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
nadya68 [22]
3 years ago
7

Wonder Corporation declared a common stock dividend to all shareholders of record on September 30, 20X3. Shareholders will recei

ve three shares of Wonder stock for each five shares of stock they already own. Diana owns 300 shares of Wonder stock with a tax basis of $90 per share (a total basis of $27,000). The fair market value of the Wonder stock was $180 per share on September 30, 20X3. What are the tax consequences of the stock dividend to Diana? A. $0 dividend income and a tax basis in the new stock of $180 per shareB. $0 dividend income and a tax basis in the new stock of $67.50 per shareC. $0 dividend income and a tax basis in the new stock of $56.25 per shareD. $10,800 dividend and a tax basis in the new stock of $180 per share
Business
1 answer:
lesantik [10]3 years ago
7 0

Answer:

<em>C. $0 dividend income and a tax basis in the new stock of $56.25 per share</em>

Explanation:

Existing tax basis

= 300 shares * $90

= $27,000

Latest stocks attributable to stock dividend to be given to Diana,

= 300 * 3/5

= 180

Therefore the total number of shares will be, after dividend,

= 180 + 300

= 480

So new tax basis per share

=27,000 / 480

<u><em>=  $56.25</em></u>

You might be interested in
Help hep help help help
Inessa05 [86]
I believe the answer is B
8 0
3 years ago
What should a potential employee consider before agreeing to a contract?
Monica [59]
The answer is d, you should always consider everything before signing your job contract
5 0
3 years ago
Cashiers at the supermarket are allowed to adjust the price of an item up to a maximum of​ $5.0 without getting the​ manager's a
Alekssandra [29.7K]
I didn't even read it
8 0
3 years ago
3. Prepare journal entries to record the machine’s disposal under each separate situation: (a) it is sold for $22,000 cash; (b)
Fofino [41]

Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr, $22,000

Accumulated depreciation-machine Dr, $148,800

($201,600 - $23,040 ÷ 6 × 5)

Loss on Sale of Machine Dr, $30,800

                 To Machine $201,600  ($192,000 + $8,000 + $1,600)

(To record Sale of the machine)

2. Cash Dr, $88,000

Accumulated depreciation-machine $148,800

($201,600 - $23,040 ÷ 6 × 5)

          To Gain on Sale of Machine $35,200

          To Machine $201,600

(Being Sale of the machine is recorded)

3. Cash Dr, $32,500

   Accumulated depreciation-machine Dr, $148,800

   Loss on disposal of Machine $20,300

                To Machine $201,600

(Being Sale of the machine is recorded)

7 0
3 years ago
When creating a data backup plan or policy, what five basic questions should be answered?
Tresset [83]
Each establishment, whether small or big, government-owned or private companies, always have to backup their files in case of emergencies. As you make your backup plan, you must come across these five basic key questions:

1. Are you backing up all your data? You have to sort your files to be backed up because storage can be limited.

2. How often is your data backed up? You must make sure to back up your data on a regular basis, if not day-to-day.

3. Who is responsible for your backups? For big companies, it is too big of a task for one person to shoulder. Usually, this is tackled by a department, usually the I.T. Department.

4. Do your backups actually work? You should test regularly if these back ups actually work by restoring data files every now and then.

5. Do you have right backup checks and balances in place? The I.T Department tackling backup plans is one thing. But there should also be checks and balances so that you have a backup of your backup. It's better to be safe than sorry.
6 0
3 years ago
Other questions:
  • Bonita Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $88,500
    7·1 answer
  • Managers might want to offer _____ to employees who want to talk to someone about their problems.
    8·2 answers
  • A dam is being built that will cost $500,000. The dam will cost $20,000 per year to operate and will require a maintenance expen
    12·1 answer
  • According to gaetano mosca, every society is stratified by ________ to ensure that society's work gets done.
    10·1 answer
  • Accounting profits are typically
    13·1 answer
  • Violet negotiates with Urban Credit Corporation to obtain a loan for $85,000 to buy a home. During the negotiations, Urban Credi
    9·1 answer
  • The following inventory information was taken from the records of Kleinfeld Inc.: Historical cost $12,000 Replacement cost $7,00
    12·1 answer
  • Demand is created through meeting customer buying criteria, credit terms, awareness (promotion) and accessibility (distribution)
    6·1 answer
  • Terps Company reported total assets of $2,400,000 and net income of $320,000 for the current year. The company determined that i
    11·1 answer
  • A ______ the demand curve represents a change in demand while a ______ the demand curve represents a change in the quantity dema
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!