Answer:
What is Swan’s taxable gain on the distribution of the cottage?
Fair market value of property = 200000
Less: adjusted basis of property= 115000(150000-35000)
Taxable gain on distribution = 85000
What is Swan's current E&P after the distribution on 12/31/13?
Swans current E&P = 300000
Add: taxable gain on distribution = 85000
Less: distribution made = 165000(200000-35000)
After distribution E&P = 220000
What is the taxable dividend to the shareholder (if any)?
Taxable dividend to shareholders = 200000-35000 = 165000
What is the shareholder's basis in the cottage?
Shareholders basis is FMV of property i.e. 200000
Answer:
Concord Co.
Income Statement
For the Year Ended December 31, 2020
Revenues:
Sales revenue $555,600
Expenses:
Cost of goods sold ($320,200)
Salaries and wages expense ($120,100)
Other operating expenses ($11,210)
Income tax expense ($25,590)
Net income: $78,500
Earnings per share: $0.74
Increase in value of company reputation and unrealized gain on value of patents are not included in this income statement.
According to efficiency wage theory the increase in wages will raise productivity but increase unemployment.
Explanation:
Salaries for productivity are greater than salaries of harmony. They increase productivity, but also create a labour surplus that creates greater unemployment.
The Efficiency Pay Theory states that businesses can operate efficiently and make them more competitive by paying salaries that surpass the margin.
Across four ways, businesses will benefit from productivity wages : increased workloads, reduced employee turnover, better quality workers, and healthier personnel. There are three different theories.
The idea behind the principle of effectiveness is that higher salaries can lead to increased efficiency, as employees are more motivated to work for greater salaries. In principle, higher pay can lead to higher labour productivity. The salary increases will cover themselves in this situation.
Answer:
Actually there are 5 problems related to NAFTA according to critics.
1) Mexico's farmers were put out of business, with free trade US exported agricultural products to mexico at low price. which in turns put local farmers out of business.
2) US jobs were lost, labour in mexico is cheap, so many companies moved their operations and factories to mexico for cheap labour. Which makes the US labour unemployed.
3) At US wages were suppressed, as many companies moved to Mexico other companies used this treat to pay labour low wages.
4) Mexico environment was highly affected, because of high competition local farmer used more fertilizers, fungicides and pesticides which affected their environment a lot.
5) Free US access to Mexican trucks, this was highly opposed by US local trucking companies as they will lose their business if mexican trucks were given free access to US. So, this point was rejected in 2008.
For Q1, you have to set these equations equal to each other because it is asking how much of x is necessary to make the same amount of y, so:
3995 + 225.50x = 6500 + 100.25x
solve for x:, and get x=20
so 20 tons of sugar will give the companies the same cost.
For Q2: you need to plug in x=20 into either one of the original equations, and solve for y because this will give you the cost of transportation, so:
y= 3995 + 225.50(20)
y=$8,505 for the total cost