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Masteriza [31]
2 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]2 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.

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The reason why business fail is because they find it extremely hard to compete with the well known business. for example a man that opens up a buisiness that sells soap and decides to name the soap and company labbi but everyone goes to dove because it's more well known and been out for years and delivers high quality 
3 0
3 years ago
Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserv
dlinn [17]

Answer:

Change in Excess Reserves $1,350,000

Change in Required Reserves $450,000

Explanation:

Preparation of the table to show the effect of a new deposit on excess and required reserves

Based on the information given since the REQUIRED RESERVE RATIO is 25%, which means that First Main Street Bank will hold 25% of its initial deposit leading to INCREASE in the REQUIRED RESERVE by the amount of $450,000 (25%*$1,800,000) while the remaining 75% (100%-25%) will be the EXCESS RESERVES of the amount of $1,350,000 (75%*$1,800,000).

Hence:

Amount Deposited: $1,800,000

Change in Excess Reserves=$1,350,000

Change in Required Reserves= $450,000

Therefore the effect of a new deposit on excess and required reserves will be:

Change in Excess Reserves $1,350,000

Change in Required Reserves $450,000

4 0
3 years ago
When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when A. a customer’s accou
MaRussiya [10]

Answer:

Option D. management estimates the amount of uncollectibles

Explanation:

When the company estimates the bad debts, reflects it in the balance sheet through a Debit entry in the Bad Debt Expenses againts the asset account Allowance for Doubtful Accounts as a Credit.

When the bad debt are confirm as uncollectible the loss is reflected in the Account Receivable as a Credit with the correspondent debit entry in the Allowance for Doubtful Accounts.    

7 0
3 years ago
The existence of a ________ means that the interest rate on a two-year bond will exceed the average interest rate on two success
krok68 [10]
The answer is risk-premium
7 0
2 years ago
Suppose that in your first year of college you spend $31,300.00 more than you eam. In your second year, your expenses increase a
ryzh [129]

Answer: See explanation

Explanation:

Based on the information provided in the question, the deficit in the 3rd year of college will be: = $32,150

The total debt that one owes in the 3rf year will then be the addition of the debts from the 1st to the 3rd year and this will be:

= $31,300 + $31,900 + $32,150

= $63,232

5 0
2 years ago
Read 2 more answers
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