Answer:
B) False: since it is still a closely held C corporation, it cannot reduce its ordinary income through passive losses. If it hadn't been a closely held C corporation then it could have made the deductions.
Explanation:
Passive losses are losses resulting from financial activities, i.e. investments in other corporations where the investor doesn't participate in.
Passive losses cannot offset ordinary income, they must be matched against passive gains only. If passive losses exceed passive gains, they can be carried forward without limitation.
The only exception applies to C corporations that are not;
- closely held corporations or
- personal service corporations.
Qualifying C corporations can actually deduct passive losses from certain ordinary income.
Closely held C Corporations are corporations where during the last 6 months, 50% or more of its stock is owned by 5 or fewer investors.
Answer:
Journal entry
Explanation:
Before passing the journal entry we need to do the following calculations
Uncollected amount is
= $4,400 × 50%
= $2,200
Uncollected amount is
= ($4,400 - $2,200) × 0.03
= $2,200 × 0.03
= $66
So, the total amount is
= $2,200 + $66
= $2,266
Now the journal entry is
Bad debt expense $2,266
To Allowance for uncollectible accounts $2,266
(Being the uncollectible account is recorded)
Answer and Explanation:
In the case when the budget balance of the Conania varies i.e. from positive to negative so the capital inflow would decrease
Now this impact private investment spending in such a way that the situation would become worst and this would lead a serious crowding effect that ultimately reduce the economy
Hence, the same is relevant
Answer:
What is the term used to describe product attributes that attract certain customers and can be used to form the competitive position of a firm?
Competitive dimensions.
Explanation:
In the business world, there are companies that sell products that are used for the same things. The companies in this types of environments are in competition with each other since they are all fighting over the same resource which is market share. A bigger market share usually translates to more customers and more sales. Bigger sales reflects to a bigger profit margin. For a company to have a bigger market share, there are a number of things that they can do to form the competitive position of their firm. They can do this by using product attributes that attract certain customers, a situation termed competitive dimensions.
The following competitive dimensions can be considered, namely;
1. Quality: companies can focus on the quality of their product by improving the quality of the features above the competition. In this way some customers might consider opting for that product because of its perceived quality. The major features of quality are: reliability, performance, serviceability and value for money.
2. Time: the following form the major components of time, namely; delivery time, manufacturing lead-time and frequency of delivery.
3. Price and cost: these include selling price and the service costs.
