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dlinn [17]
3 years ago
9

Larry, the sole shareholder of Brown Corporation, sold his Brown stock to Ed on July 30 for $270,000. Larry's basis in the stock

was $200,000 at the beginning of the year. rown had accumulated E & P of $120,000 on January 1 and has current E & P of $240,000. During the year, Brown made the following distributions: $450,000 of cash to Larry on July 1 and $150,000 of cash to Ed on December 30.How much of the current E & P is allocated to Larry's distribution?
Business
1 answer:
Mrac [35]3 years ago
3 0

Answer:

$180,000

Explanation:

Given that

Current E & P = $240,000

Distribution to Larry = $450,000

The computation of current E & P is allocated to Larry's distribution is shown below:-

Current E & P is allocated to Larry's distribution = (Current E & P × Distribution to Larry) ÷ Total distribution

= ($240,000 × $450,000) ÷ $600,000

= $108,000,000  ÷ $600,000

= $180,000

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Tora Co. plans to produce 1,020 units in July. Each unit requires two hours of direct labor. The direct labor rate is $20 per ho
kompoz [17]

Answer: $40,800

Explanation:

Each unit requires 2 hours of direct labor.

1,020 units would therefore require:

= 1,020 * 2

= 2,040 hours of labor

The direct labor rate is $20 per hour. If there are 2,040 hours to be worked, the cost would therefore be:

= 20 * 2,040

= $40,800

7 0
3 years ago
Harmony Company sells handminusknit scarves. Each scarf sells for $ 45. The company pays $ 70 to rent vending space for one day.
choli [55]

Answer:

2.12, rounded up to 3

Explanation:

To solve the equation, we first need to set up an equation.

Let x represent the number of scarves. We want one side of the equation to be the amount earned and the other to be the cost

45x is how much they earn since each scarf is $45

70+12x is how much they cost for rent and production

45x=70+12x

Subtract 12x from both sides

33x=70

Divide both sides by 33

x=2.12

It says we should round up so 3 scarves to break even

5 0
3 years ago
Precise Electronics Inc. has projected EBIT to be $225,000 for next year. Their tax rate is 21% and there is $`500,000 in equity
777dan777 [17]
the answer is no just took test
4 0
3 years ago
Input definition.......
Elan Coil [88]
Something that is put in.

The act or process of putting in.

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3 0
3 years ago
56. Anne LLC purchased computer equipment (5-year property) on August 29 with a basis of $30,000 and used the half-year conventi
klasskru [66]

Answer:

B. $1,728

Explanation:

Data given in the question

Number of computer equipment purchased = $30,000

So, by considering the above information the maximum depreciation expense is

= Number of computer equipment purchased × depreciation rate under MACRS for 5 years property × half year basis

= $30,000 × 11.52% × 0.5

= $1,728      

Refer to the MACRS table to find out the depreciation rate

3 0
3 years ago
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