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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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Eddie, a 16 year old minor, buys a car from Ace Auto and then damages the car in an accident. To disaffirm the contract and sati
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3 years ago
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3 0
3 years ago
On january 8th your account was charged $30.00 for an overdraft fee. why did that happen?
Zanzabum

On January 8th the account was charged $30.00 for an overdraft fee because It was time to pay the monthly account maintenance charge.

<h3>Why bank charges an overdraft fee?</h3>

When a bank's customer don't have enough money to cover a purchase made using a debit card or a cheque, then the bank will charge the overdraft fee. Rather of denying a charge, the bank will pay it and charge a fee.

In the given case, because it was time to pay the monthly account maintenance charge, the account was charged $30.00 for an overdraft fee on January 8th.

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2 years ago
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