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nirvana33 [79]
3 years ago
15

Money, Inc., a calendar year S corporation in Denton, Texas, has two unrelated shareholders, each owning 50% of the stock. Each

shareholder recorded a $400,000 stock basis as of January 1. At the beginning of the tax year, Money reports balances in AAA of $300,000 and AEP of $600,000. During the year, Money generates operating income of $100,000. At the end of the year, Money distributes securities worth $1,000,000, with an adjusted basis of $800,000.
a. At the end of the year, before the distribution, each shareholder's basis is $__________
b. After the distribution, each shareholder's basis is $______ .
c. Each shareholder has $____ of dividend income.
Business
1 answer:
ratelena [41]3 years ago
3 0

Answer:

See below

Explanation:

a. At the end of the year, before distribution, each shareholder's basis

= $400,000 + $100,000 + $50,000

= $550,000

b. After the distribution, each shareholder's basis is

= $300,000 + $200,000

= $500,000

c. Therefore, each shareholder has

$250,000 worth of dividend income.

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ANEK [815]

Answer:

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Which feature helps business address customer grievances
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A customer service representative would be a feature commonly used by huge companies in addressing the customers' issues with regards to their products and services. Furthermore, customer feedback is very important because the company would have the idea on how to improve their service or product.
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Ilia_Sergeevich [38]

Answer:

You must deposit $14,824.07

Explanation:

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Interest rate= 9.8%

Number of years= 9

First, we need to calculate the future value of your sister:

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Now, we can determine your deposit:

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ArbitrLikvidat [17]

Answer:

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