1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Liula [17]
2 years ago
8

Regarding the tax treatment of payments to securities holders, it is true that _______________, while ____________________.

Business
1 answer:
Vladimir [108]2 years ago
6 0

Answer: (d)common stock dividends and preferred stock dividends are not tax-deductible; interest is tax-deductible

Explanation:

Here is the complete question:

Regarding the tax treatment of payments to securities holders, it is true that _________, while _________.

(a)interest and preferred stock dividends are not tax-deductible; common stock dividends are tax deductible

(b)interest and preferred stock dividends are tax-deductible; common stock dividends are not tax-deductible

(c)common stock dividends and preferred stock dividends are tax-deductible; interest is not tax-deductible

(d)common stock dividends and preferred stock dividends are not tax-deductible; interest is tax-deductible

Regarding the tax treatment of payments to securities holders, it is true that common stock dividends and preferred stock dividends are not tax-deductible while interest is tax-deductible.

It should be noted that the profit of a company is gotten when the expenses are deducted from the revenue. The dividends are not tax deductible as they are not expenses.

You might be interested in
Verify why the farmers' credit union chose to increase Farm B's line of credit but not Farm A's in the following scenario:
Shkiper50 [21]

Answer:

see below

Explanation:

he farmers must have considered the ability to repay back loans when making the decision. The ability of a business to meet its current obligations is expressed by the current ratio.

The current ratio or working capital ratio communicates a firm's ability to repay debts as they become due. The higher the ratio, the better.

the current ratio is calculated as current assets/current liabilities

For Firm A,

current ratio =$150,000/ $125,000.

=1.2

For Firm B,

current ratio =$100,000/$75,000

=1.333

Firm B has a better current ratio than Firm A. Firm B is in a better position to repay loans compared to Firm A.

5 0
3 years ago
According to economists, one reason few professional athletes have PhD’s is that the:
ryzh [129]

Answer:

d. opportunity cost of going to graduate school is too high.

Explanation:

The cost of choosing an alternative instead of another is known as the opportunity cost. In order to obtain a PhD, athletes would have to delay their professional careers, which would cause then to potentially miss out on years of millionaire contracts. Therefore, the opportunity cost of going to graduate school is too high.

5 0
3 years ago
Which component of a balance sheet includes a business’s debts, or the money that it owes to creditors for past transactions?
Volgvan

Answer:

1) Liabilities

2) Liabilities

Explanation:

6 0
3 years ago
MC Qu. 78 A firm expects to sell... A firm expects to sell 25,400 units of its product at $11.40 per unit and to incur variable
Leya [2.2K]

Answer:

$127000

Explanation:

Calculation to determine what The total contribution margin is

Using this formula

Total CM = Sales - VC

Let plug in the formula

Total CM=(25,400* 11.40) - (25,400 *6.40)

Total CM=$289,560-$162,560

Total CM= $127000

Therefore The total contribution margin is $127,000

8 0
2 years ago
The software package used as a standard across the industry is
slavikrds [6]
Industry depends more on technology every day so we can find packages that help with commercial activity, some of them are ERP, enterprise resource planning, CRM, customer relationship management, BI, business intelligence, and  WMS, warehouse management system, among others. 
3 0
2 years ago
Other questions:
  • The ________ stage of the new-product process assesses the total "business fit" of the proposed new product with the company's m
    13·1 answer
  • At ABC Services, Inc., all employees share a common set of beliefs and values that influence their behavior. This refers to orga
    15·1 answer
  • Studdard Controls recently declared a quarterly dividend of $1.25 payable on Thursday, April 25, to holder of record of Friday,
    9·1 answer
  • Landers Flynn Inc. has 1,000 shares of $5 cumulative preferred stock outstanding. Dividends were not paid last year. The corpora
    11·1 answer
  • Which of the following strategies is best to avoid groupthink
    12·1 answer
  • Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturin
    11·1 answer
  • What could explain why South​ Korea's gross domestic product​ (GDP) per capita increased so much faster since the 1970s than Nor
    12·1 answer
  • What happens when u eat too much hot cheetos.....asking for a friend​
    15·1 answer
  • All leaders tend to share several common characteristics.<br> O True<br> O False
    5·2 answers
  • Which of the following should be considered last when searching for financing? Question 1 options: Family members Banks Commerci
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!