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Marrrta [24]
2 years ago
7

Since 2008, Ben has owned all 100 outstanding shares of N and M Corporation’s stock. Ben’s basis for the stock is $50,000. In 20

19, N and M have earnings and profits of $100,000. The corporation redeemed 25 shares of Ben’s stock for $75,000 in 2019. How will Ben report this?
A. $75,000 dividend.B. $75,000 gain.C. $50,000 gain.D. None of the above
Business
1 answer:
FromTheMoon [43]2 years ago
6 0

Answer:

A. $75,000 dividend

Explanation:

This is not  a capital gain as it do not come from the change in the value of the previously owned shares this are new shares.

The shares which N and M provide in favor to Ben are an stock dividend thus, the tax treatment should be of dividends as well.

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Select the correct answer.
Ksenya-84 [330]

Answer: E. she can now work as a trainee with an expert

Explanation:

Since Jessica hopes to get an entry level job in an audit firm, the professional organization will help her in her quest as she can now work as a trainee with an expert.

By joining the professional organization, she'll get the work experience that's needed when she finally get the role on the audit firm. She would have learned from a professional who's experienced and this will be vital in her getting into the workforce.

4 0
2 years ago
Eric is an inventory manager at a garment manufacturing firm. How should he plan the ordering of inventory? A. He should order l
fiasKO [112]

Answer:

B

Explanation:

i just took the test and got it correct

3 0
2 years ago
Suppose you believe that Florio Company's stock price is going to decline from its current level of $82.50 sometime during the n
Lunna [17]

Answer:

$19.9

Explanation:

According to the given situation the computation of pre-tax net profit is shown below:-

Net pre-tax profit = Option exercised per share  + Actual stock price at the end + Profit - Option premium

= $85 + $60 + $25 - $5.10

= $19.9

Therefore for computing the pre-tax net profit we simply applied the above formulas.

4 0
3 years ago
Based on your understanding of the impact of macroeconomic factors, identify which of the following statements are true or false
lawyer [7]

Answer:

  1. True
  2. False
  3. True
  4. True

Explanation:

When an economy has a strong balance sheet and a declining budget deficit, it means that there is less need to borrow from the market which would keep rates lower.

When the economy is weakening, the Fed will try to stimulate it by engaging in actions that weaken short term interest rates so that people and businesses can borrow at lower cost and invest or buy goods and services.

When investors are worried about the riskiness of other financial assets, they usually come to safer assets like U.S. Treasury bonds so that they do not lose money and this is what happened in the credit crisis of 2008. More demand for the bonds led to a rise in their price.

3 0
2 years ago
On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $43,000 and
Marrrta [24]

Answer:

Bad debt expense $5.125

Explanation:

Initial Balance    

Accounts Receivable  $ 43.000  

Allowance for Uncollectible Accounts   $ 1.250

Entry    

Allowance for Uncollectible Accounts  $ 775  

Accounts Receivable   $ 775

New Balance    

Accounts Receivable  $ 42.225  

Allowance for Uncollectible Accounts   $ 475

Entry Adjustment

Bad debt expense  $ 5.125  

Allowance for Uncollectible Accounts   $ 5.125

END Balance    

Accounts Receivable  $ 42.225  

Allowance for Uncollectible Accounts   $ 5.600

7 0
2 years ago
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