<span>Numerator (Basic EPS): Net income = $650,000; Preferred dividends =
$40,000 [(10% x $100) x 4,000]. Because
the preferred stock is cumulative, dividends are included whether or not paid</span>
Denominator (Basic EPS):
Weighted average # shares common stock outstanding
1/1 – 12/31 440,000 x (12/12) = 440,000
10/1 – 12/31 16,000 x (3/12) = 4,000
Weighted average # shares 444,000
Basic EPS = ($650,000 - $40,000) ÷ 444,000 = $1.37
Answer:
The options do not match the case, since Sandi proposed the corporation and Walter is having second thoughts about it due to corporate taxes.
Walter might be right or wrong depending on the type of corporation that they choose to form. If they choose to form a S corporation they will not be double taxed, since S corporations are pass through entities. But if they choose to form a C corporation, then they will be subject to double taxation since the C corporation will have to pay income taxes and Sandi and Walter will also be required to pay income taxes.
Both C and S corporations provide their stockholders limited liability, so neither Sandi or Walter will be personally liable for any obligation that the corporation may acquire or be imposed to (e.g. lawsuits).
False. They may look the same but they work differently. Credit cards are issued by banks and lenders. Debit cards uses money from your own bank account to pay for purchases. Credit cards pay for purchases using money from the lender's account.
Answer: perfect
Explanation:
A perfect competitive industry is characterised by:
1. Plenty buyers and sellers of identical goods.
2. Firms that are price takers. Market prices are set by market forces.
3. Free entry and exist of firms
4. Little need for advertising because goods are all identical.
Because wheat is identical with all other wheat, there's little need for advertising and no need for a pricing strategy, wheat is been sold in a perfectly competitive market.
I hope my answer helps you.
Answer:
Option C
Explanation:
It is given that the Hillary has received the check of $ 5,000 on the last week of the December.
Therefore,
Under constructive receipt she is taxed on income at the time the check is received or made available to Hillary i.e on the last year.
Thus, She will be taxed on $ 5000 for the last year
Hence, the correct answer is option (C)