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Sedbober [7]
3 years ago
9

On April 30, Janet, age 42, received a distribution from her qualified plan of $150,000. She had an adjusted basis in the plan o

f $500,000 and the fair market value of the account as of April 30 was $625,000. Calculate the taxable amount of the distribution and any applicable penalty.
Business
1 answer:
Ahat [919]3 years ago
6 0

Answer:

The taxable amount of the distribution is $120000  and The applicable penalty is $3,000.

Explanation:

The distribution to Janet does not qualify for the exception to the 10% penalty.

Distribution return of adjusted Tax Basis

= (Adjusted Basis/FMV)*Gross Distribution

= (500000/625000)*150000

= $120000

amount subject to income tax  = $150,000 - $120,000

                                                  = $30,000

Appicable tax penalty = $30,000*10%

                                     = $3,000

Therefore, The taxable amount of the distribution is $120000  and The applicable penalty is $3,000.

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The following information is available for Sheridan Company
Arte-miy333 [17]

Answer:

See below

Explanation:

Balance sheet as of December 31, 2022.

Current assets

Account receivable $2,000

Cash $6,280

Supplies $3,790

Total $12,070

Fixed assets

Equipment net $110,300

Inventory $2,810

Total $113,110

Total assets = $12,070 + $113,110 = $125,180

Current liabilities

Accounts payable $3,900

Interest payable $500

Salaries and wages payable $740

Notes payable $32,500

Total $37,640

Financed by;

Common Stock $52,500

Total liabilities + Common stock

= $37,640 + $52,500

= $90,140

6 0
3 years ago
Mike is walking through a parking lot and finds Kathy lying unconscious. He puts her in his car and takes her to the hospital. T
slava [35]

Answer:

The answer to this question is c. Kathy has to pay based on a quasi contract.

Explanation:

Based on the scenario displayed above Kathy has to pay based on a quasi contract.

A  Quasi contract is a contract  that is created by a court order, not by an agreement made by the parties to the contract. For example, quasi contracts are created by the court when no official agreement exists between the parties, in disputes over payments for goods or services

In this case there has not been an official agreement between Kathy and the hospital, However she has to pay the bill presented to her based on Quasi contract which is created to prevent an individual to be unjustly enriched or from benefiting from the situation when he/she  does not deserve to do so.

Hence the answer is c. Kathy has to pay based on a quasi contract.

5 0
3 years ago
Crane Company sells 50000 units for $10 a unit. Fixed costs are $350000 and net income is $100000. What should be reported as va
koban [17]

Answer:

Variable expenses = $50,000

Explanation:

Given:

Sales price = 50,000 x $10 = $500,000

Fixed costs = $350,000

Net income = $100,000

Find:

Variable expenses

Computation:

Variable expenses = Sales price - Fixed costs - Net income

Variable expenses = $500,000 - $350,000 - $100,000

Variable expenses = $50,000

5 0
3 years ago
On February 2, Flint Corp.'s board of directors voted to discontinue operations of its frozen food division and to sell the divi
ikadub [295]

Answer: $40,000

Explanation:

The gain from discounted operations assuming no income taxes, is the gain from the sale of the asset less the net operating losses in the period.

= Gain from Sales of Asset - Net losses in period

= 90,000 - ( 20,000 + 30,000)

= $40,000

8 0
3 years ago
Most plants want to have their supplies delivered just before they are needed to be used in production
vovangra [49]

Answer:

  True

Explanation:

The modern notion of "just in time" material delivery supports reduction of inventory and its associated costs. Plants that have sufficiently steady raw material usage will prefer supplies delivered "just in time."

Plants that have wildly varying production schedules or product mix may prefer a generous "safety stock." They may also prefer a generous supply inventory if their supply chain is unreliable.

It is true that most plants <em>want</em> to have supplies delivered just in time, but circumstances may make needs differ from wants.

4 0
3 years ago
Read 2 more answers
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