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
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.

You might be interested in
The __________ phase of the strategic marketing process usually results in a __________ that sets the direction for the marketin
Paraphin [41]

Answer:

C. planning; marketing plan

Explanation:

A marketing process is the establishment of goals for a marketing campaign. <em>During the planning phase, you'll need to set your target customers and how to approach them, this will lead to specific and measurable goals to direct your next actions.</em>

I hope you find this information useful and interesting! Good luck!

7 0
3 years ago
Robin inherits 1,000 shares of Wal-Mart stock from her aunt in 2019. Accord-ing to the information received from the executor of
lana66690 [7]

Answer:

Explanation:

Adjusted Basis

Adjusted basis is balanced estimation of the first premise of a property, balanced for any capital increments or capital recuperation's.

Capital options can be in type of any expense acquired on capital upgrades or any improvement added to the property by citizen. Capital recuperation's have conspicuous sorts like deterioration and cost recuperation's and furthermore any losses and burglaries.

Ms R. acquired 1,000 loads of organization W from her auntie at a balanced premise of $55,000. Then again Mr. A life partner of Ms. R got an endowment of 1,000 supplies of organization W from his uncle having balanced premise of $7,000.

Inheritance Basis

At whatever point an individual being a citizen acquire any property, the premise of valuation of the property is honest assessment on the demise's passing. On the other hand, if the agent or manager of the bequest chooses balanced premise can be the honest assessment a half year after the date of death.

On account of Ms. R her auntie's agent accommodates a balanced premise of $55,000 which will be the honest evaluation of stocks and the equivalent will be the balanced reason for Ms. R

Gift Basis

In the event that an individual gets a blessing being property, the citizen will have a cost premise of zero which will blow up the increases when the property is sold by him. To abstain from clashing statutory standard that blessings are outside the domain of personal assessment, premise is given to beneficiary. This depends on date of blessing, premise of benefactor, blessing charge paid and honest assessment.

Endowments premise is figured in two structures, one if the removal of property brings about increase and other if removal brings about misfortune.

1. Gain: If deal brings about addition at that point balanced reason for donee will be lower of the balanced premise of the giver.

2. Loss: in the event that deal brings about misfortune, at that point balanced reason for donee will be lower of the balanced premise of the benefactor or honest evaluation on date of blessing

On account of Mr. A his uncle has a balanced premise of $7,000 which thusly will be the balanced reason for Mr. A too

Therefore, it very well may be presumed that the significant motivation behind why there is a considerable distinction between balanced premise of Ms. R and Mr. An is that, for Ms. R honest assessment is the balanced premise. Then again for Mr. A balanced premise of his uncle in his own balanced premise.

3 0
3 years ago
Use the DuPont system and the following data to find return on equity.(Do not round intermediate calculations. Round your answer
hjlf

Answer:Return on Equity= 37.1%

Explanation:

According to the DuPont Analysis System,  

Return on Equity = Leverage Ratio x Net profit margin x Total asset turnover

Return on Equity = 2.8 x 5.3% x 2.5

Return on Equity=0.371

Return on Equity= 37.1%

6 0
3 years ago
You have a team that has high cultural diversity and high interdependence, increasing the risk of disagreements in the team. Kno
Dominik [7]

Answer:

A. Conflict resolution abilities

Explanation:

Conflict resolution ability is the capacity of a person or group of persons to effectively handle and manage the conflicts of interest or disagreement between two or more persons or two or more groups.

There are several skills used by people who have conflict resolution abilities such as COMMUNICATION, COMPROMISE, COLLABORATION, ACCOMMODATION ETC.

4 0
2 years ago
Read 2 more answers
A not-for-profit hospital pays $150,000 interest on its bonds outstanding. The bonds were issued to finance construction of a ne
N76 [4]

Answer:

c. operating activities

Explanation:

Operating activities -

It is the activity of the functions of the business which is directly linked via providing the respective services and goods in the market , is known as operating activities .

It is the core business activity of the company , like the marketing , distributing , selling the services or goods and manufacturing .

It is responsible for the majority of the cash flow within the company .

Hence , from the question , the correct term according to the given data is c. operating activities .

4 0
3 years ago
Other questions:
  • True or False. Each organization or subcontractor responsible for a group or type of activities should always designate an inexp
    7·1 answer
  • Danielle has $127.02 in her account before making any transactions. Over the course of a week, Danielle makes the following tran
    5·2 answers
  • How many servings of coke are there per day
    11·1 answer
  • Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one depa
    10·1 answer
  • In 2014, Orear Manufacturing signed a contract with a supplier to purchase raw materials in 2015 for $700,000. Before the Decemb
    8·1 answer
  • On October 31, Year 1, A company general ledger shows a checking account balance of $8,445. The company’s cash receipts for the
    7·1 answer
  • Nan and Neal are twins. Nan invests $5,000 at 7 percent at age 25. Neal invests $5,000 at 7 percent at age 30. Both investments
    8·1 answer
  • Which one of the following is a formal document to manage and control project execution?
    11·1 answer
  • Discuss how a change in a product design could produce a change in the design of a planning and control system.
    7·1 answer
  • For the year ended December 31, Depot Max's cost of goods sold was $56,900. Inventory at the beginning of the year was $6,540. E
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!