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
S_A_V [24]
3 years ago
10

On September 30, Silver Corporation, a calendar year taxpayer, sold a parcel of land (basis of $400,000) for a $1 million note.

The note is payable in five installments, with the first payment due next year. Because Silver did not elect out of the installment method, none of the $600,000 gain is taxed this year. Silver Corporation had a $300,000 deficit in accumulated E&P at the beginning of the year. Before considering the effect of the land sale, Silver had a deficit in current E&P of $50,000. Sam, the sole shareholder of Silver, has a basis of $200,000 in his stock. If silver distributes $900,000 to Sam on December 31,
how much income must he report for tax purposes?
Business
1 answer:
lora16 [44]3 years ago
3 0

Answer: Sam must report $700,000($900,000 - $200,000) for tax purposes.

Explanation:

Because Sam is the sole shareholder of Silver, and has a basis of $200,000 in his stock. Once Silber distributes $900,00to Sam on December 31

You might be interested in
More Hits Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the fol
yuradex [85]

Answer: See explanation

Explanation:

AP = 4.15

SP = 4.0

SQ = 114000 × 2 = 228000

1. Direct Materials Price

= (AQ × AP) - (AQ × SP)

= (246000 × 4.15) - (246000 × 4.0)

= 1020900 - 984000

= 369000 U

2. Direct Materials Quantity

= (AQ × SP) - (SQ × SP)

where SQ = 114000 × 2 = 228000

= (220000 × 4.0) - (228000 × 4.0)

= 880000 - 912000

= 32000 F

3. Direct Labor Price

= (AH × AR) - (AH × SR)

= (58700 × 9.8) - (58700 × 10)

= 575260 - 587000

= 11740

4. Direct Labor Quantity

= (AH × SR) - (SH × SR)

where, SH = 114000 × ½ = 57000

= (58700 × 10) - (57000 × 10)

= 587000 - 570000

= 17000 U

5. Total Overhead Variances

= 352000 - (57000 × 6)

= 352000 - 342000

= 10000 Unfavorable

Check attachment for further details

8 0
3 years ago
What is the present value of $2,025 per year, at a discount rate of 7 percent, if the first payment is received 6 years from now
Marysya12 [62]

Answer:

The correct answer is $20,369.65.

Explanation:

According to the scenario, the computation of the given data are as follows:

Payment (pmt) = $2,025

Discount rate ( rate) = 7%

Time period ( Nper) ( 6 -23 years) = 18 years

So, we can calculate the Present value by using financial calculator.

Attachment is attached below.

So, Present Value = $20,369.65

7 0
3 years ago
The citizens of France, Belgium, and Finland are upset by a recent trade law enacted in the European Union which they feel negat
BigorU [14]

Answer:

The European Parliament to resolve their concerns.

Explanation:

The European Parliament bis the legislative section of the European Union. The European Parliament is made up of 705 members and is the 2nd largest parliament in the world.

When there is dispute with regards to EU laws the European Parliament is the body that resolves it. They help implement laws enacted by the European commission. They can amend or reject a legislature, and they also make proposal for legislation.

So citizens of France, Belgium, and Finland will approach the European Parliament when they are upset by a recent trade law enacted in the European Union which they feel negatively impacts their respective economies.

3 0
3 years ago
Read 2 more answers
Why markets can only supply private goods efficiently?
kirill [66]
<span>Private good is a product and/or service produced by a private business and purchased to increase the utility and/or productivity of the buyer. The majority of the goods and services consumed in a market economy are private goods, and their prices are determined by the market forces of supply and demand. Private goods are both excludable and rivalrous, where excludability means that producers can prevent some people from consuming the good or service based on their ability or willingness to pay and rivalrous indicates that one person's use of a product reduces the amount available for use by another. In practice, private goods exist along a continuum of excludability and rivalry and can even show only one of these traits.</span>
7 0
3 years ago
Weatherly Company reported the following results for the year ended December 31, 2016, its first year of operations: Income (per
disa [49]

Answer:

Deferred tax asset = $402,500

Explanation:

given data

Income before income taxes = $3,300,000

Taxable income= $4,450,000

tax rates 2016 = 35%

tax rates 2017 = 30%

solution

first we will take here difference between Income before income taxes and Taxable income that is

= Taxable income -  Income before income taxes  

= $4,450,000 - $3,300,000

= $1,150,000

we can say now taxable income is the higher income than income before income tax

so we get here Deferred tax asset that is

Deferred tax asset = 35% of $1,150,000  

Deferred tax asset = $402,500

3 0
3 years ago
Other questions:
  • Structuring a Keep-or-Drop Product Line Problem with Complementary Effects Shown below is a segmented income statement for Hicko
    14·1 answer
  • Which section of a professional business letter contains the purpose of the correspondence?
    7·1 answer
  • Cheyenne Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the trans
    10·2 answers
  • While developing a new product line, Cook Company spent $3 million two years ago to build a plant for a new product. It then dec
    8·1 answer
  • Loraine is a shareholder of Taley Corp. She would like to inspect and copy the company's minute book, accounting records, and sh
    5·2 answers
  • ECONOMICS
    9·1 answer
  • Cost of debt For which capital component must you make a tax adjustment when calculating the weighted average cost of capital (W
    9·1 answer
  • What size hammer makes a good jig for finding the height of an outlet box?
    15·1 answer
  • Carmie Iria, the director of a systems project committee, has received management approval for the implementation of a new accou
    14·2 answers
  • Donors give because they expect something in return.Give reasons why they donate​
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!