I think more people will be willing to pay for a product that increases by .25 cents even as a small amount over $5 to $7.50 because it is still a small amount in comparison. Although in relateion to the changes, 25 cents with an amount so small is similar to $2.50 on a larger dollar amount, they are stillseeing a larger dollar amount increase.
Answer:
The tax consequences to Comet because of the stock redemption would be a reduction of $40,000 in E&P because of the exchange.
Explanation:
According to the given data we can conclude that the tax consequences to Comet because of the stock redemption would be Reduction of E& P due to exchange. In order to calculate the amount of Reduction we would have to make the following calculation:
Reduction of E& P due to exchange=Total E&P*Total voting Right Sold
According to the given data we have the following:
Total E&P=Comet has total E&P of $160,000
Total voting Right Sold=shares redeem by comet/shares by Pat+shares by Pam
Total voting Right Sold=50/ (100+100)
Total voting Right Sold=25%
Therefore, Reduction of E& P due to exchange=$160,000*25%
Reduction of E& P due to exchange=$40,000
The tax consequences to Comet because of the stock redemption would be a reduction of $40,000 in E&P because of the exchange.
Answer:
$14 million
Explanation:
Operating working capital = Operating current assets - Operating current liabilities
Operating working capital = $20 million - $6 million
Operating working capital = $14 million
The total net operating capital that XYZ, Inc. has is $14 million
Answer:
A valuation allowance is a contra account to deferred tax assets only-A.