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MAVERICK [17]
3 years ago
5

Lincoln Corporation, a U.S. corporation, owns 50% of the stock of a controlled foreign corporation (CFC). At the beginning of th

e year, Lincoln's basis in its CFC stock was $100,000. The CFC's current-year income was $1 million, $600,000 of which was subpart F income. The CFC has no global intangible low-taxed income, paid no foreign income tax and distributed no dividends. How much current taxable income must Lincoln report as a result of its ownership of the CFC
Business
1 answer:
Natali [406]3 years ago
7 0

Answer:

$300,000

Explanation:

Calculation to determine How much current taxable income must Lincoln report as a result of its ownership of the CFC

Using this formula

Taxable income=Subpart F income * Ownership percentage

Let plug in the formula

Taxable income=$600,000*50%

Taxable income=$300,000

Therefore The amount of current taxable income that Lincoln must report as a result of its ownership of the CFC is $300,000

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The legal document that describes the rights and obligations of both the bondholders and the issuer is called the bond.
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A bond resolution is a legal document that specifies the rights of the issuer and the bondholder, the two parties to the bond contract, and allows the issuance and sale of bonds.

<h3>Who is a bondbondholder?</h3>

An investor or the owner of debt instruments, which are frequently issued by corporations and governments, is known as a bondholder. In essence, bondholders are lending money to the bond issuers. Bond holders receive their principal investment back when the bonds mature in exchange.

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6 0
1 year ago
A consumer equilibrium is a situation in which a consumer has allocated​ _____ of her income in a way that​ _____. A. ​all; maxi
ludmilkaskok [199]

Answer:

The correct answer is (D) all, maximizes her total utility.

Explanation:

Consumer's equilibrium is a defined as a situation in which an individual uses his or her money to buy goods in a manner in which the person obtains the highest satisfaction and has no need for a change in the level of consumption on account of the price of the product.

Consumer equilibrum enables an individual to obtain complete satisfaction from his or her money. Consumer equilibrum is found by comparing the ratio of the marginal utility to the price of a commodity.

3 0
3 years ago
Read 2 more answers
Suppose a monopolist's costs and revenues are as follows: ATC = $50.00; MC = $35.00; MR = $45.00; P = $55.00. The firm should
bekas [8.4K]

Answer:

The firm should increase output and reduce price

Explanation:

For a monopolist, there can be one of the following three scenarios at a time point in time:

Scenario one, MR = MC: For a monopolist, profit is maximized at the point where marginal revenue (MR) is equal to to marginal cost (MC), i.e. where MR = MC.

Scenario two, MR < MC: But when the MR < MC, it indicates that the monopolist is currently producing a higher quantity of output and it is not maximizing profit. In order to maximize profit, the monopolist has to reduce output until MR = MC.

Scenario three , MR > MC: But when the MR > MC, it indicates that the monopolist is currently producing a lower quantity of output and it is not maximizing profit. In order to maximize profit, the monopolist has to increase output until MR = MC. Also, the monopolist has to reduce price in order to sell the increased quantity of output.

From the question, the monopolist falls into scenerio three as MR > MC, i.e. $45 > $35. Therefore, the monopolist should increase output until MR = MC and reduce price in order to maximize profit.

3 0
3 years ago
A low-cost airline described as one of the excellent companies in the bestseller of the early 1980s, In Search of Excellence, is
yaroslaw [1]

Answer: Monopolistic competition

Explanation:

This is a market in which large numbers of producer sells differentiated products in terms of quality or branding. The ability to differentiate the products makes it possible for the different firms to practice price discrimenation which is further strengthen through advertising of the product, the price differences may force a firm out of the market if the demand for it's products falls significantly.

6 0
3 years ago
Tamara is 52 years old and her divorce became final on September 20, 2014 and has not been modified. The divorce decree stipulat
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Answer:

Please see attachment

Explanation:

Please see attachment

8 0
3 years ago
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