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Katena32 [7]
3 years ago
13

Sparrow Corporation is a calendar year taxpayer. At the beginning of the current year, Sparrow has accumulated E & P of $33,

000. The corporation incurs a deficit in current E & P of $46,000 that accrues ratably throughout the year. On June 30, Sparrow distributes $20,000 to its sole shareholder, Libby. If Libby's stock has a basis of $4,000, how is she taxed on the distribution?
Business
1 answer:
Kobotan [32]3 years ago
4 0

Answer: The Dividend income is $10,000 whereas tax free recovery of basis is $4,000, and capital gain is $6,000.

Explanation: The accumulated and current E & P must be totaled because one half of the loss is incurred in June 30 ($46,000/2 = $23,000). So now you would reduce the accumulated E & P $33,000 with $23,000 which equals to $10,000. This is the balance in E & P which is the dividend income that would be distributed.

The other $10,000 of the distribution is first recovery of the capital which is $4000 and then a $6,000 capital gain.

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An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and ge
torisob [31]

Answer:

Mentor

Explanation:

The mentor is the person who has knowledge, experience, skills and he or she is able to guide, motivate, gives the training, supervise the lower skill employees so that they can perfect in their work.

But for motivating, guiding the employees we need to appoint the right people who belong from organizational sponsor so that the lower level employees could able to accomplish their tasks so that the overall objective of the company could be accomplished.

3 0
4 years ago
Your coin collection contains fifty-four 1941 silver dollars. Your grandparents purchased them for their face value when they we
s344n2d4d5 [400]

Answer:

The correct answer is 3.

Explanation:

Giving the following information:

Your coin collection contains fifty-four 1941 silver dollars. These coins have appreciated at a 10 percent annual rate.

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

i= 0.10

PV= 54

n= 2060 - 1942= 119

FV= 54*1.10^119= 4,551,172.47

6 0
4 years ago
When the amount of revenue collected in advance decreases during an accounting period:(A) Accrual-basis revenues exceed cash col
otez555 [7]

Answer:

The correct answer is letter "A": Accrual-basis revenues exceed cash collections from customers.

Explanation:

Revenue collected in advance are profits collected usually at the beginning of a contractual agreement that implies obligations from the firm for a certain time. For instance, insurance companies charging a one-time payment for an annual policy fall into this category.

The accrual basis of accounting states that profits are reported on the income statement as they are earned. In that case, if the revenue collected in advance decreases, the accrual-basis revenues will be higher than the cash collections from customers under the advanced payment method.

5 0
3 years ago
1. Which of the following is the money or other resources needed to pay for a part or
soldi70 [24.7K]

Answer:

A. Investment

Explanation:

The money that you need to pay to purchase and acquire a part of a company is an investment. This investment can be used, for example, to buy stock. A stock is a title of ownership of a company for the percentage of the company that the stock represents. If I own 100 stocks that represent 1% of a company, then, I own 1% of that company. In other words, my investment (my money) is worth 1% of said company.

5 0
3 years ago
Most organizations are structured along functional lines or areas. Write a 1-2 page paper to communicate these functional aspect
Rufina [12.5K]

Answer:

m

Explanation:

4 0
3 years ago
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