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seraphim [82]
3 years ago
15

Bow, Inc., an S corp, has three equal shareholders. For the year ended Dec 31 2009, Bow had taxable income and current earnings

and profits of 300K. Bow made distributions totaling 120K during 2009. For 2009, what amount from Bow should be included in each S/H's gross income?a. 140Kb. 100Kc. 60Kd. 40K
Business
1 answer:
Andreyy893 years ago
7 0

Answer:

option (b) 100K

Explanation:

Data provided in the question:

Total number of share holders = 3

Taxable income and current earnings and profits = 300K

Distributions made during 2009 = 120K

Now,

Since the  shareholders are equal shareholders in Bow Inc,

Therefore,

The amount from Bow that should be included in each S/H's gross income will be

= ( Taxable income and current earnings and profits ) ÷ (Number of share holders)

= 300K ÷ 3

= 100K

Hence,

the answer is option (b) 100K

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Magic Realm, Inc., has developed a new fantasy board game. The company sold 24,900 games last year at a selling price of $66 per
pickupchik [31]

Answer:

Part a

contribution format income statement

Sales                                                      $1,643,400

Less Variable Costs                             ($1,145,400)

Contribution                                            $498,000

Less Fixed Costs                                    ($415,000)

Net Income (Loss)                                    $83,000

Part b

6.00

Part c

See explanation

Part d

See explanation

Explanation:

Contribution Income Statement separates variable costs and fixed costs as shown above.

Degree of operating leverage =  Contribution ÷ Earnings Before Interest and Tax

                                                   = $498,000 ÷ $83,000

                                                   = 6.00

Part c and Part d

Since there is missing information related to these parts here are the explanations.

<u>The expected percentage increase in net operating income for next year.</u>

Calculated by multiplying the percentage change in sales by the degree of operating leverage.

<u>The expected total dollar net operating income for next year.</u>

Simply apply the expected percentage increase calculated in part c to the existing Net Profit

4 0
4 years ago
Which of the following statements about advertising is most accurate? Advertising is the least costly form of promotion because
jek_recluse [69]

Answer:

The correct answer is letter "E": Through advertising, a company can control, to some extent, to whom the message is sent.

Explanation:

Advertising is the main key to Marketing by which companies promote their goods or services in an attempt to attract a target population. However, the process of determining what advertising technique a firm will use is not that simple. A series of psychological approaches are used to reach consumers strategically.

<em>Companies at a certain level, manage their marketing audience. Though, different mediums of communication allow people of all kinds, not necessarily the company's target population, to be aware of the promotion somehow.</em>

8 0
3 years ago
In the long run, fiscal policy influences a. saving, investment, and growth; in the short run, fiscal policy primarily influence
Studentka2010 [4]

Answer:

The correct option here is A) .

Explanation:

Fiscal policy is a tool which is used by a government to influence the economy , through the changes in spending and taxation ( of governments ). This policy affects the economy in both short run and long run. Fiscal policy has its effect on aggregate demand for goods and services and is very much capable of influencing savings, investment and growth in the economy through its contractionary and expansionary fiscal policies. So thus from the above information it can be said that the option A is correct.

3 0
3 years ago
Smooth Fusion Inc. is a software company, which has built and acquired numerous assets over the years. According to the resource
ser-zykov [4K]

Answer: Option C

           

Explanation:

The human resource of any company is the most valuable resource as the use of all other resources are dependent on it.

In the given case, the company have acquired a lot of assets over the years, that means the company do not lack in technology and physical resources like machinery etc.

Now the company can gain a competitive advantage by using the expertise of their employees in usage of the assets acquired.

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

8 0
3 years ago
Suppose that because of the popularity of Jack Brown's, Aaron decides to open a third restaurant and issues another round of $10
Anettt [7]

The price of the new bonds given the face value and interest rate is $8,928.57.

<h3>What is the price of the bonds?</h3>

Bonds are debt instruments issued by a firm with the purpose of raising capital to carry out projects. The price of the bonds can be determined by discounting the face value of the bonds by the interest rate.

The price of the bonds = face value of the bonds / ( 1 + interest rate)

$10,000 / (1.12) = $8,928.57

To learn more about bonds, please check; brainly.com/question/8917277

6 0
2 years ago
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