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
yawa3891 [41]
4 years ago
15

Dixie Corporation distributes $31,000 to its sole shareholder, Sally. At the time of the distribution, Dixie's Earnings and Prof

its (E&P) is $25,000 and Sally's basis in her Dixie stock is $10,000. Sally's basis in her Dixie stock after the distribution is (A). $31,000 (B). $25,000 (C). $10,000 (D). $4,000
Business
1 answer:
Radda [10]4 years ago
4 0

Answer:

(D) $4,000

Explanation:

Initial amount distributed is $31,000

Earnings and Profit (E & P) $25,000

Therefore, Distribution in excess of earnings and Profit would be;

= Initial amount distributed - Earnings and Profit

=$31,000 - $25,000

=$6,000

Sally basis in her Dixie stock after the distribution would be ;

= Basis - Excess distribution

=$10,000 - $6,000

=$4,000

You might be interested in
Describe the key elements of IKEA’s globally successful business model. What are the sources of IKEA’s competi-tive advantage?
elena-14-01-66 [18.8K]

Answer:

following are the solution to this question:

Explanation:

The key factors for IKEA's growth are as follows:

It made simple to use goods as well as the technique of "do it yourself" allows employees to increase costs lower, prices fair, a good understanding of the population it wants to target, goods clean with a clear aesthetics.

These were also regarded for fair payer money for staff and vendors, as well as the mechanism is open. Its shops also provide accommodation for the whole family.

7 0
3 years ago
The area of accounting concerned with providing internal users with information is called.
anzhelika [568]

Management accounting is an area of accounting known for providing information to internal users.

<h3>What is management accounting?</h3>

Management Accounting is an area of accounting that refers to providing information to support internal management decisions. This accounting assist  managers identify problem areas in budgeting and then develop a different plan to addressing those problems.

The role of management accounting includes:

  • Monitoring costs
  • Conduct audits
  • Identify past trends and predict future needs.

Therefore, the area of accounting concerned with providing internal users with information is known as management accounting.

Learn more about management accounting here : brainly.com/question/1283492

7 0
2 years ago
The Acme Toy Company introduced a new electric train, the Silver Bullet, in its Christmas catalog last year. Within four days of
timurjin [86]

Answer:

<u>Stock-out</u> cost

Explanation:

Stock out is a scenario in business where a company sells all available units of a product and runs out of inventory for that product. <u>When this happens, the organization loses revenue as it cannot meet the subsequent demands of customers</u>.

This cost incurred is known as stock out cost.

So, <em>even though Jeff Murrah, the sales manager, was delighted with the product's success, his excitement was overshadowed by the </em><u><em>stock out cost</em></u><em> his division would incur.</em>

3 0
3 years ago
Advertising Costs $ 12 comma 000 Indirect Labor 7 comma 000 ​CEO's Salary 460 comma 000 Direct Labor 54 comma 000 Indirect Mater
sineoko [7]

Answer:

$510,130

Explanation:

Costs can be classified into two categories: Product Costs and Period Costs. Product costs are the manufacturing costs that are incurred in the production of goods and services. Under absorption costing, product costs include direct materials, direct labor, indirect materials, indirect labor, and other factory overhead. These costs are capitalized and expensed out when related goods and services are sold out.

On the other hand, period costs are selling & administrative expenses. These costs are never capitalized and expensed out in the statement of profit or loss as soon as incurred. Examples of period costs are advertisement expenses, depreciation expenses (not related to factory), sales commissions, administrative salaries and wages.

<u>Calculation of Period Costs</u>

Advertising costs                                                           $12,000

CEO's salary                                                                  460,000

Delivery vehicle depreciation                                            1,230

Administrative wages and salaries                                 36,900

Total Period Costs                                                        $510,130

4 0
4 years ago
Read 2 more answers
Logistics Solutions provides order fulfillment services for dot merchants. The company maintains warehouses that stock items car
madreJ [45]

Part 1.1  - Variable overhead cost incurred to fill the order for the 120,000 items is $7,800.

Part 1.2  - Difference between standard and actual variable overhead cost is $440.

Part 3 - Difference between standard and actual variable overhead cost is $440.

<u>Explanation:</u>

It is given that the number of order is 120,000 items and calculated standard variable overhead cost per order for one item is $0.065. Variable overhead cost incurred to fill the order for the 120,000 items can be calculated by multiplying the number of order of the items with the calculated standard variable overhead cost per order for one item. Hence, the variable overhead cost incurred to fill the order for the 120,000 items is $7,800.

It is given that the actual variable overhead cost is $7,360 and calculated standard variable overhead cost is $7,800. Difference in standard and actual variable overhead cost can be calculated by deducting the actual variable overhead cost from the standard variable overhead cost. Hence, the difference between standard and actual variable overhead cost is $440.

Calculated variable overhead rate variance is $115 favorable and the variable overhead efficiency variance is $325 favorable. Difference between standard and actual variable overhead cost is the total of variable overhead rate variance and variable overhead efficiency variance. Hence, the difference between standard and actual variable overhead cost is $440.

7 0
3 years ago
Other questions:
  • Jacoby Company received an offer from an exporter for 30,000 units of product at $15 per unit. The acceptance of the offer will
    8·1 answer
  • Rocky River Company is a pricetaker and uses target pricing. Refer to the following information:Production volume 602,000​ units
    7·1 answer
  • When economists refer to "demand," they are speaking of: how much everyone wants of all products bought and sold in the nation.
    15·1 answer
  • Which of the following is the most important thing to remember when looking for a job?
    6·2 answers
  • The calculation of GDP does NOT include the value of:________1. Michelin tires purchased by Canadian car collectors. 2. Goodyear
    13·1 answer
  • Bellingham Inc had the following activity last year:
    15·1 answer
  • The ____ adds up the money earned by producers plus taxes paid to the government
    12·2 answers
  • Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether
    13·1 answer
  • Liquidity preference theory is most relevant to the:.
    7·1 answer
  • each phasae of the planning progrmming budgeting and execution following questions does programming phase answer
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!