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mojhsa [17]
3 years ago
8

Aaron is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current y

ear, ABC has net income of $325,000 after deducting Aaron's $100,000 salary. In addition to his compensation, ABC pays Aaron dividends of $250,000. What is Aaron's qualified business income
Business
1 answer:
Svetllana [295]3 years ago
7 0

Answer:

$325,000

Explanation:

Aaron's salary which has already been substracted from the income of ABC, Inc. is allowable deduction and it will not be added back to the ABC Inc.'s income.

Dividend payment by an S corporation is not allowable for deduction and it will not be deducted from the net income.

Therefore, Aaron's qualified business income is $325,000.

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Art invested $100 two years ago at 8 percent interest. The first year, he earned $8 interest on his $100 investment. He reinvest
nikitadnepr [17]

Answer:

Option 4- Interest on Interest

Explanation:

Look we earned $8 in the first year which we invested in the same business. Okay now we again earned 8% on this $100 and $8 invested in the second year. The 8% on the $8 is $0.64 which is the interest earned on the interest invested in the previous year.

4 0
3 years ago
To an experimenter in frame s′, the meter stick's frame, did you make your two measurements simultaneously? if not, which end di
Likurg_2 [28]

No,  it is not possible to measure simultaneously.we have to measure the left end first.

The meter scale is the apparatus for dimension of the period of any item. instance: The duration of the square is 5 meters. right here, 5 is the magnitude of the period and meter is the unit of length. 1 meter of the meter scale is split into a hundred centimeters. Meter scale is used to degree length.

The metre scale alongside the object in order that the 'zero' mark on the metre scale coincides with one give up of the item and studying at the other cease of the size suggests the duration of the item.

Measurement is the procedure of comparison of the given physical amount with the regarded fashionable quantity of the same nature. as an example, dimension of duration the usage of Vernier Callipers and measurement of diameter of wire using screw gauge.

Learn more about measurements here:- brainly.com/question/26668346

#SPJ4

3 0
1 year ago
Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 15%. I am buying a firm with a
kondor19780726 [428]

Answer:

The correct solution is "$6,564.01". A further solution is given below.

Explanation:

The given values are:

beta,

= 1.6

market return,

= 15%

cash flow,

= $2,000

risk free rate of interest,

= 3%

Now,

The stock return will be:

= 3+ 1.6\times (15-3)

= 3+ 1.6\times 12

= 22.2 \ percent

The actual worth of the firm will be:

= \frac{cash \ flow}{rate \ of \ return}

= \frac{2000}{22.2 \ percent}

= \frac{2000}{0.222}

= 9,009

With 0.8 beta, the stock return will be:

= 3+ 0.8\times (15-3)

= 3+ 0.8\times 12

= 12.6 \ percent

So that I'm paying for the firm,

= \frac{2000}{12.6 \ percent}

= \frac{2000}{0.126}

= 15,573.01 ($)

Hence,

I'm paying,

= 15,573.01-9,009

= 6,564.01 ($)

6 0
3 years ago
Is the increase of VAT good or bad And the reasons
AleksAgata [21]

Answer:

increase of VAT is bad

Explanation:

In particular, raising VAT will have a negative effect on productivity growth. Increasing its rate reduces the economic incentives to trade and therefore hampers the division of labour and the associated productivity gains from increased specialisation, economies of scale and so on.

5 0
2 years ago
Identify the type of communication illustrated in the quotation.
snow_lady [41]
The type of communication illustrated is A) intrapersonal
3 0
3 years ago
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