Answer:
Yes, it will affect it.
Explanation:
The dividends received deduction (DRD) refers to a US federal tax law that allows some corporation that are paid dividend by related entities to deduct certain percentage of the dividend received from their income tax depending on their percentage of ownership of the related entity that paid the dividend.
The three criteria or tiers that determines how much to deduct as DRD are as follows:
1. Generally, the DRD a corporation is qualified for is 70% of the dividend received.
2. A DRD equals to 80% of the dividend received can be deducted if the corporation holds more than 20% but less than 80% shareholding of the company that paid the dividend.
3. If the corporation holds more than 80% shareholding of the company that paid the dividend, a DRD of 100% of the dividend applies.
Therefore, additional stock purchase will affect the amount of dividends received deduction that Mustard can claim.
Answer:
net cash provided by operating activities 60,000
Explanation:
net income 70,000
Change in working Capital
Increase Inventory (40,000)
Increase Account payable 30,000
Net change in working capital (10,000)
net cash provided by operating activities 60,000
The working capital is the current asset and current liabilities.
the dividend, bonds and mortgare are not operating activities.
the securities are considered cash.
Answer:
$12,000
Explanation:
Take 20 pieces $20 average price per piece 30 days
= $12,000 expected sales for the month
Answer:
$81,000
Explanation:
The computation of the incremental profit (loss) from accepting the order is shown below:
Contribution per unit = $165 - $75
= $90
Now
Loss on contribution for giving up regular sales is
= $4,100 × 90
= $369,000
Now Incremental contribution for special order is
= ($135 - $75) × 7,500
= $450,000
So,
Incremental profit is
= $450,000 - $369,000
= $81,000
