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Ksenya-84 [330]
3 years ago
13

Jazz Corporation owns 10 percent of the Williams Corp. stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz

Corp.'s taxable income (loss) before the dividend was ($2,000). What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.
Business
1 answer:
weeeeeb [17]3 years ago
3 0

Answer:

$5,600

Explanation:

Jazz Corporation

Dividend $10,000

Less taxable income loss $2,000

Taxable income before the DRD$8,000

Thus:

70%×8,000

=$5,600

Therefore the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp is $5,600 reason been that Jazz owns less than 20% of the Williams stock, the DRD percentage is 70%and $5,600 (70% × 8,000 taxable income before the DRD) is less than the full DRD of $7,000 and the full DRD due to the fact that it does not create a net operating loss ($8,000 - $7,000 = $1,000), so the DRD is limited to $5,600.

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This year Nathan transferred $1 million to an irrevocable trust established for the benefit of his nephew. The trustee is direct
iren [92.7K]

Answer:

Zero- there is a $10 Million exemption equivalent ( d )

Explanation:

Annual exemption to be ignored = $15000

$1 million  to an irrevocable trust

taxable gifts = $6 million

A) The amount of gift tax Nathan must remit in 2017 ignoring annual exemption

The gift tax must remit in 2017 is zero because there is a $10 million exemption because of the annual exception ( even if the annual exception is ignored ) and  the lifetime benefits on taxable gifts that Nathan has is approximately $11.4 million, hence he wont be remitting any amount on gift tax in 2017

7 0
3 years ago
Tommy bought 35 shares of stock at $45.75 per share. He received dividends of $82.45 during the year. At the end of the year, hi
gogolik [260]

Answer:

10.57%

Explanation:

Return on investment is a profitability measure of gains realized from an investment. It is a ratio that shows how a business uses its resources to generate profits. Return on investment compares the net income against the initial investment.

ROI = Net Income / Cost of Investment

For Tommy,

The initial investment is 35 x $45.75 =$1,601.25

The gains from the investments

Dividends of $82.45

Gains in share value = 35 x ($48. 75 -$45.43)

35 x 2.48 =$86.8

Net gains will be $82.45 + $86.8= $169.25

ROI = $169.25/$1601.25

ROI =0.10569  X 100

=10.57%

5 0
3 years ago
Michael Company reports the following account balances at the end of the first year of​ operations: Revenues $ 160 comma 000 Cos
professor190 [17]

Answer:

$46,000

Explanation:

The computation of the total liabilities at the end of the first​ year is shown below:

We know that

Total assets = Total liabilities + stockholder equity

where,

Total assets = Cash + land + short term investment

                    = $102,000 + $40,000 + $14,000

                    = $156,000

Stockholder equity = Common stock + net income - dividend paid

                                = $50,000 + 72,000 - $12,000

                                = $110,000

So, the total liabilities would be

= $156,000 - $110,000

= $46,000

Working Note:

The net income is

= Revenue - cost of goods sold - Salaries Expense -  Utilities Expense - Advertising Expense ​

= $160,000 - $46,000 - $21,000 - $11,000 - $10,000

= $72,000

3 0
3 years ago
If a profit-maximizing, competitive firm is producing a quantity at which marginal cost is between average variable cost and ave
Murljashka [212]

Answer:

a. keep producing in the short run but exit the market in the long run.

Explanation:

To answer the question, there is a need to look at the effect of the situation on the firm both in the short- run and the long-run

Short Run Effect

The Marginal cost is between average variable cost and average total cost. The business can still continue producing goods because the quantity being produced is still able to cover the average variable cost. This means that the firm is still able meet its variable costs by setting the price of its goods to its marginal cost which is an amount greater than its average variable cost.  

Long Run Effect

However, in the long-run the company will begin to have issues even meeting other important costs such as the fixed costs associated with production and as such, the firm will need to exit the market in the long run. For instance the cost of long term loans (principal and interest) may not be covered by the net income of the firm.  

5 0
3 years ago
Should an hco focus clinical measurement in an office of quality management?
Hunter-Best [27]
<span>I believe it would be beneficial for an hco to examine an office of quality management. The reason being is that to have effective quality management you need competent workers in optimal mental and physical health. If quality management fails the health standards, then they will not be able to effectively lead a team.</span>
6 0
3 years ago
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