.50

now we must determine the dividend for the current year:

current dividend = future dividend / (1 + constant growth rate)

current dividend = $2.50 / (1 + 13%) = $2.50 / 1.13 = $2.21

now we apply the Gordon growth model:

present value = dividend / (required rate of return - constant growth rate)

present value = $2.21 / (18% - 13%) = $2.21 / 5% = $44.25

5 0
2 years ago
Intellectual property protection, nondisclosure agreements, assignments of inventions and, covenants not to compete and license
Tresset [83]

Answer:

The correct answer is b. Technology development.

Explanation:

Technological development is defined as the systematic use of knowledge and research directed towards the production of materials, devices, systems or methods including the design, development, improvement of prototypes, processes, products, services or organizational models.

Starting from the fact that technological knowledge is essentially composed of technical information, know-how, inventions, guides, manuals, procedures, among other intangible elements, before which, intellectual property comes to play a decisive role in the protection and management of These elements of an intangible nature, and therefore, knowledge-generating institutions such as universities, increasingly resort to intellectual property to understand what kind of intangible intellectual property assets exist in their technology, how to manage them during the transfer process, and of course having the necessary control to be able to monetize them, that is, to obtain profit through their exploitation.

4 0
2 years ago
Which would you use to estimate the demand for a product at various prices?
Oxana [17]

Answer:

A demand chart is a graph which shows the relationship between the quantity demanded of a good or product and the prices which the consumer are willing to pay over a specified period of time. It reveals the law of demand which states that quantity demanded increase as price decreases and vice versa.

4 0
3 years ago
with reference to relevant legislation , case law, and secondary sources briefly explain different functions of taxation
svetlana [45]

Answer:

Tax is a statutory obligation to pay an amount to the state or other public body, which is imposed on a person or company on the basis of their activities, without a direct connection to consideration from the payee. The main purpose is usually to finance the public sector. The tax can also have other purposes, such as equalizing income or influencing people's actions with the help of financial incentives.

8 0
3 years ago
Other questions:
  • What are environmental trends?
    11·1 answer
  • Kate recently invested in real estate with the intention of selling the property one year from today. she has modeled the return
    5·1 answer
  • The CEO of Dave's firm just came back from a business seminar. He called Dave into his office and stated, "I just found out abou
    9·1 answer
  • Seadrill Engineering sold software to oil-drilling firms. In addition to providing the software, the company also provides consu
    7·1 answer
  • When maggie joined techno-nerds, inc., she automatically joined an employee team. team members each had base salaries, but they
    5·1 answer
  • Rob operates a small plumbing supplies business as a sole proprietor. In 2018, the plumbing business has gross business income o
    15·1 answer
  • A firm must know where to position its product based on price and ________. promotional efforts communication quality region
    5·1 answer
  • Rice Industries owns a manufacturing plant in a foreign country. Political unrest in the country indicates that Rice should inve
    9·1 answer
  • g Todd Foley is applying for a $210,000 mortgage. He can select either a $1,470 monthly payment with no points or a $1,323 payme
    10·1 answer
  • ICS Fullscreen GC BMC KNOWLEDGE CHECK Outline Trans Below is a chart illustrating global trade patterns in 2018. Which of the fo
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!