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nasty-shy [4]
4 years ago
5

During the year, a corporation declares a dividend and subsequently distributes to a stockholder $15,000 in cash and a bond with

a basis of $25,000 and a fair market value of $26,000 on the date of distribution. The bond had a fair market value of $26,500 on the date that the corporation declared the dividend. The corporation has current earnings and profits in excess of the total amounts distributed during the year. What identifies the tax consequences of the distribution to the stockholder?
Business
1 answer:
Tresset [83]4 years ago
7 0

Answer:

The stockholder must report a total income of:

$15,000 (cash) + $26,000 (fair market value of the bond) = $41,000

Nonmonetary dividends have to be recognized at the fair market value of the assets that are distributed. Nonmonetary dividends are usually referred to as property dividends. Cash is recognized at its face value.

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Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams from the previous question. The initial marg
Molodets [167]

Answer:

a) 8,000

b) Yes

c) -60%

Explanation:

a) 8,000

b) Yes

c) -60%

) 8,000

a.the trader puts up=20000(1000*50%*40)

he lost $10000(1000*$10)

if he trader pays $2000 in dividend

the remaining margin=20000-10000-2000

$8000

b.) margin rate=equity /liability

8000/50000*100%=

16% , so we have a margin call

c.Equity decreases from 20000 to 8000 in 1 year

return= -12000/20000=-0.60

=-60%

4 0
4 years ago
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit. Minor currently produces a
Maslowich
The company should accept the special order because it will get an additional profit of $4,000 ($12,500 - $7,500 - $1,000) for the special order. This additional profit amount can be acquired by separating the effect from the special order on each cost and sales of the company's business. The sales should increase by $12,500 ($5 x 2500 unit) amount if the job is taken and the variable cost should increase by $7,500 ($3 x 2500 unit). Lastly, the fixed cost should increase by $1,000 (the new machine).
3 0
3 years ago
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Alla [95]

Explanation:

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6 0
3 years ago
In a transaction that involves the purchase of a business, what document functions in the same way as the deed in a personal rea
Dmitrij [34]

The document that functions as the same in a personal real estate transaction is the Contract for Sale.

<h3>What is Real Estate?</h3>

Real estate refers to the property which specifically includes the land property or it can be said the property attached to the land. The property can be natural or the man made. It is also termed as the real property.

Contract for sale refers of the agreement between the buyer and the seller in which the sale of the goods and services takes places. It includes several important aspects such as price consideration, interest ,guarantee etc.

The document that functions as the same in a personal real estate transaction which involves the purchase of the transactions  is the Contract for Sale.

Learn more about Contract for Sale here:

brainly.com/question/14058341

#SPJ1

6 0
2 years ago
An article in the Wall Street Journal contained the following observation: "Every month, millions of workers leave the job marke
Alik [6]

Answer:

The millions of workers leaving the job market for the reasons given are:

  • B) not counted as unemployed in the BLS data because they are no longer actively looking for work.

Even if they don't find a job right away, people entering the job market after graduating from high school or college will

  • A) be counted as part of the labor force by the BLS if they are actively looking for work.

Explanation:

The unemployment rate includes everyone that doesn't have a job but has actively looked for one during the last 4 weeks (generally a month because the unemployment rate is given on a monthly basis), and are currently available and willing to work.

7 0
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