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anastassius [24]
3 years ago
5

During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of $490,000. In addition, during the

year it received $20,000 in income from interest on bonds it help in Zig Manufacturing and received $20,000 in income from dividends on its 5% common stock holding in Tank Industries, Inc. Shering is in the 40% tax bracket and is eligible for a 70% dividend exclusion on its Tank Industries stock.A. Calculate the firm's tax on its operating earnings only.B. Find the tax and after-tax amount attributable to dividend and interest income.
Business
1 answer:
mixas84 [53]3 years ago
3 0

Answer:

A) Shering's operating activities reported a $490,000 pretax profit, and since their tax rate is 40%, their taxes = $490,000 x 40% = $196,000

B) Shering only has to include 30% of the dividends received from Tank as taxable income = $20,000 x 30% = $6,000, plus the $20,000 from bonds form Zig = $26,000

Shering will owe $26,000 x 40% = $10,400 in taxes, and its after tax income = $40,000 - $10,400 = $29,600

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ssume that interest rate parity exists. You expect that the one-year nominal interest rate in the U.S. is 7%, while the one-year
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Answer:

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Explanation:

Asset Turnover = Total sales / Average Assets

Last years turnover ratio was 2.0 so assume Sales were $20 and Assets were $10 which would give the turnover of 2.0

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6 0
3 years ago
Roger remembers from a business class he took years ago in college that there are several business forms to choose from. Each fo
earnstyle [38]

Answer:

This question is incomplete, the options are missing. The options are the following:

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c) S Corporation

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e) Limited Liability Partnership

And the correct answer is the option D: Limited Liability Company.

Explanation:

To begin with, the name of <em>"Limited Liability Company" </em>refers to a type of form of business, in the field of business law, that is helpful to adapt and use for some owners regarding the particular characteristics that this form gives to them. So once said that, this type of business form has the characteristics of both a corporation and a partnership so that means that it is quite flexible and can adapt depending on the situation that the owner is having. Moreover, one of the most important aspects of this type of form is the fact that the owner has a limited liability to what happens in the company so that means that his private assets are secure under this form.

6 0
3 years ago
Liu Electronics budgeted sales of $400,000.00 for the month of November and cost of goods sold equal to 65 percent of sales. Beg
Leno4ka [110]

Answer:

Purchases= $252,000

Explanation:

Giving the following information:

Sales= $400,000

Cost of goods sold equal to 65 percent of sales.

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8 0
3 years ago
Daniel believes that a chemical company is responsible for contaminating some land that he owns. He files suit against the chemi
Tresset [83]

Answer:

Arbitration can work instead of the suit filed by Daniel against a chemical company is responsible for contaminating some land that he owns if they give him a worthy compensation.

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Arbitration means to settle out of court.

This method is used in resolving disputes outside of court to avoid certain legal documents that might haunt the company in future.

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