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Taxation of Business Entities, 2016 edition7-65.) Wolverine Corporation made a distribution of $500,000 to Jim Har Inc. in par-t

marusya05 [52]

Answer:

a. Dividend

b. $500,000

Explanation:

a. As in the given case, the character of any income or gain recognized is the dividend of $500,000 which eligible him to avail 100% deduction of the dividend amount

b. The reduced amount would be lower of the distributed amount or 50% of Total E&P

Distributed amount is $500,000

And, the 50% of total E&P is = $8,000,000 × 50% = $4,000,000

So, the lesser amount is $500,000 which is reduced its total E&P

5 0

3 years ago

Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the com

jekas [21]

Answer and Explanation:

The preparation of the answer sheet is presented below;

Product Costs

Cost Item Direct Direct Manufacturing Period

Materials Labor Overhead Costs

Rent on factory

equipment $11,500

Insurance

on factory building $1,780

Raw materials $80,800

Utility costs for factory $920

Supplies for general office $320

Wages for

assembly line workers $59,700

Depreciation on office equipment $830

Miscellaneous materials $1,470

Factory manager’s salary $6,200

Property taxes on factory building $420

Advertising for helmets $14,900

Sales commissions $10,900

Depreciation on factory building $1,640

Total $80,800 $59,700 $23,930 $26,950

Now cost to produce one helmet is

= Total cost to produced ÷ number of helmets produced

= ($80,800 + $59,700 + $23,930) ÷ (10,000)

= ($164,430) ÷ (10,000)

= $16.44

5 0

3 years ago

What is the main source of diseconomies of scale? A Physical capital breaking more often with large output levels B Specializati

alina1380 [7]

Answer:

C. Limited ability to manage and coordinate larger amounts of inputs.

Explanation:

Diseconomies of scale: It is a situation when the average cost of production decreases as the output increases due to increase in the size of the organization and it become difficult and costly to coordinate or manage worker or other inputs. It also causes diminishing marginal product in the long run. It is opposite of economies of scale. Diseconomies arise due to use of unskilled laborer and outdated technologies for production.

5 0

3 years ago

Charleston Clothing purchased land, paying $ 110,000 cash and signing a $ 280,000 note payable. In addition, Charleston paid d

Reil [10]

Answer:

Dr Land 397,950

Cr Cash 117,950

Cr Notes payable 280,000

Explanation:

Certain ordinary and necessary costs can be included in the purchase cost of land:

cost of the land
title fees
applicable taxes
legal fees
broker fees
survey costs
leveling costs
zoning fees
etc.

In this case, the total purchase cost of the land = $110,000 + $280,000 + $1,400 + $650 + $5,900 = $397,950

3 0

3 years ago

A monopolist is forced to lower its price in order to sell another unit of its product. this describes the problem of:________

Alborosie

A monopolist is forced to lower its price in order to sell another unit of its product. this describes the problem of marginal revenue is less than price.

A monopoly is a market structure in which a single seller or a producer assumes that he has a dominant position in an industry or any sector. Monopolies are discouraged in the free-market economies as they try to stifle the competition and limit different substitutes for consumers.

In the United States, antitrust legislation restricts monopolies which ensures that one business cannot control a market and use that control to exploit its customers.

To know more about monopoly here:

brainly.com/question/10441375

#SPJ4

4 0

1 year ago