Answer:
B. $300,000
Explanation:
Macaw Corporation increased its E & P last year for the entire amount of the deferred gain on the installment sale. Since one-half of the $800,000 gain is included in taxable income in the current year, taxable income should be reduced by this amount to determine current E & P. Therefore, Macaw Corporation’s current year E & P is $600,000 ($1 million taxable income – $400,000 of installment sale gain). Because one-half of the current E & P is allocated to Tracy’s distribution, she has a $300,000 dividend
Answer:
C) can get started more easily and maneuver faster
Explanation:
A small business (sole proprietorship, partnership, limited liability company) can maneuver much faster than any corporation simply because the owners are the managers of the business. The owners do not have to ask anyone for permission to make any decisions or decide new business activities. Also, last but not least, you are your own boss, and that is priceless.
Small businesses are also much easier to set up and do not require a lot of paperwork and authorizations to start operating.
Answer:
Indirect taxes
Explanation:
Indirect taxes are the taxes levied on transactions as opposed to direct taxes that are imposed on incomes. An indirect tax is added to the prices of goods and services and collected by the seller or retailer. The retailer acts as the tax intermediary and submits the taxes collected to the government.
Examples of Indirect taxes include excise duty tax, value-added tax, and sales tax. Gas attracts sales tax and road maintenance tax. These taxes increase the price of gas, making them indirect taxes.
Answer:
Ans. The expected rate of return on the Inferior Goods Co. stock is 5.90%
Explanation:
Hi, you just have to multiply the expected earnings by the probability of occurance of a certain event and then add up all the products. Here is the information all organized to be processed.
Item Prob Earn
Booming 20% -6%
Normal 55% 7%
Recession 25% 13%
Ok, now let´s calculate the expected rate of return.
So the expected rate of return of the stock is 5.90%
Best of luck.
