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Serggg [28]
4 years ago
7

Boomerang Corporation, a New Zealand corporation, is owned by the following unrelated persons: 40 percent by a U.S. corporation,

15 percent by a U.S. individual, and 45 percent by an Australian corporation. During the year, Boomerang earned $6,400,000 of subpart F income. Which of the following statements is true about the application of subpart F to the income earned by Boomerang?
O Boomerang is a CFC and the U.S. corporation and U.S. individual will have a deemed dividend of $2,560,000 and $960,000, respectively.

O Boomerang is a CFC and only the U.S. corporation will have a deemed dividend of $2,560,000.

O Boomerang is a CFC and the U.S. corporation, U.S. individual, and Australian corporation will have a deemed Odividend of $2,560,000, $960,000, and $2,880,000, respectively.

Boomerang is not a CFC and none of the shareholders will have a deemed dividend under subpart F.
Business
1 answer:
vovangra [49]4 years ago
4 0

Answer:

Statement 1 is the correct answer.

Explanation:

A corporate entity that is registered and conducts business in a different province or country than the residency of the controlling owners is known as a controlled foreign corporation (CFC).

In the U.S., the control of a foreign company is defined according to the percentage of shares owned by U.S. citizens.

Since the U.S. shareholders (the U.S. corporation and U.S. individual in this scenario) own more than 50 percent of the corporation's stock, then Boomerang is a CFC. The U.S. corporation and U.S. individual will have a deemed dividend equal to their pro-rata share of the corporation's subpart F income.

Therefore, statement 1 is the correct answer.

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Which of the following is not a good example of a marketing-related key success factor?
igomit [66]

Answer: A. a well-known and well-respected brand name

Explanation:

Good examples of a marketing-related key success factor include breadth of product line and product selection, proven ability to improve production processes, clever advertising and courteous, personalized customer service.

Therefore, a well-known and well-respected brand name is not among the options for Marketing related success factors.

4 0
3 years ago
Leone thinks that because her employee Josef went to an Ivy League college he is very knowledgeable, and she always asks his opi
lina2011 [118]

Answer:

self-fulfilling prophecy

Explanation:

Based on the information provided within the question it can be said that in this scenario a self-fulfilling prophecy has occurred. This term refers to when an individual causes a prediction to come true by unintentionally adjusting their behavior and action in such a way that makes that prediction come true. Which is what is happening in this scenario since Leone thinks that Josef is good at investing, it makes Joesef read up and become good at investing.

3 0
4 years ago
A restaurant sells pizza at a rate of $14.57/slice. Expenses for the restaurant include raw material for pizza at $9.57 per slic
natka813 [3]

Answer:

they should sell 16 pizzas

Explanation:

Total expense money :  9.57+168+62 =239.57

239.57 / 14.57 = 16.44 ≈ 16.4 and if we round up the decimal side the answer will be 16. Therefore the restaurant has to sell 16 pizzas

Hope i helped in some way!

3 0
3 years ago
Miltmar Corporation will pay a year-end dividend of $5, and dividends thereafter are expected to grow at the constant rate of 4%
morpeh [17]

Answer:

a. 10.04%

b. $82.78

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

a. Expected rate of return or market capitalization = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 5% + 0.72 × (12% - 5%)

= 5% + 0.72 × 7%

= 5% + 5.04%

= 10.04%

The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.

b. Now the intrinsic value would be

= Expected dividend ÷ (Required rate of return - growth rate)  

= $5 ÷ (10.04% - 4%)

= $5 ÷ 6.04%

= $82.78

7 0
4 years ago
Sharon is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: I
Maurinko [17]

Answer:

The basic principle is known as the opportunity cost

Explanation:

The opportunity cost is defined as something that you are not earning because you don't do a revenue activity.

In this case, Sharon doesn't receive $9 per each hour that she prefers to go to the swimming pool. Also, she is expending $4 additional to the opportunity cost each time that she goes to swim.

<em>For example, if she goes to swim 2 hours a day instead of work them, we can conclude that she isn't earning $18 and lossing $4 additional for the fee entrance to the swimming pool.     </em>

<em />

Please, note that, are different the concepts of "let of earning" and "lossing". First one talks about money that you never have had and the second is about money that you had but now you don't.

6 0
3 years ago
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