Answer:
S corporation
Explanation:
In the given case, The eagle basis at the closing of the year is 70,000 i.e. $40,000 + $30,000 (50% of $60,000)
In the case when the entity was a general partnership so 50% of $10,000 i.e. $5,000 would be added to the basis of Eagle
So here the type of entity that was formed is S corporation
The same is relevant
Answer:
a) I will pick the shares and sell them ,as this will yield a better return 6,338 to 5,000
b) I will consider:
- the expectation on the stock price
- and the rate of return in the market
- at current price, it will yield 26.76%
Explanation:
100 shares x 63.38 = 6,338 cash bonus for shares
If the stocks should be retained for at least a year.
there are two components that will need consideration:
the expectation on the stock price
and the rate of return in the market
if we assume the stock will keep the same value then it will yield:
6,338 / 5,000 - 1 = 0.2676 = 26.76%
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Answer: This is a violation of position limits
Explanation:
When checking to see if there has been a violation of control limits, all the accounts managed by a single entity or all accounts under <em>common control</em> will be added up instead of being evaluated on an individual basis.
John manages 25 accounts out of which he bought calls for 10. He bought 30,000 for each of the 10 which would mean that he bought 300,000 call contracts.
This exceeds the 250,000 contract limit so is a violation of position limits.
Answer:
116.67%
Explanation:
Note: <em>Complete question is attached as picture below</em>
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Capital Turnover = Sales / Total Assets
Capital Turnover = $7,000,000 / $1,500,000
Capital Turnover = 4.67
Sales Margin = Operating Income / Sales
Sales Margin = $1,750,000/$7,000,000
Sales Margin = 0.25
Sales Margin = 25%
Division Rate of Investment = Capital Turnover * Sales Margin
Division Rate of Investment = 4.67 * 25%
Division Rate of Investment = 116.67%
