Answer:
$600,000
Explanation:
Calculation for how much goes to the preferred stockholders
Using this formula
Preferred stockholders=Number of preferred shares outstanding * Preferred stock par value * Percentage of Annual dividend
Let plug in the formula
Preferred stockholders=50,000 x $100 x 0.12
Preferred stockholders= $600,000
Therefore If dividend is paid the amount of $600,000 goes to the preferred stockholders
Answer:
$3,886
Explanation:
Since SELF EMPLOYMENT TAX is 15.3% of your wages which is why the Internal Revenue Service (IRS) make it possible for you to deduct your employer equal portion of your self employment taxes that the employer pays during the year which is 7.65% Calculated as (15.3%/2) which therefore means that Samir may reduce his ESTIMATED TAX PAYMENTS by $3,886 [$55,000 x 0.9235 x 0.0765 = $3,886] while the remaining 7.65%( 15.3% -7.65%) are not deductible because they correspond to employee taxes.
Therefore he may reduce his ESTIMATED TAX PAYMENTS by $3,886.
Answer:
B. Capital Rationing
Explanation:
Capital rationing is a technique used by organizations and companies whereby restrictions are placed on the projects that the organization or company can undertake or limitations on the capital that can be invested by the organization or company. This limitations are placed because the organization or company aim is directed at choosing only the most profitable investment for capital investment decision or carrying out only the most profitable projects. It involves choosing amongst alternative investment.
Answer:
(D) $4,000
Explanation:
Initial amount distributed is $31,000
Earnings and Profit (E & P) $25,000
Therefore, Distribution in excess of earnings and Profit would be;
= Initial amount distributed - Earnings and Profit
=$31,000 - $25,000
=$6,000
Sally basis in her Dixie stock after the distribution would be ;
= Basis - Excess distribution
=$10,000 - $6,000
=$4,000