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malfutka [58]
3 years ago
14

Jonas is a 60% owner of Ard, an S corporation. At the beginning of the year, his stock basis is zero. Jonas's basis in a $20,000

loan made to Ard and evidenced by Ard's note has been reduced to $0 by prior losses. During the year, Jonas's net share of Ard's taxable income is $10,000. At the end of the year, Ard makes a $15,000 cash distribution to Jonas. After these transactions, what is Jonas’s basis in his stock, and what is his basis in the debt? What is Jonas’s recognized capital gain?
Business
1 answer:
lana [24]3 years ago
8 0

Answer:

The correct answer is $0 , $0 and $5,000.

Explanation:

According to the scenario, computation of the given data are as follow:-

a) After these transactions, Jonas’s basis in his stock is decreased by the cash distribution and increased by the net income So, it's basis in his stock is $0.

b) Jonas basis in the debt is loan made to Ard and reduced to $0 by prior losses.

We can calculate the capital gain by using following formula:-

c) Jonas’s recognized capital gain= Cash Distribution–Taxable Income

= $15,000 - $10,000

=$5,000

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CDB stock is currently priced at $82. The company will pay a dividend of $4.65 next year and investors require a return of 10.9
lidiya [134]

Answer:

g = 0.05229 or 5.229% rounded off to 5.23%

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D1 / (r - g)

Where,

  • D1 is dividend in year 1 or the next dividend
  • g is the growth rate
  • r is the required rate of return

Plugging in the available values for P0, D1 and r, we can calculate the value of g.

82 = 4.65  /  (0.109 - g)

82 * (0.109 - g) = 4.65

8.938 - 82g  =  4.65

8.938 - 4.65 = 82g

4.288 = 82g

g = 4.288 / 82

g = 0.05229 or 5.229% rounded off to 5.23%

8 0
3 years ago
Which of these types of products usually involves the customer
kiruha [24]

Answer:

Shopping products

Explanation:

Shopping products usually involves the customer doing comparison shopping as customer like to compare price, quality, offers, discounts etc. There are several websites which help the customer in comparing the products available of various brands and then buying the product. It is helpful in making smart purchase and buying the products which are worth for the money spent. It give complete analysis of product quality and price.

8 0
3 years ago
How much money should you get selling gold for cash?
Viefleur [7K]
Enough to buy a Mercedes Benz.
7 0
3 years ago
As the Product Life Cycle curve approaches the decline state, a company can attempt to jumpstart the curve again by doing which
ExtremeBDS [4]

Answer:

correct answer is a. Find new users and new uses

Explanation:

As Product Life Cycle curve approach decline state

so company jump start by doing Find new users and new uses for the product help to attract the new target market and with the help of new style to product and usages so that it can increase sale and profits

and that company can do by change the element of its marketing mix as some excellent product last long in market that full fill to trends

so here correct option is a. Find new users and new uses

7 0
3 years ago
As a speaker, the best way to utilize the lectern during your speech is to
AlekseyPX

Answer:

<u>use when your speech has notes.</u>

Explanation:

A lectern is reading desk that is a tall stand with a sliding top to hold a book or notes.

Therefore, the best way to utilize the lectern during speech is to read notes while standing up and to rest ones hands on it when not making gestures. An example of this is seen when a President is giving a speech, he often uses a lectern.

7 0
3 years ago
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