All categories

3 years ago

How many times is income from a c corporation taxed if a retirement fund is the owner of the corporation's' stock?

1 answer:

3 0

<span>The income from a C corporation owned by a retirement fund is taxed twice: once at the corporate level and another time at the retirees' level. The retirement fund isn't taxed on the earnings received, but those earnings are taxed to the retirees when they receive the benefits.</span>

You might be interested in

Kyle, a single taxpayer, worked as a free-lance software engineer for the first three months of 2017. During that time, he earne

mr Goodwill [35]

Answer:

The Amount of FICA Taxes (Self-Employment and Employment Related) does Kyle Owe for the Year 201 is $11,915.

Explanation:

Calculation of the Amount of FICA Taxes (Self-Employment and Employment Related) does Kyle Owe for the Year 2017 are displayed in the document attached.

Download xlsx

7 0

3 years ago

McCoy’s Fish House purchases a tract of land and an existing building for $910,000. The company plans to remove the old building

Nina [5.8K]

Answer: $972,900

Explanation:

The cost of land consists of the actual purchase price, and all other expenses that are necessary to make the asset ready for its intended use. In terms of land, all these expenditures can include title fees, unpaid taxes from previous years only (i.e. not current taxes), and other expenses need to physically prepare the land for use. The current taxes figure of $4,600 is not included here, as it is only owed during the current year, therefore normal accounting rules for taxes will apply. This figure will thus be treated as a liability until it is paid. The back taxes were aqcuired when the asset was aqcuired, and thus form part of the cost.

Old buildings that were on the land, may need to be teared down so that land can be utilised. The costs used to demolish the building also forms part of the purchase price. On top of that, to fully prepare the land for use the land may need to be landscaped and leveled. All these costs contribute towards getting the land ready for use, and are thus included in the cost. Sales made on any item related to the land, during the process when the land was still being processed for its intended use, will reduce the cost of the asset, and deduct this figure. This figure will fall under sales, which is an income to the business. The full calculation of the cost is as follows:

Purchase price: $910,000

Title insurance: + $2,400

Unpaid property taxes: + $8,300

Cost of removing building: + $45,900

Sale of salvaged materials: - $4,000

Level the land: + $10,300

Cost of land: = $972,900

3 0

3 years ago

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $120,000 or $300,000 with equal

Ivanshal [37]

Answer:

a. If you require a risk premium of 8%, how much will you be willing to pay for the portfolio?

the expected value of our portfolio = ($120,000 x 50%) + ($300,000 x 50%) = $210,000

the current market price of the investment = $210,000 / 1.13 = $185,840.71

discount rate = 5% + 8% = 13%

b. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be?

13%, it should be equal to the discount rate

c. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?

the current market price of the investment = $210,000 / 1.21 = $175,000

discount rate = 5% + 15% = 20%

d. Comparing your answers to (a) and (c), what do you conclude about the relationship between the required risk premium on a portfolio and the price at which the portfolio will sell?

the higher the risk premium, the lower the market price of the portfolio

4 0

3 years ago

16. Which of the following cuts is ideal for smoking?

Ludmilka [50]

[ Answer ]

$\boxed{Brisket}$

[ Explanation ]

Brisket - Cut from breast or lower chest. Brisket comes from a cow or veal

Brisket is ideal for smoking because of its high fat content. When smoking meat, if the meat does not have lots of fat and is thing, the smoking process can dry out the meat. With brisket, the meat is very fat, causing the meat not to dry out and getting a tender juicy flavor.

When lighting a campfire or barbecue, you may notice lots of smoke. The smoke may affect your breathing, make you thirsty, or dry you out. This is the same affect of the meats. The smoke provides lots more flavor for the meat, and dries it out, if there is not enough fat on the meat.

$\boxed{[ \ Eclipsed \ ]}$

7 0

3 years ago

Read 2 more answers

Benjamin Graham, the father of value investing, once said, "In the short run, the market is a voting machine, but in the long ru

Ber [7]

Answer:

1- a. A stock's intrinsic value is based on true investor return.

2- a. Most investors prefer companies that can rise prices beyond reasonable levels.

b. Successful companies can avoid raising external funds in the financial markets.

Explanation:

Intrinsic value of a company's stock is the real value of stock which is based on systematic factors affecting the company. The factors affecting the intrinsic value of company are usually internal factors. The performance of company management, employee satisfaction and its operational efficiencies are the factor which drive intrinsic value of a company.

6 0

2 years ago