1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Burka [1]
3 years ago
14

At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $100,000. Blue's curr

ent E & P is $60,000, and at the end of the year, it distributes $200,000 ($100,000 each) to its equal shareholders, Pam and Jon. Pam's stock basis is $11,000, Jon's stock basis is $26,000. How is the distribution treated for tax purposes?
Business
1 answer:
Scrat [10]3 years ago
3 0

Answer:

Pam and Jon's dividend income = $80,000 each

[ ($100000 <em>Accumulated E&P </em>+ <em>$60000 current E&P </em>) / 2] = $80,000

Statement of distribution for shareholders for tax purpose

                                            Pam           Jon

Total distribution            $100,000    $100,000

Less: Dividend income   <u>$80,000     $80,000</u>

                                        $20,000    $20,000

Less: Stock basis            <u>$11,000       $26,000</u>

Capital gain                     <u>$9,000           $0 </u>

<u> </u>

Therefore, Pam has a taxable gain of $9000 which reduces the stock basis to $0, whereas Jon has not any taxable gain but the stock basis has reduced to $6000 [$26000 - $20000]

You might be interested in
If the government lowers tax rates and tax revenue falls by $100 million, we can expect consumption spending to ________ and equ
maksim [4K]

Answer: increase; increase by more than $100 million

Explanation:

If the government lowers tax rates and tax revenue falls by $100 million, we can expect consumption spending to increase and equilibrium output to increase by more than $100 million.

It should be noted that when there's reduction in tax rate, this implies that there'll be more money available to the households and the firms and this will then lead to more money which can be spent on goods or services. Also, due to this, the equilibrium output will increase as well by more than $100 million.

7 0
3 years ago
If someone introduces himself using a formal introduction, you should _____.
stich3 [128]

Answer:

Follow his lead and address him formally

Explanation:

If someone addresses you formally, that is because that person expects the conversation to be formal, or because you both are in a formal enviroment, for example, a work meeting. For this reason, the best to do in such situation is to address the other person formally as well.

6 0
3 years ago
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the c
gladu [14]

Answer:

<u>Overhead Report for heavy-duty trailer axles.</u>

Order size ($ 16.85 × 200)              $3,370.00

Customer orders ($ 320.00 × 1)        $320.00

Product testing ($ 89.00 × 4)            $356.00

Selling ( $ 1,090.00 × 2)                  $2,180.00

Total                                                 $6,226.00

Conclusion :

The total overhead cost assigned to the order is $6,226.00

Explanation:

ABC system allocates overheads to jobs using cost drivers.

First an Activity Center where costs accumulate is identified these can be several in our scenario we have four Activity Centers.

Then the Cost driver rate is calculated for each Activity Center. Our question has provided these.

The final step is to allocate the overheads to a particular job using the cost driver rate.

7 0
4 years ago
What is the benefits of international bussiness to firms ?​
muminat

Answer:

Benefits to Firms

It helps in improving profits of the organizations by selling products in the nations where costs are high. It helps the organization in utilizing their surplus resources and increasing profitability of their activities. Also, it helps firms in enhancing their development prospects.

Explanation:

i just looked it up so hope it helps ;)

4 0
3 years ago
Which of the following statements about federal student loans is TRUE?
Shtirlitz [24]

A.the interest rate on your loan will be fixed over time


4 0
3 years ago
Other questions:
  • John is an athlete. He has $120 to spend and wants to buy either a heart rate monitor or new running shoes. Both the heart rate
    15·1 answer
  • Jasmine goes out of her way to display a caring attitude to one of her customers during a sales call. the customer establishes a
    9·2 answers
  • An oligopoly market structure is distinguished by several characteristics, one of which is mutual interdependence. What are some
    11·1 answer
  • Gabriel, the CEO of a large global production company, is excited about the introduction of statistics and computer simulations
    6·1 answer
  • Myriam is analyzing the gender roles of men and women in management in the United States and comparing them to the gender roles
    7·1 answer
  • An agreement between the owner of a brand and another company or individual who pays a royalty for the use of the brand in assoc
    13·1 answer
  • The BEST explanation of why there will always be scarcity is because
    5·2 answers
  • At​ year-end, Stick Company has cash of $ 15 comma 000​, current accounts receivable of $ 30 comma 000​, merchandise inventory o
    12·1 answer
  • A skilled nursing facility chain is considering building a new facility on a piece of property that it currently owns. The prope
    8·1 answer
  • Sales of blank______ began to increase in the early 1970s as many cigarette smokers apparently began to look for alternatives th
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!