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notsponge [240]
3 years ago
14

Wilma is one of five equal members of Polar, LLC. This year, Polar generates $5 million in profits. The company reinvests $4 mil

lion into the company, leaving $1 million to be divided equally among the members. How are federal income taxes paid o
Business
1 answer:
bogdanovich [222]3 years ago
3 0

Answer:

c. Wilma (and each of the members) pays taxes on their $1 million share ($5 million divided by 5) of profits.

Explanation:

Data provided in the questions

Generated profits = $5 million

Reinvested amount into the company = $4 million

Out of which $1 million is to be divided equally

based on the above information, the federal income tax should be paid by 5 members of $1 million each

Hence, the option c is correct  

And all other options are wrong

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Diversification is important in investing because...
Alenkinab [10]

Diversification is important in investing because "It helps you to balance your risk across different types of investments".

Explanation:

Diversification is a risk management approach that includes investing beyond or within various asset types to depreciate the ups and downs of economic exchanges. In different terms, diversification is thereby not owning all your eggs in one basket. Diversification goes by expanding properties beyond and within various asset types. Because asset types have their own individual financial rounds, when one class is making substantial profits, another may not be functioning as well. By expanding your purchases beyond and within distinct asset categories you’ll be in an immeasurable situation to offset the buoyancy of unique expenses.

8 0
3 years ago
Read 2 more answers
Karl Corporation was organized on January 2, 2018. During 2018, Karl issued 40,000 shares at $24 per share, purchased 6,000 shar
labwork [276]

Answer:

The answer is $1,404,000

Explanation:

Total amount realized from the issuance: 40,000 shares x $24

= $960,000

Treasury stock repurchased:

6,000 shares x $26

=$156,000

Net income = $600,000

The total amount of stockholders' equity at December 31, 2018 is:

Net income + amount realized from issuance - amount of treasury stock

$600,000 + $960,000 - $156,000

$1,404,000

3 0
3 years ago
Cranford Company completed and transferred out 2,700 units in May 2016. There were 300 units in the Work-in-Process Inventory on
Lynna [10]

Answer:

The cost of the work transferred-out during May is $18,630

Explanation:

For computing the cost of work transferred, first we have to compute the conversion cost per unit and material cost per unit

The conversion cost per uni = Conversion cost ÷ (transferred units + work in progress)

= $11,160 ÷ (2,700 + 300 × 30%)

= $11,160 ÷ (2,700 + 90)

= $11,160 ÷ 2,790

= $4 per unit

Now, material cost per unit = Material cost ÷ (transferred units + work in progress)

= $8,700 ÷ (2,700+300)

= $8700 ÷ 3,000

= $2.9 per unit

So, total cost of the work transferred is equals to

= Transferred units × conversion cost per unit + transferred units × material cost per unit

= 2,700 × $4 + 2,700 × $2.9

= $10,800 + $7,830

= $18,630

Hence, the cost of the work transferred-out during May is $18,630

6 0
3 years ago
Andrew paid $30 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Andrew
irinina [24]

Answer:

The total surplus from Andrew's sale to Nick is $35.

Explanation:

The total surplus is the sum of producer surplus and consumer surplus.

The consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the price he/she actually has to pay.

While producer surplus is the difference between the minimum price a producer is willing to accept for a product and the price he/she actually gets.

Consumer surplus for Nick

= $80 - $60

= $20

Producer surplus for Andrew

= $60 - $45

= $15

Total surplus from generated from Andrew's sale to Nick

= $20 + $15

= $35

3 0
3 years ago
Identify three ways you can group customers into market segments?
qaws [65]

Answer:

you could do demographic segmentation

behavioural segmentation

geographic segmentation

psychographic segmentation

notes: hope this helps

8 0
3 years ago
Read 2 more answers
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