Answer:
Explanation:
Pam and Jon's dividend income of $134,500 each [($185,000 Accumulated E&P + $111,000 current E&P) / 2],
Statement of distribution for shareholders for tax purpose :-
Pam Jon
Total distribution $185,000 $185,000
less: Dividend income $134,500 $134,500
<em> $50,500 $50,500</em>
less : Stock basis $25,900 $103,600
Capital gain $24,600 $0
Pam has a taxable gain of $24,600 which reduces the stock basis to $0, whereas Jon has not any taxable gain but the stock basis has reduced to $53,100 [$103,600- $50,500]
Answer:
Closing value of inventory = $357 for 21 units
Explanation:
As for the provided information we have,
Under FIFO method we know,
FIFO means First In First Out, under this the goods bought at earliest are sold earliest.
That means first opening inventory is sold, then the inventory purchased at the earliest.
Now we have,
Opening Inventory = 27 units @ $17 = $459
Purchases:
Aug 5 22 units @ $16 = $352
Aug 12 26 units @ $17 = $442
Provided 54 units are sold on Aug 15, that means, opening inventory of 27 units, 22 units bought on Aug 5, and 54 - 27 - 22 = 5 units from purchases on Aug 12.
Therefore, after sale units left = 26 - 5 = 21 units
Thus, closing value of inventory = $357 for 21 units
