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3 years ago

Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations.

Business

1 answer:

Lena [83]3 years ago

8 0

Answer:

1. $27,188

2. $48,000

3. 212,000

Explanation:

Computation for the charitable contribution deduction

1. Based on the information given the calculation will be :The amount of the property's basis including 50% of the appreciation on the property

Charitable contribution deduction = [$43,500 + ($54,375- $43,500) * 50%]

Charitable contribution deduction = [$43,500 + ($54,375- $43,500) * 50%

Charitable contribution deduction =$43,500+$10,875*50%

Charitable contribution deduction =$27,188

b.Based on the information given what will be the

charitable contribution deduction is the fair market value on the date of the contribution of the amount of $48,000 reason been that it is a capital gain property Contribution.

c. Based on the information given what will be the charitable contribution deduction is the worth of the donated sculpture held as an investment of the amount of $212,000 reason been that it is a capital gain property Contribution.

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4 years ago

Tax rates in which the percentage of tax is the same regardless of the level of income is MOST LIKELY a

saul85 [17]

Answer:

Proportional tax system

Explanation:

A proportional tax system levies an equal tax rate on everyone regardless of their income level. It is also known as the flat-rate tax because it treats the wealthy, middle class, and low-income earners equally. The proportional tax system simplifies tax filing as the same tax rate will apply to everyone.

The proportions tax system contrasts with the progressive tax system, which bases the tax rate on the taxpayer's income.

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3 years ago

According to Graham and Harvey's 2001 survey (Figure 8.2 in the text), the most popular decision rules for capital budgeting use

Elza [17]

Answer:

A) IRR, NPV, Payback period

Explanation:

According to Graham and Harvey's 2001 survey, for capital budgeting decision making, the following capital techniques are used which are described below:

Internal rate of return: It is that rate of return in which the net present value is zero that means initial investment and the present value of the annual cash inflows are equal

Net present value: In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.

The computation of the Net present value is shown below

= Present value of all yearly cash inflows after applying discount factor - initial investment

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

Payback period: It refers to the period in which the initial investment amount should be recovered. It is denoted in years

The formula to compute the payback period is shown below:

= Initial investment ÷ Net cash flow

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3 years ago

oss Music Inc. reported the following selected information at March 31. 2022 Total current assets $262,787 Total assets 439,832

Alexxandr [17]

Answer:

Please see below

Explanation:

a. Current ratio

= Total current assets / Total current liabilities

= $262,787 / $293,625

= 0.89

b. Debt to assets ratio

= Total current liabilities / Total assets

= $293,625 / $439,832

= 0.67

c. Free cash flow

= Net cash provided by operating activities - Dividends - Capital expenditure

= $62,300 - $12,000 - $24,787

= $15,685

5 0

3 years ago

Holly farms has sales of $509,600, costs of $448,150, depreciation expense of $36,100, and interest paid of $12,400. the tax rat

agasfer [191]

Sales = 509,600

Costs = 448,150

Gross profit = Sales - Costs

Gross profit = 509600-448150 = 61,450

Depreciation expense = 36,100

EBIT = Gross profit - Depreciation

EBIT = 61,450 - 36,100 = 25,350

Interest = 12,400

EBT = EBIT - Interest expense = 25,350 -12,400 = 12,950

Net income = EBT*(1-tax rate)

Net Income = 12,950*(1-0.28) = 9,324

Net Income = $9,324

3 0

3 years ago