Explanation:
Corporation Has Limited Liability. ...
Corporation is Owned by Shareholders. ...
Consider Double Taxation. ...
Corporations Have Their Own Lifespan.
It is true that capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.
<h3>What is interest capitalization?</h3>
This is when an unpaid interest is rolled over with the principal amount, which increase the overall amount to be paid. It is the inclusion of an unpaid interest to the principal balance of the loan taken.
Hence, Capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.
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Answer:
$212,000
Explanation:
Stockholders' equity = December 31, 2018 stockholders'equity + 2019 net income - 2019 cash dividend declarations + 2019 common stock issue
Stockholders' equity = $163,000 + $21,700 - $5,700 + $33,000
Stockholders' equity = $212,000
So, the total stockholders' equity as of December 31, 2019 is $212,000
Answer:
True
Explanation:
"Nonliquidating corporate distributions are distributions of cash and/or property by a continuing corporation to its shareholders. At the shareholder level, a nonliquidating corporate distribution can produce a variety of tax consequences, including taxable dividend treatment, capital gain or loss, or a reduction in stock basis. [...]
The corporate-level tax consequences of a nonliquidating corporate distribution depend on whether the distribution consists of cash or property (other than cash). The corporation does not recognize gain or loss when it distributes cash to shareholders or when it redeems stock in exchange for cash payments."
Reference: Ellentuck, Albert B. “Understanding the Effects of Nonliquidating Distributions on Corporations.” The Tax Adviser, 1 Jan. 2009
Answer:
the estimated total cost for the coming year is $12,227.60
Explanation:
The computation of the estimated total cost is shown below:
y
= Constant coefficient + independent variable coefficient × number of horses
= $5,240.20 + $22.54 × 310 horses
= $5,240.20 + $6,987.40
= $12,227.60
This is the answer but not the same is to be given in the options
hence, the estimated total cost for the coming year is $12,227.60