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IceJOKER [234]
2 years ago
11

Ted is an agent for Waxwing Corporation, an airliner manufacturer, and is negotiating a sale with a representative of the U.S. g

overnment and with a representative of a developing country. Waxwing has sufficient capacity to handle only one of the orders. Both orders will have the same contract price. Ted believes that if Waxwing will authorize a $500,000 payment to the representative of the foreign country, he can guarantee the sale. He is not sure that he can obtain the same result with the U.S. government. Identify the relevant tax issues for Waxwing. Discuss why they could or should influence Waxwing's decision.
Business
1 answer:
Goshia [24]2 years ago
4 0

Answer:

The Non-deductible amount of $500,000 paid to the representative of a developing country and the qualification for a 9% deduction will influence the decision of Waxwing and they will choose to do business with the US government  

Explanation:

The payment of $500,000 to the representative of a developing country in order to Guarantee sales to the country is illegal and will be considered as a bribe. and any money paid as a bribe or a kickback to an employee or representative of a country it is not deductible

secondly If waxwing goes into contract with the US government they will qualify for a 9% deduction under the Domestic production activities deduction

The Non-deductible amount of $500,000 paid to the representative of a developing country and the qualification for a 9% deduction will influence the decision of Waxwing and they will choose to do business with the US government  

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Ashton borrows $25,000 from Amanda, who lends the money without taking an interest in collateral for the loan. Amanda is relying
polet [3.4K]

Amanda is kind of an unsecured creditor.

<h3>What Is an Unsecured Creditor?</h3>

An unsecured creditor is an individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because it will have nothing to fall back on should the borrower default on the loan.

If a borrower fails to make a payment on a debt that is unsecured, the creditor cannot take any of the borrower's assets without winning a lawsuit first.

In other word, An unsecured creditor is a creditor other than a preferential creditor that does not have the benefit of any security interests in the assets of the debtor.

Therefore, we can conclude tat the correct option is A. Amanda is kind of an unsecured creditor.

Your question is incomplete, but most probably your full question was:

Ashton borrows $25,000 from Amanda, who lends the money without taking an interest in collateral for the loan. Amanda is relying on Ashton's credit standing when she made the loan. In this case, what kind of creditor is Amanda?

A) an unsecured creditor

B) a secured creditor

C) an administrative claim creditor

D) a post-petition creditor

Learn more about Unsecured Creditor on:

brainly.com/question/2872411

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3 0
1 year ago
Braxton's Cleaning Company stock is selling for $34.75 per share based on a required returmn of 10.4 percent. What is the the ne
mash [69]

Answer:  Po = D1/Ke + g

               $34.75 = D1/0.104 + 0.039

   $34.75 -0.039 = D1/0.104

                $34.711 = D1/0.104

                        D1  = 34.711 x 0.104

                        D1 = $3.61

Explanation: In this question. there is need to apply the formula for determining the current market price of a common stock. The current market price of a common stock is a function of next dividend capitalised at the appropriate cost of equity plus growth rate. in addition, we need to make the next dividend the subject of the formula.

5 0
2 years ago
Edith Carolina is president of the Deed Corporation. The company is decentralized, and leaves investment decisions up to the dis
Softa [21]

Answer:

Check the explanation

Explanation:

In this case option A is the correct option, i.e. Carolina will accept the new cosmetic line but Sanders will reject the new cosmetic line. This is because Carolina being the president of Deed Corporation would like to take the cosmetic line differently and with the expected rate of return of 12%, i.e. higher than the minimum required rate of return of 8%.

However, Sanders has achieved a 14% rate of return from his cosmetic division thus, being the manger he would not like his performance to go down with 12% return from the new cosmetic line. Thus, option A is the correct option.  

8 0
3 years ago
The quantity of coffee sold fell sharply last month, while the price remained the same. Five people suggest various explanations
ra1l [238]

Answer:

Sam: Supply decreased, but demand was perfectly elastic.

Explanation:

Sam is right because the only possible explanation is that the demand is perfectly elastic and the supply decreased. When the price elasticity of demand is perfectly elastic, the demand curve is completely horizontal. Since the price of coffee remained the same, that means that the quantity demanded will decrease only if the supply of coffee decreased.

7 0
3 years ago
A list of Year 3 revenues and expenses for Green Thumb, Inc. is provided below. Advertising and Promotion Expenses 262,700 Incom
iren2701 [21]

Answer:

A. Net Income = $304,560

B. Ending Retained Earnings = $420,740

Explanation:

Req. (A)

Green Thumb, Inc.

Income Statement

For the year ended, 31 December, 20Y3

Revenues:

Sales Revenues $1,866,300

Expenses:

Salaries and wages expenses $725,000

Advertising and Promotion Expenses 262,700

Income Tax Expense 56,520

Interest Expense 43,920

Other Expenses 122,600

Other Selling & Administrative Expenses 351,000

Total Expenses = ($1,561,740)

Net Income = $304,560

Note: We can use a multiple step income statement. However, as there is no instruction, we use single step income statement.

Req. (B)

Green Thumb, Inc.

Statement of Retained Earnings

For the year ended, 31 December, 20Y3

Balances, January 1 $162,200

Add:

Net income for the current year $304,560

Less: Dividends ($46,020)

Balances, December 31 $420,740

Note: Here, Balances, January 1 = Beginning Retained earnings Balance

Balances, 31 December = Ending retained earnings.

3 0
3 years ago
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