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
andreev551 [17]
3 years ago
11

Copper Corporation, a C corporation, had gross receipts of $25 million in 2015, $26 million in 2016, and $23 million in 2017. Go

ld Corporation, a personal service corporation (PSC), had gross receipts of $24 million in 2015, $27 million in 2016, and $25 million in 2017. Which of the corporations will be allowed to use the cash method of accounting in 2018?
a. Copper Corporation only.
b. Gold Corporation only.
c. Both Copper Corporation and Gold Corporation.
d. Neither Copper Corporation nor Gold Corporation.
e. None of the above.
Business
2 answers:
Aleksandr [31]3 years ago
4 0

Answer:c. Both Copper Corporation and Gold Corporation.

Explanation:Cash accounting is an accounting method in which payment receipts are recorded during the period they are received, and expenses are recorded in the period in which they are actually paid. In other words, revenues and expenses are recorded when cash is received and paid, respectively.

Generally, a small business can use either the overall cash method of accounting or an overall accrual method of accounting. ... The overall cash method of accounting is available for S corporations, partnerships that do not have a C corporation as a partner, and personal service corporations (PSCs).

OLEGan [10]3 years ago
4 0

Answer:

Explanation:

Corporation/businesses that qualify for cash based accounting:

• Individuals

• Service Business

• Custom Manufacturer

• Qualified Personal Service

• Farming Business

A corporation or partnership meets the gross receipts test of this subsection for any taxable year if the average annual gross receipts of such entity for the 3-taxable-year period ending with the taxable year which precedes such taxable year does not exceed $25,000,000.

Average = total earnings in 3 years/3

= ($25 million + $26 million + $23 million)/3

= 24.67 million

$24.67 million is less than $25 million

Therefore, copper corporation meets the criteria for cash based accounting.

Gold corporation is a personal corporation so it also meets rhe criteria for cash based accounting.

You might be interested in
A company that makes modular bevel gear drives with a tight swing ratio for optimizing fork-lift vehicles was told that the inte
Troyanec [42]

Answer:

The APY is 14.9%

Explanation:

To find the annual percentage yield we need to compute the effective annual rate of interest.

The Effective annual rate of return(EAR) is the equivalent rate to be paid where compounding is done frequently at period or interval less than a year.

Compounding implies the regular interval when interest is always computed; in this scenario, it is monthly.

The EAR can be worked out as follows

EAR = ( (1+r)^m - 1 ) × 100

r- interest rate per period

m- number of periods in a year

EAR - Effective annual rate

r = 3.5%/3 = 1.167 % per month

m= number of months in a year = 12

EAR =( 1.01167^12-1)× 100 = 14.9%

The APY is 14.9%

This implies the quoted interest rate of 3.5% per quarter is the same as paying 14.9% per year

5 0
3 years ago
A form of foreign direct investment, where a domestic company purchases a company in a foreign country to produce a similar prod
Sergio [31]

Answer:

c. foreign subsidiary

Explanation:

Foreign subsidiary -

It refers to a company which is partially or completely , part of some large firm , whose main office is located in some other country , is referred to as a foreign subsidiary .

It is a form of foreign direct investment method , where a company purchases any other company , where the company supposed to manufacture , sell or produce the same type of goods and services .

Hence, from the given information of the question,

The correct option is c. foreign subsidiary .

5 0
3 years ago
If workers are more educated, then short-run aggregate supply ___________.
Yakvenalex [24]

Answer:

O will increase and output and price level will increase as well.

Explanation:

If workers are more educated, the productivity of the country will increase, increasing total output. As investment in training increases, so thus the workers' capacity to perform more efficiently. Also, when the demand for better (or more) trained workers increases, the salary level will also increase. As workers gain training and/or experience, their salaries increase, e.g. on average, a person with a college degree earns much more than someone with just a high school degree. This increase in the level of salaries will lead to an increase in the general price level.

5 0
3 years ago
Linke Motors has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market du
anzhelika [568]

Answer:

cost of capital 16%

Explanation:

SML formula:

Ke= r_f + \beta (r_m-r_f)\\\\Where:\\r_f =$ risk free rate\\r_m= $ market rate\\\beta =non-diversifiable \:risk

r_f = 3%

β = 1.3

r_m = 13%

0.03 + 1.3(0.13-0.03)

firm's required return = .16 = 16%

4 0
3 years ago
9.To what part of an industry does a worker's education contribute?
laiz [17]

Answer:

human capital

Explanation:

Human capital is the economic value brought by workers' experience and skills. It is the attributes, abilities, and quality of labor to influence a firm's productivity. Human capital is enhanced through education, training, and work experiences.

Human capital is an intangible asset to a business. Human capital is a critical element if a business is to achieve its goals. Due to this reason, companies are always investing in improving the quality of their human capital.

4 0
3 years ago
Other questions:
  • Gienuine Products Inc. requires a new machine. Two companies have submitted bids, and you have been assigned the task of choosin
    5·1 answer
  • Place the following steps for a personal financial plan in the proper order: 1. Review and revise the financial plan 2. Identify
    10·1 answer
  • Consider the following account balances of Smiths Corp. at the end of the year:
    6·1 answer
  • The competitive strategy of a firm pursuing a "think global, act local" approach to strategy making: Select one: a. Entails litt
    5·1 answer
  • A nurse manager is preparing to talk to her staff about quality improvement at a staff meeting. Which statement below is a corre
    5·2 answers
  • The Department may choose to grant an exception to the examination requirement under certain circumstances. Which of the followi
    8·1 answer
  • What most likely resulted after the U.S. Poured resources into stopping the spread of communism after World War II? * 1 point U.
    14·1 answer
  • Suv-cnbi-nkd<br>eve.ryo.ne jo.in<br>g.oo.gle.mee.t​​
    13·1 answer
  • What is a determinant of demand that would cause demand to increase?
    14·1 answer
  • What is meant by 'Price elastic demand?​
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!