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
leva [86]
3 years ago
12

Jonathan (an individual) owns 100% of the stock of Husky, Inc. (a C corporation) and 100% of the stock of Calhoun, Inc. (another

C Corporation). Calhoun, Inc. is very successful and has millions in earnings and profits. Husky has not fared so well and has no earnings and profits. In the current year, Husky ran out of cash and could not make its payroll. Because of this situation, Jonathan directed Calhoun, Inc. to pay $100,000 in wages to employees of Husky. The $100,000 payment was not structured as a loan.
A. How should Calhoun, Inc. treat the $100,000 payment for tax purposes?
B. How should Jonathan treat the $100,000 payment for tax purposes?
Business
1 answer:
BaLLatris [955]3 years ago
8 0

Answer: A. As Expenses

B. No treatment.

Explanation:

A. The $100,000 was not structured and a loan so it will be accounted for as EXPENSES. This means that it will be deducted from the Income for the year from Calhoun's books.

B. A C Corporation is by definition taxed SEPARATELY from it's owners in the United States of America. Seeing as both Corporations were C Corporations, Jonathan as the owner of both companies need not worry about how he should treat the $100,000 payment as he will not ne taxed on it.

You might be interested in
Export assistance centers work with small and medium-sized businesses who wish to get involved in:_______
OLga [1]

Export assistance centers work with small and medium-sized businesses that wish to get involved in direct exporting. Option A

This is further explained below.

<h3>What is direct exporting.?</h3>

Generally, Direct export refers to sales made directly to a foreign client. You send the buyer a straight invoice. For instance, let's say you produce bespoke mobile cases and send them to Belgian and German clients by mail.

In conclusion, Export help centers collaborate with companies of a medium or small size who are interested in engaging in direct exporting of their products. Alternative

Read more about direct exporting.

brainly.com/question/5896279

#SPJ1

3 0
2 years ago
A capital budgeting project has a net investment of $415,000 and is expected to generate net cash flows of $138,000 annually for
kirill [66]

Answer:

the net present value is $13,131

Explanation:

The computation of the net present value is shown below

As we know that

Net present value = Annual cash inflows × PVIFA factor for 4 years at 11% - Initial investment

= $138,000 × 3.1024 - $415,000

= $428,131 - $415,000

= $13,131

Hence, the net present value is $13,131

We simply applied the above formula so that the correct value could come

And, the same is to be considered

5 0
3 years ago
Primary data can usually be obtained more quickly and at a lower cost than secondary data.
Ad libitum [116K]
The answer is TRUE! :)
6 0
3 years ago
A company is considering purchasing a machine for $21,000. The machine will generate income from operations of $2,000; annual ne
Ksenya-84 [330]

Answer:

True

Explanation:

Data provided in the question:

Purchasing cost of the machine = $21,000

Income generated = $2,000

Annual net cash flows from the machine = $3,500

Now,

The Payback period = [ Purchasing cost ] ÷ [ Annual net cash flows ]

or

Payback period = $21,000 ÷  $3,500

or

Payback period = 6 years

Since,

the calculated payback period and the mentioned payback period in the question are equal

Hence,

the given statement is true

5 0
3 years ago
If a car company sold a vehicle for $50000 and was produced by 10000 what is the profit?
expeople1 [14]

Answer:

$ 40,000

Explanation:

profits are obatined by substracting toatl expenses from total revenues.

i.e profits= Total revenue - total costs

   

in this case: cost of production = $ 10,000.00

                    selling price           = $ 50,000.00

profits= $50,000-$ 10,000= $ 40,000

6 0
3 years ago
Other questions:
  • Which philosopher was a proponent of the phrase "honesty is the best policy"?
    8·1 answer
  • Johnny has 15 toys with a total value of $125. If some of Johnny's toys are worth $5 and the others are worth $10, how many toys
    7·1 answer
  • Problem page at a sale this week, a desk is being sold for $228.80 . this is a 74% discount from the original price. what is the
    6·1 answer
  • Quince products is a small company in southern california that makes jams and preserves. recently, a sales rep from one of the c
    7·1 answer
  • Danielle, a graduate in fashion technology, always found it tough to find clothes for her as she belonged to the category of plu
    6·1 answer
  • On December 31, 2018, Perry Corporation leased equipment to Admiral Company for a five-year period.
    7·1 answer
  • You just obtained a loan of $16,700 with monthly payments for four years at 6.35 percent interest, compounded monthly. What is t
    11·1 answer
  • At the beginning of 2018, Rex Co. showed a debit balance in the cash account of $20,500. Total debits to this account during the
    10·1 answer
  • Suppose there is a rash of pickpocketing. As a result, people want to keep less cash on hand, decreasing the demand for money. A
    11·2 answers
  • What does Mrs. Morningstar say that Sancho and Bolsa couldn't find in a porta-potty?
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!