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Daniel [21]
3 years ago
12

Tar Heel Corporation had current and accumulated E&P of $500,000 at December 31 20X3. On December 31, the company made a dis

tribution of land to its sole shareholder, William Roy. The land's fair market value was $100,000 and its tax and E&P basis to Tar Heel was $25,000. William assumed a mortgage attached to the land of $10,000. The tax consequences of the distribution to William in 20X3 would be:
Business
1 answer:
NNADVOKAT [17]3 years ago
6 0

Answer:

Dividend of $90,000 and a tax basis in the land of $100,000

Explanation:

The computation of the tax consequences of the distribution of tax is shown below:

As per the data given in the question,

Particulars Amount

E&P $500,000

Fair market value of land $100,000   (A)

Mortgage attached $10,000  (B)

Dividend $90,000  (A - B)

Tax basis in land $100,000

This derives that the dividend amount is of $90,000 and the tax basis for the land is $100,000

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alukav5142 [94]

Answer: a. $39,304

Explanation:

Let us begin by calculating the yearly phone bill.

$63 per month so that is

= 63*12

= $756

A total of $756 per year is spent on the company phone.

Kailynn buys 4 sample kits at $235 per kit.

= 235*4

= $940 in total for the kits last year.

Add the two figures to get her total expenditure from the company.

=940+756

= $1696

Subtract this from her total job benefits,

=$41,000 - $1696

= $39,304

$39,304 was her total employment compensation.

7 0
3 years ago
Which of the following will usually be found on an income statement prepared using absorption costing? Contribution Margin/ Gros
chubhunter [2.5K]

Answer:

C) No/Yes

Explanation:

An income statement (profit and loss account) is one of the financial statements of a company and shows the company’s revenues and expenses during a particular period. It indicates how the revenues are transformed into the net income or net profit

Absorption cost is a method of calculating the cost of a product or enterprise by taking into account indirect expenses (overheads) as well as direct costs.

How do you calculate total period cost under absorption costing?

Income statement shows Sales – Cost of Goods sold = Gross Margin (or Gross Profit) – Operating Expenses = Net Income and is based on the number of units SOLD.

3 0
3 years ago
According to Larry Marder, the president of the McFarlane Companies, the company has changed and morphed and grown over the year
cricket20 [7]

Answer:

Unrelated Diversification

Explanation:

The reason is that the company has entered in a number of product offering that are unrelated to each other. This means the company has subtantially reduced its industry risk by managing a portfolio of products that are different from each other from industry perspective. This is an example of unrelated diversification because comics are unrelated to sports figures, music videos and motion pictures.

8 0
3 years ago
Laura has one risk-free asset and one risky stock in her portfolio. The risk-free asset has an expected return of 3.2 percent. T
Rudiy27
The answer is D) 11.98 percent
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3 years ago
During 2018, the cash flows related to Global Data, Inc.'s lending and borrowing activities are summarized as follows:
const2013 [10]

Answer:

-$144,000

Explanation:

Cash flow from financing activities

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Proceeds from borrowing at bank (note payable) $217,500

Net cash used by financing activities -$144,000

The payment made to retired bond payable reflects the outflow of cash so we deducted it and the borrowing at bank is a cash inflow so we added it

And, the rest items are not relevant. Hence, ignored it

7 0
3 years ago
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