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Natasha_Volkova [10]
3 years ago
14

In the current year, Azul Corporation, a calendar year C corporation, received a dividend of $30,000 from Naranja Corporation. A

zul owns 25% of the Naranja Corporation stock. Assuming it is not subject to the taxable income limitation, Azul's dividends received deduction is $19,500. True
Business
1 answer:
netineya [11]3 years ago
7 0

Answer:

FALSE

Explanation:

In the current year, Azul Corporation, a calendar year C corporation, received a dividend of $30,000 from Naranja Corporation. Azul owns 25% of the Naranja Corporation stock.

Assuming it is not subject to the taxable income limitation, Azul's dividends received deduction is $24,000.

<u>According to the tax law, Dividend received deductions for C corporations can be deducted up to 70% but when the receiving company owns more than 20% but less than 80% of the paying company, the deduction amounts to 80% of the dividend received.</u>

Deduction = 0.8 x 30,000 = $24,000

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A company wants to determine its reorder point (R). Demand is variable and they want to build a safety stock into R. The company
victus00 [196]

Answer: 27.28 units

Explanation:

From the question, we are told that a company wants to determine its reorder point (R) and that demand is variable and they want to build a safety stock into R. We have also been given the information that the company wants to have a service level of 95 percent and that average daily demand is 8, lead time is 3 days and the standard deviation of demand during lead time is 2.

It should be noted that a service level of 95% will have a desired z score of 1.64. To get the desired value of R, we multiply the average daily demand by the number of the days in lead time and then add to the multiplication between the standard deviation during the lead time and the desired z score. Mathematically, this will be expressed as:

= (8 × 3) + (2 × 1.64)

= 24 + 3.28

= 27.28

Therefore, the desired value of R = 27.28 units

8 0
3 years ago
Contribution Margin Molly Company sells 37,000 units at $19 per unit. Variable costs are $11.59 per unit, and fixed costs are $1
yarga [219]

Answer:

(a) Contribution margin ratio = 0.39, or 39%

(b) the unit contribution margin = $7.4 per unit

(c) income from operations = $164,470

Explanation:

Total revenue = 37,000 × $19 = $703,000

Total variable cost = 37,000 × $11.59 = $428,830

Margin = $703,000 - $428,830 = $274,170

(a) the contribution margin ratio

Contribution margin ratio = $274,170/$703,000 = 0.39, or 39%

(b) the unit contribution margin

Unit contribution margin =  $19 - $11.59 = $7.4 per unit

(c) income from operations

Income from operations = $274,170 - $109,700 = $164,470

5 0
3 years ago
Tom Noel holds the following portfolio: Stock Investment Beta A $150,000 1.40 B 50,000 0.80 C 100,000 1.00 D 75,000 1.20 Total $
exis [7]

Answer: -0.24

Explanation:

The portfolio beta is a weighted average of the betas of the individual stocks in it.

The portfolio beta before the replacement is;

= (1.4 * 150,000/375,000) + (0.8 * 50,000/375,000) + ( 1 * 100,000/375,000) + (75,000 * 75,000/375,000)

= 0.56 + 0.11 + 0.27 + 0.24

= 1.17

After the replacement, portfolio beta will be;

=  (0.75 * 150,000/375,000) + (0.8 * 50,000/375,000) + ( 1 * 100,000/375,000) + (75,000 * 75,000/375,000)

= 0.32 + 0.11 + 0.27 + 0.24

= 0.93

The change is therefore;

= 0.93 - 1.17

= -0.24

6 0
2 years ago
On December 31, Slugger Batting Cages Company decides to trade in one of its batting cages for another one that has a cost of $5
torisob [31]

Answer:

There is a loss of 18,000

Explanation:

In this question, we are asked to calculate the amount of boot in this transaction.

We proceed as follows;

We must identify that to buy one asset, we exchanged one asset with another

Mathematically;

loss or gain = asset given up - Discount received in exchange

From the question we identify the following;

value of asset given up = 225,000 - 195,000 = 30,000

Discount received in exchange = 12,000

Thus, loss or gain is

= 30,000 - 12,000

So, there's a loss of 18,000

4 0
2 years ago
When assuming nonconstant growth in dividends, to avoid the problem of having to forecast and discount an infinite number of div
Sergio039 [100]

To avoid the problem of having to forecast and discount an infinite number of dividends, we must require that the dividends start to grow at a fixed rate in the future.

<h3>What are dividends?</h3>

Dividends are payments made by a company to its shareholders. This money is taken from the total profits made by the company. The remaining money after the payment of dividends goes to re-investment in order to grow the company.

Therefore, we can confirm that in order to avoid the problems presented in the question regarding dividends, we must require that they grow at a fixed rate in the future.

To learn more about profit visit:

brainly.com/question/1494270?referrer=searchResults

4 0
2 years ago
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