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
Masteriza [31]
3 years ago
8

Which describes the tax consequences of ordinary dividends. A. Ordinary dividend distributions are not taxed to a distributing​

corporation, therefore shareholders will report dividend income on the amount received. B. Ordinary dividend distributions require the distributing corporation to recognize gain when distributing noncash property as a dividend. Shareholders report dividend income equal to the FMV of the property distributed when the distribution comes from earnings and profits. C. Ordinary dividend distributions require the distributing corporation to report gain or loss when property is​ distributed, therefore shareholders will not have to recognize gain or loss. D. None of the above.
Business
1 answer:
Aleks [24]3 years ago
8 0

<u>Answer:</u>

<em>(B) Ordinary dividend distributions require the distributing corporation to recognize gain when distributing the noncash property as a dividend. Shareholders report dividend income equal to the FMV of the property distributed when the distribution comes from earnings and profits. </em>

<em></em>

<u>Explanation :</u>

A qualified dividend is a profit that falls under capital increases expense rates that are lower than the annual duty rates on unfit, or joint, profits. Profit expense rates for common dividends. Regular profits are delegated either qualified or normal, each with various duty suggestions that effect a speculator's net return. The expense rate on qualified profits for speculators that have customary salary exhausted at 10% or 12% is 0%.

Ordinary dividends are taxed a person's typical annual duty rate, rather than the favored rate for qualified profits as recorded previously.

You might be interested in
Income elasticity of demand is
coldgirl [10]

Answer: Option (a) is correct.

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded with change in the income level of an individual.

Income\ elasticity\ of\ demand=\frac{percentage\ in\ quantity\ demanded}{percentage\ change\ in\ income}

Income of an individual has a positive relationship with the demand for normal goods and has a negative relationship with the demand for inferior goods.

3 0
3 years ago
Read 2 more answers
Rumba Dance Hall is considering offering a wedding reception package that includes the ballroom rental, decorations, a wedding c
ASHA 777 [7]

Answer:

B) Increases profits by $700.

Explanation:

We must perform an incremental analysis of the costs and revenues generated by the alternative course of action which is offering the package:

Current income:

ballroom rent                              $4,500

<u>extras                                             $800</u>

total current income =                $5,300

Alternative action income:

wedding package                        $6,000

opportunity cost ballroom rent    $4,500

<u>opportunity cost extras                   $800 </u>    

net income increase =                     $700

8 0
3 years ago
What is investing best for
Colt1911 [192]

Answer:

Investing is best for Stock Market, Investment Bonds, Mutual Funds, Savings Accounts, and Physical Commodities.

Explanation:

Stock Market has reference to the collection of markets and exchanges where regular activities that take place are buying, selling, and issuance of shares of publicly held companies. These financial activities are being coned by means of formal exchanges that are institutionalized or market places over-the-counter (OTC) operating under a set of defined regulations.  

Investment Bonds have reference to the life insurance policies wherein you are investing a lump sum in various available funds. There is a fixed term for some investment bonds, whereas others don’t have any set investment term. Upon encashment of your investments, the amount you get back is outright dependent on how better – or how worse – the investment has been done.  

Mutual funds refer to investments pooling your money altogether with other investors for the purchase of shares towards collecting stocks, bonds, or other securities, having reference to as a portfolio, that may have the probability of recreation on your own. A portfolio manager typically oversees Mutual funds. Variety of fees is linked with mutual funds. Some funds are available with transaction charges for purchases and sales or commissions known as loads.  

Savings Accounts imply deposit account that is interest-bearing held at a bank or other financial institution. Even if these accounts are paying a modest rate typically, their safety and reliability enable them to become a great choice for parking cash wanted by you that has availability for short-term needs. Savings accounts, though are having some limitations on the frequency of your funds withdrawal, generally they proffer flexibility quite exceptionally, ideal for the construction of emergency fund.  

Actual commodities undergoing delivery to the contracted buyer when a commodity contract is completed in the spot market or the futures market are known as Physical Commodities. Different from other financial assets, these commodities are having a physical component for hedging as well as valuation. Physical Commodities have broader classification into energy, metals, agricultural, and livestock with each that are characteristically unique. Even then, similar kinds of commodities are subject to the variability of degrees of quality.  

4 0
3 years ago
Knowledge check <br> what are the possible weaknesses of this peer approach to valuation?
kolbaska11 [484]

Answer:

The growth which is estimated is wrong.

Explanation:

The Prospective price to earning ratio P/E multiples are calculated using future earnings. In that way, they can be dramatically wrong. Relative valuation is quick and easy. It compares industry peer.

7 0
3 years ago
A company has determined that its optimal capital structure consists of 43 percent debt and the rest is equity. Given the follow
ale4655 [162]

Answer:

31.5%

Explanation:

Given from the question kd = 7.0 %

Tax rate = 35 %

P0 = $ 28.86

Growth g = 4.9 %

D1 = $ 0.94

First find the cost of common stock by

rS = D1/P0 + g

=0.94/$28.86 + 0.49

=0.523

= 52.3%

Finally, calculate the weighted average cost of capital WACC,

using rs= 0.523,

Tax rate =43% =0.43

Equity E 100% - 43% = 57% =0.57 and

kd=7.0 % = 0.07

so WACC = (D/A)(1 -­ Tax rate)kd+(E/A)rs

= 0.43(1 ­- 0.43)(0.07) + 0.57(0.523)

0.0172 + 0.298

= 0.315

= 31.5%

6 0
3 years ago
Other questions:
  • The drugstore chain CVS uses loyalty-card data to better understand what consumers purchase, the frequency of store visits, and
    6·1 answer
  • Assume there is an increase in Government spending of $10 and the aggregate MPC is 0.8. Of the $8 of income that is received in
    10·1 answer
  • Jesse is the marketing manager for a large Midwest-based producer of food products. He is in the process of developing the_____,
    9·1 answer
  • During which phase in the process must a firm allocate its factors of production?
    12·2 answers
  • Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm di
    13·1 answer
  • Ivanhoe Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,380 per month. One of the bar
    9·1 answer
  • Think about an organizational change that recently affected you. This could be a change at work in which jobs or procedures were
    13·1 answer
  • ABC Company is considering investing in new production equipment at a cost of $60,000 with a 10-year useful life and no salvage
    5·1 answer
  • Okay, Daily Question!
    13·1 answer
  • Which one of the following ratios is a measure of a firm's liquidity?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!