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ira [324]
3 years ago
10

Meredith is a passive 30% member of the MNO LLC. She is not a managing member and she does not participate in any activities of

the LLC. Her interest is more in the nature of an investment. In the current year, Meredith's distributive share of income from the LLC was $50,000. In addition, she received a guaranteed payment of $40,000 for the use of her capital. Assume that her income from other sources exceeds $500,000. How much of Meredith's LLC income will be subject to the self-employment (SE) tax (under the Proposed Regulations) and the net investment income (NII) tax? (Disregard the additional Medicare tax on upper-income taxpayers.)a.$90,000 SE tax; $0 NII tax.b.$0 SE tax; $90,000 NII tax.c.$50,000 SE tax; $40,000 NII tax.d.$0 SE tax; $0 NII tax.e.$0 SE tax; $40,000 NII tax.

Business
1 answer:
goldfiish [28.3K]3 years ago
7 0

Answer

b.$0 SE tax; $90,000 NII tax.

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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FARO Technologies, whose products include portable 3 D measurement equipment, recently had 17 million shares outstanding trading
zysi [14]

Answer:

a. Market signaling studies suggest that the price of existing FARO shares will fall.

b. $60,000,000

c. 8.403%

d. $38.471

Explanation:

Given

New Shares: $200,000,000

Existing Shares: $17,000,000

Price per Share: 42

a.

Because the stock of the FARO Technologies is overvalued at the current price

b.

Expected Loss: 30% * New Shares Size

New Shares Size = $200,000,000 (given)

Expected Loss = 30% * $200,000,000

Expected Loss = $60,000,000

c.

Percentage of the value of FARO’s existing equity = Ratio of New Expected Share Value to Existing Share Value

Expected Share Value = $60,000,000

Existing Share Value = Price per Shares * Existing Shares

Existing Share Value = 42 * $17,000,000

Existing Share Value = $714,000,000

Percentage of FARO's Existing Equity = $60,000,000 ÷ $714,000,000

Percentage = 8.403%

d.

The price FARO should expect its existing shares to sell

= Price per Share (1 - Percentage of Existing Equity)

Price per Share = 42

Percentage Existing Equity = 8.403%

The price FARO should expect its existing shares to sell = 42(1-8.403%)

The price FARO should expect its existing shares to sell = 42(1-0.08403)

The price FARO should expect its existing shares to sell = 42 * 0.91597

The price FARO should expect its existing shares to sell = $38.47074

The price FARO should expect its existing shares to sell = $38.471 ----- Approximated

7 0
3 years ago
Green Cleaning purchased $500 of office supplies on credit. The company’s policy is to initially record prepaid and unearned ite
-Dominant- [34]

Answer:

Debit Office supplies, $500; credit Accounts payable, $500.

Explanation:

Purchase of supplies on credit will increase the supplies and increase the account payable balance as well. Supplies account is an asset account therefore it has debit balance and Account payable is a liability account so it has credit balance. To reflect the event following Journal entry is recorded.

Debit       Office supplies         $500

Credit      Accounts payable    $500

4 0
3 years ago
A company's Inventory balance at the end of the year was $204,200 and $218,000 at at the beginning of the year. Its Accounts Pay
dalvyx [7]

Answer:

$718,400

Explanation:

For computation of total amount of cash payments first we need to find out the decrease in merchandise, purchases and increases in accounts payable which is shown below:-

Decrease in merchandise = Balance at the beginning of the year - Balance at the end of the year

= $218,000 - $204,200

= $13,800

Purchases = Cost of goods sold - Decrease in merchandise

= $738,000 - $13,800

= $724,200

Increase in Accounts Payable = Accounts Payable balance at the end of the year - Accounts payable at the beginning of the year

= $102,000 - $96,200

= $5,800

Cash paid for merchandise = Purchases - Increase in Accounts Payable

= $724,200 - $5,800

= $718,400

6 0
3 years ago
Joshua borrowed $500 on January 1, 2017, and paid $25 in interest. The bank charged him a service charge of $15. He paid it all
Elena-2011 [213]

Answer: 8%

Explanation:

The Annual Percentage Rate or APR for short is calculated by dividing the finance cost by the total amount borrowed in the following manner,

APR = Finance Charge / Amount borrowed.

To calculate the Finance charge we add the interest and the service charge.

Finance charge = 25 + 15

= $40

Back to the APR formula we will have,

APR = Finance Charge / Amount borrowed

APR = 40/500

= 0.08

APR is 8%.

3 0
3 years ago
By definition, _____________ is the activity, set of institutions, and processes for creating, communicating, delivering and exc
ANTONII [103]

Answer:

The correct answer is E

Explanation:

Marketing is the procedure or the process of interesting the potential customers or consumers as well as the clients in products or services. In short, it is the procedure which involves distributing, promoting, selling and researching the services or the products.

Therefore, the marketing is the set of institutions, activity and the processes for communicating, delivering and creating that value for the clients, society and customers at huge.

4 0
3 years ago
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