Answer:
They are a more reliable means of help in anything.
Answer:
E&P $1,200,000 × 25%= $300,000 reduction
Crane Corporation would reduce its E & P in the amount of $300,000 as a result of the redemption.
This represents a 25% decrease in the amount of the E & P corresponding to the 25% stock redemption.
When a stock redemption results in sale or exchange treatment for the shareholder, the E & P account of a corporation is reduced in an amount not in excess of the ratable share of the E & P of the distributing corporation attributable to the stock redeemed.
As such, none of the expense of $13,000 of accounting and legal fees or other is deductible.
Answer:
The lump sum be of $237,228.84
Explanation:
In order to calculate how large must the lump sum be we would have to use and calculate the formula of Present value of annuity due as follows:
Present value of annuity due=(1+interest rate)*Annuity[1-(1+interest rate)^-time period]/rate
Present value of annuity due=(1+0.075)*$25,000[1-(1.075)^-15]/0.075
Present value of annuity due=$25,000*9.489153726
Present value of annuity due=$237,228.84(Approx)
The lump sum be of $237,228.84
Answer:
c. 6%.
Explanation:
Nominal interest rate = Real interest rate + Expected rate of inflation
Real interest rate = Nominal interest rate - Expected rate of inflation
United Kingdom
Real interest rate = 8% - 6% = 2%
Use Real Interest rate globally
Nominal interest rate = Real interest rate + Expected rate of inflation
Nominal interest rate = 2% + 4% = 6%
Answer:
Dental Drilling Company's Income Statement for the year shows Net Income of $56,000.
Please note that:
- figures in bracket represent negative values
- solution in excel format is attached for your reference
Explanation:
Dental Drilling Company
Income Statement
Sales $489,000
Less: Cost of Goods Sold $(156,000)
Gross Profit $333,000
Less: Expenses
Selling and Administrative Expenses $(112,000)
Depreciation Expenses $(73,000)
Earnings before Interest and Tax $148,000
Less: Interest Expense $(45,000)
Earnings Before Tax $103,000
Taxes $(47,000)
Net Income $56,000
