Answer:
Option 3
Explanation:
Earnings & profits (E&P) is the measure of a corporation’s economic ability to pay dividends to its shareholders. An up-to-date E&P calculation is important for many corporate transactions, including determining whether a distribution to shareholders is a taxable dividend.
The E&P allocated to Andrew's distribution
= 160,000 * 150,000/(350,000+150,000)
= 160,000 * 150,000/500,000
= 48,000
Option C
Answer:
Yes you are correct on this researched it
Answer:
$55.134
Explanation:
Given
dividend paid on its stock = $8.25
Duration is next 13 years
P0 = dividend on its stock × (PVIFA of return on this stock,years)
Remember PVIF = (1 - (1 + r)^-n)/r
Where PVIFA = present value interest factor of annuity
r = interest rate per period
n = number of periods
Therefore
P0 = $8.25 × (PVIFA11.2%,13)
P0 = $55.134
Answer:
The answer is below
Explanation:
Given that Section 1231 assets are a term that is used to describe the real or depreciable trading property acquired for more than a year. For example, landed property, buildings, etc.
Hence, in this case, the correct answer or statement to the question are:
1. If Section 1231 assets are sold and the taxpayer has a realized loss, the loss is a fully deductible ordinary loss
2. If Section 1231 assets held long-term are sold for a realized gain, the taxpayer has a potential long term capital gain that may be taxed at favorable capital gains rates but this result often does not occur
Answer:
Specialization can lead to an increase in overall production
Explanation:
We specializes in something we are skilled at and will become better at and so we will be able to produce more of that goods and services
