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Elena L [17]
3 years ago
5

Plum Corporation will begin operations on January 1. Earnings for the next five years are projected to be relatively stable at a

bout $80,000 per year. The shareholders of Plum are in the 33% tax bracket. With the given scenarios, pick the best choice and explain why.
A. Assume that Plum will reinvest its after-tax earnings in the growth of the company, should Plum Corp operate as a C Corporation or an S Corporation?
B. Assume that Plum will distribute its after-tax earnings each year to its shareholders. Should Plum operate as a C corporation or an S Corporation?
Business
1 answer:
Paul [167]3 years ago
3 0

Answer:

Plum Corporation

The best choice is:

B. Assume that Plum will distribute its after-tax earnings each year to its shareholders. Should Plum operate as a C corporation or an S Corporation?

Explanation:

a) Tax is the greatest difference existing between a C corporation and an S corporation.  With a C corporation, the earnings are taxed twice.  When the C corporation earns income, it is taxed as a corporation.  When it distributes the after-tax earnings, the owners are taxed again in income tax.  This does not happen with an S corporation.  The S corporation does not pay corporate tax, instead, its owners pay their individual income taxes because the corporation's incomes are passed through the members.

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Gently laser clinic purchased laser equipment for $4,445 and paid $633 down, with the remainder to be paid later. the correct en
xxMikexx [17]

Answer:

Accounts Payable $3,812 credit

<h3>Explanation:</h3>

Equipment  $4,445 debit,

Cash $633 credit,

now, $4445- $633 = $3,812

The correct entry would be $3,812.

To learn more about it, refer

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5 0
2 years ago
The following are​ beta's for a Microsoft during four time periods. Compare the four estimated betas. What do you conclude about
zmey [24]

Answer:

Microsoft was doing good till 1990's because there was no competition at that time and they were the only operation system known, but when internet market was getting other competitors Microsoft's risk increased they couldn't compete with them.

Explanation:

Systematic beta reflects the risk which is present in the market and difficult to avoid.

  • Microsoft was doing great when and the reason they got on top was because there was no competitor so they weren't at risk.
  • <em>But</em> since the technological industry is enhancing Microsoft didn't adapt to change and continued with their old strategy which led them at this condition as there risk is increasing they are highly volatile to the market.
4 0
2 years ago
The United States has accused China of Multiple Choice contributing to the skyrocketing price of aluminum. reducing barriers in
marta [7]

Answer:

exacerbating the global glut of steel by investing in additional production.

Explanation:

The United States Government under President Trump accused China of promoting overcapacity in production of steel and aluminium (that is industrial overcapacity).

This over-production of steel has distorted the global market by facilitating excess exports.

However China has been taking steps to reduce excess steel production although such efforts have been inadequate.

Even less has been done about the overproduction in the aluminium industry

6 0
3 years ago
Larry Bar opened a frame shop and completed these transactions: 1. Larry started the shop by investing $40,000 cash and equipmen
Alla [95]

Answer:

($39,700)

Explanation:

Cash outflows:

($40,000) exchanged for common stock.

($1,200) used to pay salaries.

Cash inflows:

$1,500 received from a sale

So we have  a negative 41,200 representing cash outflows, and only $1,500 in cash inflows (we are not told if the $200 billed were already received so I will leave them out). Making a simple arithmetic operation, we obtain the answer:

Cash balance = -$41,200 + $1,500

                       = -$39,700

6 0
3 years ago
A publisher prints copies of a popular weekly tabloid for distribution and sale. The fixed costs are $500 per print run, with ea
Hatshy [7]

Answer:

500 + 0.40q

Explanation:

A publisher prints copies of a popular weekly tabloid for distribution and sale.

Given that,

Fixed costs = $500 per print run

Variable cost = $0.40

Therefore, the cost function is as follows:

Let the number of copies printed be q,

Cost function: C(q) = Fixed cost + Variable cost

                               = 500 + (0.40 × q)

                               = 500 + 0.40q

3 0
3 years ago
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