1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
skelet666 [1.2K]
3 years ago
14

Husker Corporation reports current E&P of negative $200,000 in 20X3 and accumulated E&P at the beginning of the year of

$300,000. Husker distributed $200,000 to its sole shareholder on December 31, 20X3. The shareholder's tax basis in her stock in Husker is $50,000. How is the distribution treated by the shareholder in 20X3?
Business
1 answer:
liubo4ka [24]3 years ago
3 0

Answer:

Given that,

Current E&P = (-$200,000)

Accumulated E&P at the beginning of the year = $300,000

Distributed to his sole shareholders = $200,000

shareholder's tax basis = $50,000

As the ending accumulated E&P = $300,000 - $200,000                

                                                      = $100,000

So, $100,000 would be treated as Dividend.

$50,000 would be treated as Tax free return of basis  and the Balance $50,000 would be the capital gain for shareholder of Husker.

You might be interested in
What is Jared's accounting profit? Suppose Jared could have used his talents to run a similar kind of business instead. If he va
Deffense [45]

Answer:

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one.  

<em>After working as a head chef for years, Jared gave up his $60,000 salary to open his own restaurant last year. He withdrew $50,000 of his own savings that had been earning 4% interest and borrowed another $100,000 from the bank at a rate of 5%. As the restaurant space he was leasing had no separate office, Jared converted his basement apartment into office space. He had previously rented the apartment to a student for $300/month. The following table summarizes his operations for the past year. </em>

<em>Total sales revenue    $590,000       </em>

<em>  Employee wages $120,000   </em>

<em>  Materials                 $350,000   </em>

<em>  Interest on loan $5,000   </em>

<em>  Utilities                 $10,000   </em>

<em>  Rent                 $25,000   </em>

<em>Total explicit costs              $510,000 </em>

<em>a, What is Jared's accounting profit? </em>

<em>b, Suppose Jared could have used his talents to run a similar kind of business instead. If he values his entrepreneurial skill at $10,000 annually, find Jared's total implicit costs. </em>

<em>c, What was Jared's economic profit last year?</em>

My answer:

a. , What is Jared's accounting profit?

As we know that accounting profit is the difference between total sales revenue and Total explicit cost, from the table we can find that:

$590,000  - $510,000  = $80,000 is the accounting profit

b. Jared's total implicit costs.

Implicit costs include his foregone wages ($60,000), the value of his entrepreneurial skill ($10,000), foregone rent on the apartment ($3,600 = 12 x $300) plus the foregone interest on his savings ($2,000 = .04 x $50,000). These total $75,600.

c. What was Jared's economic profit last year?

Explicit plus implicit, was $585,600 = $510,000 + $75,600. His economic profit is the difference between revenue and economic cost, or $4,400 (= $590,000 – $585,600).

8 0
3 years ago
Cost of Merchandise Sold
galben [10]

Answer:

$441,000

Explanation:

The computation of the cost of merchandise sold is shown below:

Cost of merchandise sold = Opening inventory + net purchase - ending inventory

where,

Opening inventory  = $14,500

Net purchase is

= $475,000 - $15,000 - $9,000 + $7,000

= $458,000

And, the ending inventory is $31,500

So, the cost of merchandise sold is

= $14,500 + $458,000 - $31,500

= $441,000

4 0
2 years ago
Monopolistically competitive markets and perfectly competitive markets share some similarities but differ in a number of ways. O
FinnZ [79.3K]

Answer:

feature differentiated products

Explaination:

i just took the quiz

6 0
3 years ago
_____ is collected by outside organizations such as federal and state governments, trade associations, nonprofit organizations,
Zepler [3.9K]

Answer: External secondary data

Explanation:

External secondary data are data gathered and saved by someone or a body that is not part of one's organization. Sources of External secondary data includes published materials, computerised databases and syndicated services.

Note that how difficult or easier it will be getting a secondary data will depend on the methods used in storing and indexing it.

6 0
3 years ago
Graphically, the full-employment, stable-inflation, rapid-growth economy of the last half of the 1990s is depicted by a?
Mamont248 [21]

Graphically, the full-employment, stable-inflation, rapid-growth economy of the last half of the 1990s is depicted by a rightward shift of the aggregate demand curve along a fixed aggregate supply curve.

An economy is a place of manufacturing, distribution, and change, as well as consumption of goods and services. In preferred, it's miles described as a social domain that emphasizes the practices, discourses, and cloth expressions related to the production, use, and management of scarce assets.

An economy is the massive set of inter-associated production and consumption sports that are useful resources in determining how scarce sources are allotted. In a financial system, the manufacturing and intake of products and services are used to fulfill the wishes of these living and working within it.

The economy is defined because of the management of monetary topics for a community, business, or circle of relatives. An instance of an economic system is the stock market device within the US.

Learn more about economy here brainly.com/question/1106682

#SPJ4

7 0
1 year ago
Other questions:
  • Kendra is concerned about the wavy red lines she sees under some words in
    8·2 answers
  • Which of the following statements is FALSE? Global bonds combine the features of domestic, foreign, and Eurobonds, and are offer
    13·1 answer
  • Team _______ occurs when individuals and departments rely on other individuals and departments for information or resources to a
    13·1 answer
  • Your firm needs a computerized line-boring machine that costs $90,000 and requires $16,000 in maintenance costs for each year of
    14·1 answer
  • Raul overheard one of his co-workers in a phone conversation say, Thank you for taking my call so quickly. I'd like to order num
    15·1 answer
  • Marcus is a self-employed marketing consultant. He is good at helping his clients with their marketing challenges; however, he i
    6·1 answer
  • Bonds that may be exchanged for common stock at the option of the bondholders are called
    5·1 answer
  • Which of the following are examples of natural barriers to entry? Correct Answer(s) Drag appropriate answer(s) here Smaller comp
    9·1 answer
  • The impacts of increasing petrol price on household​
    13·1 answer
  • A company purchased a machine for $8,000, the estimated value of the equipment at the end of its 6-year useful life is $600. Com
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!