Answer:
$150,000
Explanation:
Ending inventory, the value of goods available for sale at the end of the accounting period, plays an important role in reporting the financial status of a company and can best be figured out using the equation,
Ending Inventory = Beginning Inventory + Net Purchases - Cost of Goods Sold (or COGS)
Beginning Inventory = $160,000 in retail
Net purchases = $500,000 in retail +$10,000 Markups
Cost of goods sold = $500,000
So, End Inventory = 160,000+500,000+10,000-500,000
End Inventory = $150,000
Answer:
The long term capital gain= $30000-$25000
The long term capital gain= $5000
The basis in stock will be zero after the distribution.
Explanation:
Step 1 of 3
Tax treatment of amount distributed to shareholders:
The amount received as distribution to a shareholder under S Corporation is equal to the cash and fair market value of property distributed. The distribution is considered as tax-free to the limit that it does not exceed shareholder’s basis in the company’s stock. Any amount received in excess of basis will be treated as capital gain.
Step 2 of 3
However, taxation depends whether S Corporation has ever been a C Company or it posses’ accumulated earnings and profits. If it was never a C Corporation or doesn’t holds AEP then distribution equals to basis of share in S Corporation is a tax free gain for shareholder. Gain over and above basis is taxed as capital gains.
Step 3 of 3
In the given problem, C is a shareholder in S Corporation. He receives $30,000 as cash distribution. His basis in stock is $25,000. The distribution up to basis of stock is tax free distribution and above that is charged to capital gains. It is as follows-
Thus, capital gain of is taxable in hands of C. His basis in S Corporation will reduced to zero as entire distribution is over and above basis of his stock.
Answer:
If the interest rate is higher, to earn the same amount, she will need to invest a lesser amount of money.
Explanation:
Giving the following information:
Jessica invested $2,000 today in an investment that pays 6.5 percent annual interest.
The correct answer is:
She could have the same future value and invest less than $2,000 initially if she could earn more than 6.5 percent interest.
If the interest rate is higher, to earn the same amount, she will need to invest a lesser amount of money.
Answer: B. $1,050 more than expected.
Explanation:
The company originally planned to have revenue resulting from 30 customers and charging $30 for an estimated 33 hours.
Estimated revenue was;
= 30 * 30 * 3
= $2,700
However, in actuality, they sold to 20 more customers than estimated but only spent 2.5 hours each.
Number of customers = 30 + 20
= 50 customers
Actual revenue
= 50 * 30 * 2.5
= $3,750
Difference is;
= 3,750 - 2,700
= $1,050 more
