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stellarik [79]
3 years ago
14

White Company owns 60% of Cody Company. Separate tax returns are required. For 2017, White's operating income (excluding taxes a

nd any income from Cody) was $300,000 while Cody reported a pretax income of $125,000. During the period, Cody declared total dividends of $25,000; $15,000 (60%) to White and $10,000 to the noncontrolling interest. White declared dividends of $180,000. The income tax rate for both companies is 30%.Compute Cody's undistributed earnings for 2018.A. $62,500.B. $125,000.C. $87,500.D. $100,000.E. $70,000.
Business
1 answer:
Sauron [17]3 years ago
3 0

Answer:

Option (A) is correct.

Explanation:

Cody's undistributed earnings for 2018:

Given that,

Pretax Income = $125,000

Income tax rate for both companies = 30%

Cody declared total dividends = $25,000

Tax = Pretax income × Tax rate

      = $125,000 × 30%

      = $37,500

Undistributed Earnings = Pretax Income - Tax - Dividends distributed

                                        = $125,000 - $37,500 - $25,000

                                        = $62,500

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Answer:

Downward communication

Explanation:

Downward communication in a formal structure is the flow of information in terms of orders, appreciation, encouragement from higher authority to subordinates across the organization.

Upward communication in the form of feedback and problems flow from lower level employees to upper level. Here, the board of directors are top level employees who have passed the message to the employees to raise the level of service. This is a form of downward communication.

4 0
3 years ago
Billy opens a bicycle shop that sells an innovative new kind of bicycle. He decides to call the bicycles Bicycles. Billy extensi
Contact [7]

Answer:

Option B is correct because the first thing is we can not register it as trademark because the requirement to register trademark is:

  • It must be in use And
  • Must be distinctive.

In this case the word bicycle is not distinctive. The word distinctive in law means that the item must be different from something else either in nature or type.

Option A is incorrect as the word bicycle is not distinctive, so it can not be registered. And if it can not be registered then it can not be protected against trademark infringement.

Option C is also incorrect as this word does not meets the requirements of trademark registration.

Option D is also incorrect because certification mark are logos of products to make the quality or nature of product clear.

5 0
3 years ago
You just purchased two coins at a price of $790 each. Because one of the coins is more collectible, you believe that its value w
Novosadov [1.4K]

Answer:

$3,233.12

Explanation:

Data given in the question

Purchase value of two coins = $790

First coin rate = 7.3%

Second coin rate = 6.7%

So, after considering the above information, the amount worth in 20 years

= Purchase value of two coins ×(1 + interest rate)^number of years

= $790 × (1 + 0.073)^20

= $790 × 4.0925541961

= $3,233.12

4 0
3 years ago
A company has a minimum required rate of return of 8% and is considering investing in a project that costs $175,000 and is expec
Daniel [21]

Answer: $5,396.79

Explanation:

The net present value is value of the after tax cash flows from an investment minus the value of the amount invested.

The net present value can be found using a financial calculator.

Cash flow for year zero = $-175,000

Cash flow for each year from year 1 to year 3 = 70,000

I = 8%

NPV =$5,396.79

I hope my answer helps you

5 0
3 years ago
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Mamont248 [21]

Answer:c

Explanation:

I just took the text

5 0
2 years ago
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