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
AlladinOne [14]
3 years ago
10

A parent holding company sells shares in its subsidiary such that the parent now owns only 65% of the subsidiary and, thus, the

tax returns of the parent and its subsidiary can't be consolidated. The parent receives annual dividends from the subsidiary of $2,500,000. If the parent's marginal tax rate is 34% and if the exclusion on intercompany dividends is 70%, what is the effective tax rate on the intercompany dividends, and how much net dividends are received?
Business
1 answer:
Volgvan3 years ago
5 0

Answer:

10.2%

Explanation:

Total annual dividends $2,500,000

the actual dividends received deduction is 80%, but since the question states that it is 70%, we must subtract 70% of $2,500,000 = $750,000

the company will be taxed only on $750,000 of dividends that it received:

total taxes paid = $750,000 x 34% = $255,000

effective tax rate = total taxes paid / total dividends received = $255,000 / $2,500,000 = 10.2%

You might be interested in
The median age for u.s. blacks currently is 30.9 years; for u.s. whites it is 42.3 years. (a) based upon this information, give
Marrrta [24]

There are quite a few reasons that this difference could be observed. The lower black median age could be connected to the greater number of births in the black minority group than in the whites. Another reason could be the aging of the non-Hispanic white group to a post child-bearing age and consequently the general aging of this subgroup of the population. In general, differences in group medians are due to the distribution of ages and the observed range of the ages in the two dissimilar population groups.

7 0
3 years ago
Michael has been saving his money and wants to invest it. after doing some research, he has decided to invest $20,000 into a cer
ivolga24 [154]

Answer: Micheal will earn an interest of $600 in the first year based on  nominal interest rates.

Since we need to compute the interest paid out at the end of year 1, we use the following formula in order to find the interest

SI = P * N * R

where

SI = Simple interest

P = Principal or initial amount invested

N = Number of years

R = Nominal interest rate

Nominal interest rate refers to the rate quoted on the CD or the rate agreed upon. In this question, the nominal interest rate is 3%.

Substituting the values in the formula above we get,

SI = 20000 * 1 * 0.03

SI = 600

8 0
3 years ago
Read 2 more answers
A customer has a margin account that shows a market value of $190,000 and a debit balance of $90,000. in addition, the account h
vodka [1.7K]

A maintenance margin is a minimum equity an investor ought to preserve withinside the margin account after the acquisition has been made. Hence,  the long market value at maintenance in this case is $120,000.

<h3>What do you mean by long market value?</h3>

Long market value at maintenance refers to the point where an account must fall (in market value) to reach minimum maintenance (25% of market value). ;

The maintenance margin is far presently set at 25% of the full value of the securities in a margin account as in step with Financial Industry Regulatory Authority (FINRA) requirements.

To calculate the <em> </em>long market value at maintenance,  divide the debit balance by .75 ($90,000 / .75 = $120,000)

Hence,  the long market value at maintenance is $120,000.

Learn more about long market value at maintenance:

brainly.com/question/15057471

#SPJ1

3 0
2 years ago
Complete the Analysis section using formulas with statistical functions. Use named ranges instead of cell references in the form
hram777 [196]

Answer:

The formula for average is =AVERAGE(E15,E16).

The formula for highest is =MAX(F15,F16).

The formula for lowest is =MIN(G15,G16).

Explanation:

In MS Excel, on the left hand side below the tool bar there is a small box which tells the cell name where the cursor is clicked, the name of the cell can be changed from here easily, click on the desired cell and then by clicking on the box you can enter the name of the cell. After a cell is renamed the formula can be written by simply putting the name of the cell instead of the original e.g. E13

The formula for average is =AVERAGE(E15,E16).

The formula for highest is =MAX(F15,F16).

The formula for lowest is =MIN(G15,G16).

The cells provided in the formula above is just an example and more than two cells can be selected.

5 0
3 years ago
All the following are examples of start-up costs EXCEPT
Zolol [24]

Answer:

A . payroll taxes.

Explanation:

Payroll taxes are imposed on the employers or employees of the company. In the examples of the question, the costs except for the payroll taxes are all paid by the company. Besides, payroll taxes are also not taxed on the company instead of on the employees' wages, which is funded by them. That is why all the examples are start-up costs except the payroll taxes

6 0
3 years ago
Other questions:
  • A type of high school diploma available to students with disabilities who are not able to meet the requirements for a standard d
    9·2 answers
  • At the headquarters of Meltdown Inc.,a temporary team consisting of members from its technical department and marketing departme
    10·1 answer
  • Erin works at a financial Institution. She has offered a housing loan to a customer. While carrying out the transaction, which l
    12·1 answer
  • "karla is taking two classes for a total of six credit hours. therefore she should be spending a minimum of ________ hours for r
    7·1 answer
  • Which technical review is held during the engineering and manufacturing development phase to assess the final design after the “
    8·1 answer
  • A company has increasing marginal returns. Total production is 5 units when the first worker is hired. Total production rises to
    7·1 answer
  • Use the following scenario and data for all questions During lunch time, customers arrive at a postal office at a rate of per ho
    15·1 answer
  • Economists look at any situation in terms of its component parts: the people making decisions, the environment in which they're
    10·1 answer
  • The valuation of a financial asset is based on the concept of determining the present value of future cash flows that this finan
    14·1 answer
  • MC Qu. 157 Current information for the... Current information for the Healey Company follows: Beginning raw materials inventory
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!