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juin [17]
3 years ago
6

Gray Company, a closely held C corporation, incurs a $50,000 loss on a passive activity during the year. The company has active

income of $34,000 and portfolio income of $24,000. If Gray is not a personal service corporation, it may deduct $34,000 of the passive activity loss.
a. true.
b. false.
Business
1 answer:
-Dominant- [34]3 years ago
6 0

Answer:

B) False: since it is still a closely held C corporation, it cannot reduce its ordinary income through passive losses. If it hadn't been a closely held C corporation then it could have made the deductions.

Explanation:

Passive losses are losses resulting from financial activities, i.e. investments in other corporations where the investor doesn't participate in.

Passive losses cannot offset ordinary income, they must be matched against passive gains only. If passive losses exceed passive gains, they can be carried forward without limitation.

The only exception applies to C corporations that are not;

  • closely held corporations or
  • personal service corporations.

Qualifying C corporations can actually deduct passive losses from certain ordinary income.  

Closely held C Corporations are corporations where during the last 6 months, 50% or more of its stock is owned by 5 or fewer investors.

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CL Inc., a new firm, used mass media to gain traction among customers. The company used sales promotions and public relations to
uysha [10]

Answer: Integrated marketing communications

Explanation: It is a system of brand messaging used by several organisations nowadays. In such a system all the branches of marketing such as advertising, promotions, public relations etc are molded together to increase the potential of the business.

In the given case CL inc. used both sales promotion and public relation for making their potential and existing customers more aware.

Hence, from the above we can conclude that Option C is correct.

5 0
3 years ago
What is discretionary spending within a budget?
eduard

Answer:

money invested in high yield financial

5 0
3 years ago
You own $2,000 of city steel stock that has a beta of 2. 5. you also own $8,000 of rent-n-co (beta = 1. 9) and $4,000 of lincoln
Goshia [24]

You own $2,000 of city steel stock that has a beta of 2. 5. you also own $8,000 of rent-n-co (beta = 1. 9) and $4,000 of lincoln corporation (beta = 0. 25). 1.51 is the beta of your portfolio?

Portfolio beta = Weighted Average beta of stocks

Portfolio beta = [2,000(2.5) + 8,000(1.9) + 4,000(0.25)]/14,000

Portfolio beta = 1.51.

Lincoln corporation announced last year that it will cease manufacturing the Continental and MKZ at the end of 2020. The rest of the 2020 models can be purchased new. When those are gone, Lincoln will be left with an all-SUV lineup.

Learn more about the lincoln corporation at

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6 0
1 year ago
Question 7 of 10
MAXImum [283]

Answer:

A

Explanation:

6 0
3 years ago
On november 21, civic company received $550 from customers in payment of their accounts. the journal entry to record this transa
liubo4ka [24]

On November 21, Civic Company received $550 from customers in payment of their accounts. The journal entry to record this transaction will include a credit to accounts receivable.

<h3>What is meant by account receivable?</h3>
  • The money clients owe your business for goods or services for which invoices have been issued is known as accounts receivable. On the balance sheet, current assets are listed as the total amount of all accounts receivable, including bills from clients for goods or services on credit.
  • A person who works in accounts payable must ensure that their company receives payments for the goods and services it provides and record these transactions appropriately.
  • Trade accounts receivable notes receivable and other receivables are the three categories into which receivables are typically broken down.

On November 21, Civic Company received $550 from customers in payment of their accounts. The journal entry to record this transaction will include a credit to accounts receivable.

To learn more about accounts receivable, refer to:

brainly.com/question/24848903

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5 0
1 year ago
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