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harina [27]
3 years ago
10

From the perspective of the parent corporation, contrast the tax consequences of a subsidiary liquidation under the general nonr

ecognition rules with a subsidiary liquidation that follows a § 338 election.
Business
1 answer:
erik [133]3 years ago
6 0

Answer:

Section 338 allows the corporation to purchase stock and retain the basis of assets. It also allows adjusting the basis for the assets. Under section 338 the, if the corporation sold its assets, the transactions related to sale will be subjected to double tax. Whereas, if the corporation cause liquidation for the target asset's and then undergo for a sale is subjected to single tax.  

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Cheryl purchased 5 identical hollow pine doors and 6 identical solid oak doors for the house she is building. The regular price
almond37 [142]

Answer:

The answer to this question is option C. $560

Explanation:

We can let the price of each hollow pine door = d and of each solid oak door = 2d.

Since each pine door = 40, d = 40, and the regular price of each solid oak door is (2)(4) = 80.

With a 25% discount, each solid oak door is 0.75(80) = 60.

So, the six oak doors cost 6 x 60 = 360 dollars, and the five pine doors cost 5 x 40 = 200 dollars. Thus, the total is 560 dollars.

Hence the answer is C

6 0
3 years ago
Read 2 more answers
Samir, the new CEO of Cloud Marketing, has been with the firm for over 25 years. He was picked by the board to turn the 85-year-
IRISSAK [1]

Answer:

A. embedding organizational culture

Explanation:

4 0
2 years ago
The stock price of Webber Co. is $68. Investors require an 11 percent rate of return on similar stocks.
zheka24 [161]
To get the growth rate, we will follow the Gordon Growth modelP= D/(K-G)whereP= stock value=$68D= Expected dividend=$3.85G= Growth rateK= required rate of returnG =K-(D/P)Substitute the given valuesG= 0.11-(3.85/68)
G= 5.34%The growth rate for stock required is 5.34%
7 0
3 years ago
What will a contingency note contain?
kykrilka [37]

Answer:

Contingencies are potential liabilities that might result because of a past event

Explanation:

Reasonably possible losses are only described in the notes and remote contingencies can be omitted entirely from financial statements.

4 0
2 years ago
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (10,000
ivann1987 [24]

Answer:

See explanation section.

Explanation:

Requirement 1

New sales volume after increasing 100 units = (10,000 + 100) = 10,100 units. The revised net operating income is calculated as follows

                           Whirly Corporation’s

               Contribution format income statement

               For the year ended December 31 20YY

Sales Revenue (10,100 × 35) = 353,500 (Note - 1)

Less: Variable expense (10,100 × 20) = 202,000 (Note - 2)

Contribution Margin = $151,500

Less: Fixed Expense  $135,000

Net Operating Income $16,500

Note 1: Sale price per unit $350,000 ÷ 10,000 = $35

Note 2: Variable expense per unit $200,000 ÷ 10,000 = $20

Requirement 2

From requirement 1 we get,

Sale price per unit = $35

Variable expense per unit = $20

New sales volume after decreasing 100 units = (10,000 - 100) = 9,900 units. The revised net operating income is calculated as follows

                            Whirly Corporation’s

               Contribution format income statement

               For the year ended December 31 20YY

Sales Revenue (9,900 × 35) = 346,500

Less: Variable expense (9,900 × 20) = 198,000

Contribution Margin = $148,500

Less: Fixed Expense  $135,000

Net Operating Income $13,500

Requirement 3

From requirement 1 we get

Sale price per unit = $35

Variable expense per unit = $20

If the sales volume is 9,000 units, the revised net operating income is calculated as follows

                         Whirly Corporation’s

               Contribution format income statement

               For the year ended December 31 20YY

Sales Revenue (9,000 × 35) = $315,000

Less: Variable expense (9,000 × 20) = $180,000

Contribution Margin = $135,000

Less: Fixed Expense  $135,000

Net Operating Income           $0

If the company sells 9000 units, there will be no loss, no profit.

8 0
3 years ago
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