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Anna [14]
3 years ago
9

Hoosier Corporation declared a 2-for-1 stock split to all shareholders of record on March 25 of this year. Hoosier reported curr

ent E&P of $600,000 and accumulated E&P of $3,000,000. The total fair market value of the stock distributed was $1,500,000. Barbara Bloomington owned 1,000 shares of Hoosier stock with a tax basis of $100 per share.a) What amount of taxable dividend income, if any, does Barbara recognize this year? Assume the fair market value of the stock was $150 per share on March 25 of this year.b) What is Barbara's income tax basis in the new and existing stock she owns in Hoosier Corporation, assuming the distribution is tax-free?c) How does the stock dividend affect Hoosier's accumulated E&P at the beginning of next year?
Business
1 answer:
pychu [463]3 years ago
6 0

Answer:

(a) The stock dividend is not taxable because it affects all shareholders pro rata

(b) Babara will transfer half of the old stock base to the new stock and make her new and old stock tax base $50

(c) Hoosier does not change his E&P for the stock dividend since the shareholders are not taxable.

Explanation:

You might be interested in
Draco Company charges a selling price of $25 per unit for its single product, incurs variable costs of $17 per unit, and total f
larisa86 [58]

Answer:

c. 23,500

Explanation:

The formula for determining target sales volume is shown below:

target sales volume=fixed costs+ target net income before tax/contribution margin per unit

fixed costs=$140,000

target net income before tax=$36,000/(1-25%)=$48000

contribution margin per unit=selling price-variable cost=$25-$17=$8

target sales volume=($140,000+$48000 )/$8

target sales volume=$188,000/$8

target sales volume=23500

7 0
3 years ago
How to check walgreens employee schedule?
FinnZ [79.3K]
If you were not aware, not every walgreens store has its own website... so there is no way to check online enless your boss or specific store has set something up. The internet cannot help you on this one.
7 0
3 years ago
As part of a major plant renovation project, the industrial engineering department has been asked to balance a revised assembly
ioda

Answer:

A)Minimum = 0.2 minutes

Maximum = 4.6 minutes

Cycle time = = 2 minutes per unit

B) Number of Stations = 3

D) the percentage of idle time for the assignment in decimal = 0.43

Explanation:

A) Operating output = 240 units per 8hours.

Converting to per hour, we get; 240/8 = 30 units per hour.

Minimum cycle time = longest task time

Maximum cycle time = sum of task times

Minimum = 0.2 minutes

Maximum = 0.2 + 0.4 + 0.2 + 0.4 + 1.2 + 1.2 + 1.0 = 4.6 minutes

Now, operational time(OT) is 8 hours a day. Converting that to minutes, we have =60x8 = 480 minutes

Cycle time(CT) = OT (per day) /desired output

Therefore, calculated cycle time = 480/240

= 2 minutes per unit

B) Number of stations = Maximum time / CT

= 4.6/2 = 2.3 which is approximately 3 stations

C) The task diagram is drawn in image 1 attached. Therefore, we can assign tasks based in the greatest number of following tasks as follows;

Task Number of following tasks

a 4

b 3

c 2

d 2

e 1

f 1

g 0

D) for the idle time from the assigned tasks in "c" above, from the "image 2" attached; the percentage of the idle time will be=

Total remaining time of tasks without remaining feasibility tasks/ {(number of these tasks) x(CT)}

Which gives percentage of idle time = (0.8 + 0.8 + 0.8 + 1.0)/{(4)x(2)}

= 3.4/8 = 42.5%

Since we are to convert to decimal,

= 0.425 approximately 0.43

4 0
3 years ago
Gabriel Farms, one of The Fruit Guys' vendors, believes in paying its employees a "living wage," which is higher than a typical
lions [1.4K]

Answer:

Physiological needs

Explanation:

Abraham Maslow developed the need hierarchy theory of motivation.  As per him, the urge to fulfill a need by an individual serves as primary factor of motivation.

Maslow specified the following needs in their order of hierarchy i.e from lowest to highest:

  1. Basic Physiological needs: These correspond to an individuals basic needs such as food, shelter , clothing etc.
  2. Safety Needs: Refers to security needs both physically and financially.
  3. Social Needs: Refers to the need for love, affection and friendly ties.
  4. Self Esteem Needs: Refer to an individual's self respect and self confidence.
  5. Self Actualization Needs: Refers to the need of utilizing one's full potential and capability.  

In the given case, the vendor pays it's employees a higher wage than the minimum wages. These wages would help employees satisfy their basic physiological needs as conveyed by the term, "living wage".

5 0
3 years ago
Milden Company is a merchandiser that plans to sell 43,000 units during the next quarter at a selling price of $60 per unit. The
netineya [11]

Answer:

1. Contribution format income statement for the next quarter.

Sales (43,000 units ×  $60 )                                           $2,580,000

<em>Less Variable Costs</em>

Cost of Goods Sold ( 43,000 units ×  $31 )                   ($1,333,000)

Sales commissions (6% × 43,000 units ×  $60)               ($154,800)

Shipping expense ( $4.00 × 43,000 units)                      ($172,000)

Contribution                                                                       $920,000

<em>Less Fixed Costs </em>

Advertising expense                               $187,000

Shipping expense                                    $45,000

Administrative salaries                             $97,000

Insurance expense                                    $10,700

Depreciation expense                              $67,000        ($406,700)

Net Income/ (Loss)                                                            $513,300

2. Traditional format income statement for the next quarter.

Sales (43,000 units ×  $60 )                                           $2,580,000

<em>Less  </em>Cost of Goods Sold ( 43,000 units ×  $31 )         ($1,333,000)

Gross Profit                                                                      $1,247,000

<em>Less Expenses </em>

Advertising expense                               $187,000

Shipping Expense :

   Variable Shipping expense                $172,000

   Fixed Shipping expense                      $45,000

Administrative salaries                             $97,000

Insurance expense                                    $10,700

Sales commissions                                  $154,800

Depreciation expense                              $67,000        ($733,500)

Net Profit / (Loss)                                                              $513,500

Explanation:

The contribution format income statement shows the Contribution instead of Gross Profit. Contribution is calculated as Sales less all Variable Costs.

The traditional format income statement shows the Gross Profit instead of Contribution. Gross Profit is calculated as Sales less Cost of Goods Sold.

5 0
3 years ago
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