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ycow [4]
3 years ago
7

Kee Holding Corp. has eighty unrelated equal stock-holders. For the year ended December 31, 2019, Kee's income comprised the fol

lowing: Net rental income $ 1,000 Commissions earned on sales of franchises 3,000 Dividends from taxable domestic corporations 90,000 Deductible expenses for 2019 totaled $10,000. Kee paid no dividends for the past three years. Kee's liability for personal holding company tax for 2019 will be based on undistributed personal holding company income of___________.
Business
1 answer:
Andre45 [30]3 years ago
7 0

Answer:

$84,000

Explanation:

Based on the Data provided, the Total Income for Kee Holding Corporation is $94,000 whereas the Total Expenses are $10,000. This expense for $10,000 will be deducted for calculating tax on undistributed personal holding company income because it is a Deductible Expense and Deductible Expenses are allowed to be deducted when calculating Tax liability.  

Rental Income $ 1,000.00  

Commissions  $ 3,000.00  

Dividends  $ 90,000.00  

Total Income  $ 94,000.00  

Deductible Expenses $ 10,000.00  

   

Net Income  $ 84,000.00

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A company has a unit contribution margin of $80 and a contribution margin ratio of 50%. what is the unit selling price?
lora16 [44]

If a company has a unit contribution margin of $80 and a contribution margin ratio of 50%. Then its unit selling price is $160 therefore option (d) is the correct answer.

Contribution margin, or dollar contribution in keeping with the unit, is the selling fee in step with the unit minus the variable price in line with the unit. "Contribution" represents the portion of sales that isn't eaten up by variable prices and so contributes to the coverage of fixed fees. The contribution margin is computed because of the promoting charge per unit, minus the variable value according to the unit. Additionally known as greenback contribution per unit, the measure indicates how a specific product contributes to the general income of the business enterprise.

To calculate the unit selling price use the formula

Unit selling price = contribution margin / contribution margin ratio

Unit selling price = $80 / 50%

Unit selling price = $160

Therefore option d) $160 is the correct answer

The contribution margin ratio of a business is the same as its revenue much less all variable fees, divided by means of its sales. It represents the marginal gain of producing one more unit.

Learn more about the Contribution margin here brainly.com/question/24881206

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3 0
1 year ago
Wilson’s is reviewing a project with an internal rate of return of 13.09 percent and a beta of 1.42. The market risk premium is
maria [59]

Answer:

Accepted and rejected

Explanation:

Since the internal rate of return is 13.09% and the WACC is 12.68%

As we can see that the internal rate of return is higher than the WACC as WACC is considered as the discount rate

So the project should be accepted

And, if CAPM is used

So, the expected rate of return is

If CAPM is used

Risk-free rate of return + Beta × market risk premium

= 2.9% + 1.42 × 8.1%

= 2.9% + 11.502%

= 14.40%

And, The Internal rate of return  = 13.09%

Since the internal rate of return is less than the expected rate of return therefore the project should be rejected

5 0
3 years ago
During the month of May, a company performed $2,400 of cash services and $3,300 of services on account. The journal entry at the
Tanya [424]

Answer:

Debit : Cash  $2,400

Debit : Account Receivables $3,300

Credit : Revenue $5,700

Explanation:

Revenue is recognized when a firm transfers the control of goods or services not when paid.

So this journal must both recognize the Assets in Cash and Assets in Trade Receivables since control for the services has already been transferred.

The journal entry at the end of the month to record this transaction would be :

Debit : Cash  $2,400

Debit : Account Receivables $3,300

Credit : Revenue $5,700

3 0
2 years ago
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.9 pound
Stella [2.4K]

Answer:

Childress Company

Orders for K1 should be filled first.

Orders for G9 should be filled second.

Orders for S5 should be filled third.

Explanation:

a) Data and Calculations:

                                                               K1            S5           G9

Direct materials per unit (pounds)       4.9           2.4           5.4

Materials available for production = 58,400

Selling price                                      $ 167.40  $ 99.28  $ 210.02

Variable costs                                       89.00     76.00      149.00

Contribution margin per unit           $  78.40  $ 23.28   $   61.02

Contribution margin per pound         $16          $9.70       $11.30

Orders for K1 should be filled first

Orders for G9 should be filled second

Orders for S5 should be filled third.

b) This order filling sequence will maximize the contribution margin per pound, ensuring the highest efficient use of the limited materials available for production.

3 0
2 years ago
You work for an auto manufacturer and distributor. How could you use information systems to
lawyer [7]
  • We can create a website wherein customers may adapt autos or talk using support personnel as well as other car owners.
  • Users may establish an automated e-mail service to remind automobile owners to check their cars often.
  • It could include a system of information that monitors local client preferences so that vehicles that represent the requirements and wishes of local customers are provided.
  • It can be a company that invests in data techniques that allow it to manufacture new products or effectiveness inside its distribution network, thereby making it a low-cost producer.
  • Data system to improve communication with suppliers and optimize the supply chain for operational excellence.
  • It could assist managers in communicating more effectively with workers, enable item technical development, eliminate cost warehousing or simplify delivery.

Learn more:

brainly.com/question/7283854

4 0
3 years ago
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