Answer:
12
Explanation:
At the price of $24, the demand is 36
At the price of $30, the demand is 24
change in quantity demanded
= 36-24
= 12
Answer:
$400,000
Explanation:
Since at December 31, Year 5, Tedd's tax advisor believed that an unfavorable outcome was <u>probable</u>. And a <u>reasonable estimate </u>of additional taxes was $400,000 but could be as much as $600,000.
Although after the Year 5 financial statements were issued, Tedd received and accepted an IRS settlement offer of $450,000.
Tedd should have included an amount of $400,000 as accrued liability in its December 31, Year 5 balance sheet
The reason is that according to the International Financial Reporting Standards, a PROVISION must be made as long as the conditions below were obtainable at year end.
- Existing Condition (which in this case is the tax dispute with the IRS)
- Probable Cash Outflow (which Tedd's Tax adviser confirmed)
- Reliable Estimate of Outflow ( which the scenario stated ''A reasonable estimate of additional taxes was $400,000'')
Hence, such 'reasonable estimate is the appropriate amount for inclusion in the financial statements.
Trade credit
Small firms may be able to get finance in the form of trade credit from their suppliers. Suppliers enable the company to obtain the products and services it requires and pay for them later or in installments.
<h3>What is the meaning of trade credit?</h3>
A business-to-business (B2B) agreement known as trade credit allows customers to make purchases of goods without paying in cash upfront and to make payments to suppliers at a later date. Businesses that use trade credits typically give customers 30, 60, or 90 days to make payment, with the transaction being documented by an invoice.
Trade credit can be compared to a form of 0% financing because it increases an organization's assets while deferring payment for a certain amount of products or services to the future and requires no interest payments throughout the repayment period.
Learn more about trade credit here:
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$396,200 + 61,250 + 27,600+ 9,000+ = 479,000 dollars
Answer:
<em>Sam's dividend income is $225,000 and has a reduction of stock basis of $27,500</em>
<em>Explanation:</em>
<em>From the example ,</em>
<em>Given that,</em>
<em>Sam stock is =$52.500</em>
<em>Blue corporation has deficit in accumulated E and P which is =$300,000</em>
<em>Blue corporation has current E and P of = $225,000</em>
<em>Blue distributes $250,000 to its shareholder on July 1st</em>
<em>Therefore,</em>
<em>Blue corporation has a current E & P of $225,000, to an extent, Sam has a taxable dividend. The remaining $25,000 reduces his basis stock.</em>
<em>Sam has an income dividend of $225,000 and reduces his stock basis to $27,500.</em>
