Answer:
Explanation:
Part A
S Corp.
Description
C corp.
Description
1.
Pretax earnings
90000
(1000000*9%)
90000
(1000000*9%)
2.
Entity level tax rate
0%
21%
3.
Entity level tax
0
18900
(1) × (2)
4.
Earnings after-entity-level tax
90000
(1) – (3)
71100
(1) – (3)
5.
QBI Deduction
(18000)
(1) × 0.20
NA
6.
Net income taxable to owner
72000
(4) + (5)
71100
(4) distributed as dividend
7.
Owner level marginal tax rate
37%
23.8%
8.
Owner-level tax
26640
(6) × (7)
16922
(6) × (7)
After-tax cash flow
63360
(1) – (8)
54178
(6) – (8)
B
Owner-level tax
26640
(6) × (7)
16922
(6) × (7)
After-tax cash flow
63360
(1) – (8)
54178
(6) – (8)
Overall tax rate
29.60%
(8)/(1)
39.80%
[(3) + (10)]/(1)
Answer:
a change in buyer tastes.
Explanation:
Increase in demand for doughnut can be caused by:
1. Change in buyers tastes: if the taste of consumers change in favour of doughnut, the demand for doughnut increases.
2. Increase in the price of substitutes: if the price of a substituite e.g. bagel increases, the demand for doughnut increases because consumers would subsituite a bagel for doughnut. Coffee can't be considered as a subsituite for doughnut.
3. Increase in income : if income increases, demand for doughnut increases.
Increase in cost of production reduces supply and doesn't affect demand.
I hope my answer helps you
Answer:
The journal entries are shown below:
Explanation:
The journal entries are as follows
On August 4
Account Receivable $610
To Sales Revenue $610
(Being the goods sold on credit basis is recorded)
On August 7
Sales Return and Allowances $60
To Accounts Receivable $60
(Being the sales allowance is recorded)
On August 12
Sales Discount $11
Cash $539
To Accounts Receivable $550
(Being the amount paid is recorded after considering the 2% discount
Answer:
$0
Explanation:
Based on the information given what the STOCKHOLDERS RECEIVE if they currently have 2million shares with a par value of $1 each will be $0 reason been that the Stockholder claims have the LOWEST PRIORITY in a bankruptcy based on the fact that the debts amount has exceeded the firm's value which means that there is $0 amount left for current shareholders.
Answer:
(1) 1,400 units
(2) $21,000
Explanation:
Given that,
Selling price = $15 per unit
Variable expense = $12 per unit
Fixed expense = $4,200
Contribution margin per unit:
= Selling price - Variable expense
= $15 - $12
= $3
Contribution margin ratio
:
= Contribution margin per unit ÷ Selling price per unit
= $3 ÷ $15
= 0.2 or 20%
1. Break even point:
= Fixed expense ÷ Contribution margin per unit
= $4,200 ÷ $3
= 1,400 units
2. Break even point in dollar sales:
= Fixed expenses ÷ Contribution margin ratio
= $4,200 ÷ 20%
= $21,000