Answer: Windmill is not a CFC and none of the shareholders will have a deemed dividend under subpart F.
Explanation:
Subpart F income include insurance income, illegal bribes, foreign base company income, international boycott factor income, etc.
It should be noted that Windmill isn't a controlled foreign corporation that is the company isn't a corporate entity which is duly registered and then conducts business in another country that's different from its home country. Therefore, none of the shareholders will have a deemed dividend under subpart F.
Writing off an uncollectible account affects only balance sheet accounts under the allowance method.
Answer: $21 per direct labor hour.
Explanation:
Based on the information given in the question, the predetermined overhead rate that is used will be calculated as:
= Manufacturing overhead / Direct labor
where,
Manufacturing overhead = 5460
Direct labor = 3900/15 = 260 hours
Therefore, predetermined overhead rate:
= 5460/260
= $21 per direct labor hour.
Answer:
$1,194.05
Explanation:
The applicable formula is A = P x ( 1+ r) ^ n
Where A is the future amount
P is principal amount $1000
r is 6% per year or 0.06
n= time in years; 3 years
Since interest is compounded semi-annually, r will be 0.06 /2 = 0.03
n will be 3 years /2 = 6 periods
A = $1000 x ( 1 + 0.03) ^ 6
A = $1000 x 1.194052
A=$1,194.05
