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kompoz [17]
3 years ago
15

6. Explain how liabilities of an LLC (taxed as a partnership) or an S corporation affect the amount of tax losses from the entit

y that limited liability company members and S corporation shareholders may deduct. Do the tax rules favor LLCs or S corporations?
Business
1 answer:
Natasha_Volkova [10]3 years ago
7 0

Answer:

LLC liabilities are included as part of member's tax basis while S corporation liabilities are not.

Tax rules favors LLCs.

Explanation:

LLC liabilities are included as part of a member's tax basis while S corporation liabilities are not included in an S corporation shareholder's tax basis other than loans from the shareholders.

This distinction is important because the amount of loss a member or shareholder may deduct is limited to his or her tax basis in either his or her LLC interest or shares. Thus in this particular regard Tax rules favors LLCs.

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Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,053,000 shares of $10 par common
DedPeter [7]

Answer:

1.  The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 2,654,300 shares.

2. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2014 is 4,256,300 shares

3. The weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 8,512,600 shares

4. The weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 is 9,580,600 shares.

Explanation:

1. To calculate the weighted-average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement we would have to ake the following calculation:

Jan1.2013-Sep30.2013(2,413,000*9/12)=1,809,750

retroactive adjustment for stock dividend ×1.10

Jan1.2013-Sep30.2013 adjusted= 1,990,725

Oct.2013-Dec31.2013(2,654,300*3/12)= 663,575

Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 2,654,300 shares.

2. To calculate the weighted-average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement we would have to make the following calculation:

Jan1.2014 -Mar31.2014(2654300*3/12) 663575

April1.2014 -Dec31.2014 (4790300*9/12) 3592725

Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2014 is 4,256,300 shares

3. To calculate the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement we would have to make the following calculation:

2014 weighted average no of shares 4256300

Retroactive adjustment for stock split ×2 =8512600

Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 is 8,512,600 shares

4.  To calculate the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement we would have to make the following calculation:

Jan1.2015-Mar31.2015 (4790300*3/12)=1197575

Retroactive adjustment for stock split ×2

Jan1-Mar31.2015 adjusted. 2395150

Mar1.-Dec31.2015 (9580600*9/12)= 7185450

Therefore, the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 is 9,580,600 shares.

8 0
3 years ago
A portfolio is invested 16 percent in Stock G, 56 percent in Stock J, and 28 percent in Stock K. The expected returns on these s
3241004551 [841]

Answer:

16.16%

Explanation:

The formula to compute the expected rate of return is shown below: -

Expected rate of return = (Weightage of Stock G × Expected Returns G) + (Weightage of Stock J × Expected Returns J) + (Weightage of Stock K × Expected Returns K)

= (16% × 10%) + (56% × 16%) + (28% × 20%)

= (0.16 × 0.1) + (0.56 × 0.16) + (0.28 × 0.20)

= 0.016 + 0.0896 + 0.056

= 0.1616

= 16.16%

4 0
3 years ago
According to the literature on organizational conflict, constructive conflict Question 1 options: tends to produce beneficial ou
Tom [10]

Answer:

tends to produce beneficial outcomes, particularly better decision making.

Explanation:

Constructive conflict occurs when there are problems that need to be solved by a team in the organization, and thus influence people to cooperate with creative and innovative ideas for solving the problem that can help to produce beneficial results, especially better decisions.

Constructive conflict helps the organization to be more productive by aggregating different ideas about the same problem and focusing on the solution to the resolution, which increases the sense of team integration, participation and understanding of different alternatives that will be improved so that the organization has the best decision making for such a problem.

8 0
3 years ago
Eliminating waste, selling products that are produced with sustainable methods, and installing natural power generation illustra
Aleksandr-060686 [28]

Answer:

option "C" is the correct answer for the following statement.

A knowledge-based approach.

Explanation:

The Knowledge-Based Approach. Information-Based Training is a method that includes trying to adapt hypotheses, knowledge, and customs from a wide range of scientific fields and implementing them whenever suitable for the training engagement.

There were several benefits to portraying information directly through rules: Development and preservation.  

  • Explaining.  
  • Purpose.

6 0
3 years ago
The gross profit method of inventory valuation is not valid when a. there is substantial increase in the quantity of inventory d
lukranit [14]

Answer:

The gross profit method of inventory valuation is not valid when

c. the gross margin percentage changes significantly during the year.

Explanation:

Gross Profit Method:

It is such method that is used to determine the value of ending inventory in a specific period.

  • The option a, b and d are valid as this method is used when there is substantial increase in the quantity of inventory or in the cost of the inventory during the year. Moreover, it is also used to calculate the amount of ending inventory that is effected by a disaster such as fire, theft etc.
  • The option c is not valid because it is not used when the gross margin percentage changes significantly during the year as gross profit method is only used to determine the amount of an ending inventory.

6 0
3 years ago
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