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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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CaHeK987 [17]

Answer:

The correct answer is c. poorly performing firms.

Explanation:

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In recent years, and more specifically following the onset of the financial crisis, the international community has understood the importance of listed companies being managed in an adequate and transparent manner. The good governance of companies is the basis for the functioning of markets, as it favors credibility, stability and contributes to boosting growth and wealth generation.

The weakness shown by corporate governments of large organizations in the past has multiplied the demands for transparency, truthfulness, good practices and responsible business behavior on the part of investors, consumers and society in general, which not only pay attention anymore. to financial indicators, but they also want to know how those results have been achieved.

4 0
4 years ago
Brinkman Corporation bought equipment on January 1, 2007 .The equipment cost $90,000 and had an expected salvage value of $15,00
gavmur [86]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years.

Depreciable cost= purchase price - salvage value

Depreciable cost= 90,000 - 15,000= $75,000

8 0
4 years ago
The newspaper reported last week that Bennington Enterprises earned $34.07 million this year. The report also stated that the fi
Arada [10]

Answer:

Earning growth rate will be 12 %

Explanation:

We have given that Bennington Enterprises earned $34.07 million this year.

Return equity = 16 % = 0.16

Retained earning = 75 % = 0.75

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We know that growth rate is given by

Growth rate = Return on equity × retained earning

So firm's growth rate will be equal to = 0.16×0.75 = 0.12

Therefore the earning growth rate will be 12 %

6 0
4 years ago
Sara earned $2,500 as a life guard over the summer. This was her only job and income taxes were deducted from her paychecks by h
Stella [2.4K]
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4 0
3 years ago
In order to create the right strategies for decision-making, managers must have objective, accurate, and timely: Select one: a.
Rina8888 [55]

Answer:

The answer is D

Explanation:

5 0
3 years ago
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