Answer:
Statement 1 is the correct answer.
Explanation:
A corporate entity that is registered and conducts business in a different province or country than the residency of the controlling owners is known as a controlled foreign corporation (CFC).
In the U.S., the control of a foreign company is defined according to the percentage of shares owned by U.S. citizens.
Since the U.S. shareholders (the U.S. corporation and U.S. individual in this scenario) own more than 50 percent of the corporation's stock, then Boomerang is a CFC. The U.S. corporation and U.S. individual will have a deemed dividend equal to their pro-rata share of the corporation's subpart F income.
Therefore, statement 1 is the correct answer.
Answer:
It's a consumer surplus of $28.
Explanation:
Consumer surplus is the difference between the price costumers pay in the market and the price they place on the product.
In other words, the difference between a market price product and the price you think it is.
Answer:
A. Price-earnings ratio= 12.34
B. Yield on the stock = 2.36%
Explanation:
A. Calculation for the price-earnings ratio using this formula
Price-earnings ratio=Market Price Per Share / Earnings Per share
Let plug in the formula
Price-earnings ratio=59.25 / 4.80
Price-earnings ratio= 12.34
B. Calculation for the yield on the stock using this formula
Yield on the stock=Annual dividends per share / market price per share
Let plug in the formula
Yield on the stock=1.40 / 59.25
Yield on the stock = 2.36%
Therefore the Price-earnings ratio is 12.34 while the Yield on the stock is 2.36%
Answer:
$2,400 Unfavourable
Explanation:
Direct material quantity variance = (Standard quantity - Actual quantity) × Standard cost
Given that:
Standard quantity = 3,700 pounds
Actual quantity = 4,900 pounds
Standard cost = $2
Therefore,
Direct materials quantity variance
= (3,700 - 4,900) × 2
= - $2,400
= $2,400 Unfavourable
The difference between the standard and actual quantity is negative. We used more pounds than expected, hence variance will be unfavourable.
Answer:
$73,500
Explanation:
The computation of the absorption costing net operating income last year is shown below:
= Variable costing net operating income - inventory units × Fixed manufacturing overhead cost per unit
= $81,900 - 2,800 units × $3
= $81,900 - $8,400
= $73,500
We simply deduct the fixed manufacturing overhead cost from the variable costing net operating income to find out the absorption costing net operating income