Answer:
A. Increase cash by $120,000 and increase contributed capital by $120,000
Explanation:
when a company issues common stock then the company's cash balance and shareholders fund increases.
in this case, the company issued 2,500 shares of common stock at price $48;
The effect increase cash = 2,500*48
= $120,000
The effect increase contributed capital = 2,500*48
= $120,000
Therefore, The the correct balance sheet effect is, increase cash by $120,000 and increase contributed capital by $120,000.
the earliest is the year the year 2018 and the first time one was invented was 1804! crazy huh it is really funny tho... hope this helps!
Answer:
B) Only statement II is correct.
- II. Has $20,000 of taxable income from Corporation Z.
Explanation:
One of the disadvantages of a C Corporation is that their owners (stockholders) are double taxed. That means that the corporation is taxed and then the stockholders are taxed depending on the dividends that they receive. In this case, Walter has $10,000 of taxable income from Corporation X (= $50,000 x 20%).
On the other hand, sole proprietorships, partnerships, limited liability companies and S Corporations are not taxed, they are pass through entities whose owners are taxed directly. In this case, Walter owns 20% of Corporation Z, therefore he must pay taxes on 20% of taxable income = $100,000 x 20% = $20,000.
Restarted a computer that's on a called a warm boot
