Answer:
$50,000
Explanation:
The computation of the interest expense for deduction is shown below:
= Interest on a mortgage on his home + Interest on a mortgage on his vacation home
= $40,000 + $10,000
= $50,000
All other information which is given in the question is not relevant for the computation part. Hence, ignored it
We simply add both types of interest related to a mortgage on the home
Answer:
$99,750
Explanation:
Matulis's taxes are = (asset's fair market value - asset's basis) x corporate tax rate = ($800,000 - $325,000) x 21% = $475,000 x 21% = $99,750
Since the C corporation is turning into a S corporation it must recognize the gain on holding the asset. The Tax Cuts and Jobs Act set the corporate tax rate at 21%.
The answer is d because d
Answer: From the given comprehension if the following statement is true, will most seriously weakens the argument: <u><em>Among the entrepreneurs surveyed, those who did not produce formal business plans sought and received a much larger proportion of their capital from investors with whom they had a long-standing business relationship.</em></u>
<em>Here it states that, entrepreneurs who were capable of raising funds without thought/design were able to make the capital because of their relation with investors.</em>
<u><em>Therefore, the correct option here is (c).</em></u>
Answer: Option B
Explanation: Earnings per share is calculated by dividing net income available to common shareholders with the weighted average number of shares.
Deduction of preferred dividends from net income is done only when dividends are declared by the entity, otherwise not. Preference shareholders have priority over common shareholders in case of dividends, so it will result in reduction of earnings to common shareholders but only when the dividends are declared and distributed.
