Erin spent $25, $36, $18, and $42 on lunch in the last four

Montclair Corporation had current and accumulated E&P of $500,000 at December 31, 20X3. On December 31, the company made a d

siniylev [52]

Answer:

The tax consequences of the distribution to Montclair in 20X3 would be a $150,000 gain recognized and a reduction in E&P of $175,000.

Explanation:

The distribution company distinguishes profit on the distribution, which is included in E&P netting of tax and decreases E&P by rhe lands fair market value fewer the liability believed by the shareholders.

Therefore, The tax consequences of the distribution to Montclair in 20X3 would be a $150,000 gain recognized and a reduction in E&P of $175,000.

3 0

3 years ago

You are planning to save for retirement over the next 30 years. To save for retirement, you will invest $800 per month in a stoc

Svetach [21]

Answer:

Ans. You withdraw each month from your account, for 300 months (25 years) $1,118.03 taking into account the expected inflation rate.

Explanation:

Hi, ok, first, we need to find out how much money will you have after saving in both accounts for 30 years, for that, we need to use the following equation and solve for FV (future value).

$FV=\frac{A((1+r)^{n}-1) }{r}$

Where, A is the amount saved in the account, r is the interest rate that it pays, n are the yearly equal payments, in our case 30. Everything should look like this in the case of the stock account.

$FV=\frac{800((1+0.11)^{30}-1) }{0.11} = 159,216.70$

In the case of the bond account it should look like this.

$FV=\frac{400((1+0.07)^{30}-1) }{0.07} = 37,784.31$

This means that after 30 years you will have $197,001.02

Now, we need to find the amount of monthly withdraw that you can make given the money saved, but in order to take into account the time value of money, we need to use the real rate of return and not the nominal rate of return (9%, when you gather all your money and send it to another acoount). Therefore, we have to find out the real rate of return, like this.

$Real(r)=\frac{[1+Nominal(r)]}{[1+Inflation(r)]} -1=\frac{(1+0.09)}{(1+0.04)} -1=0.0481$

This is 4.81% effective annual rate, but we need this rate to be effective monthly, that is:

$r(monthly)=(1+r(annual))^{\frac{1}{12} } -1=(1+0.0481)^{\frac{1}{12} } -1=0.0039$

That is 0.39% effective monthly, and we have to use the following equation with n=300 months, r=0.0039, PV= $197,001.02 and solve for A.

$PV=\frac{A((1+r)^{n} -1)}{r(1+r)^{n} } =\frac{A(2.234662443)}{0.012682296} =A(176.2032975)$

$197,001.02=A(176.2032975)$

$A=1,118.03$

Best of luck

7 0

3 years ago

In the above problem, the proposed new branch will _______ overall risk exposure and produce a(an) ______ effect. Fill in the ap

vfiekz [6]

Answer:

reduces; geographic diversification

Explanation:

In the above problem, the proposed new branch will economics reduces overall risk exposure and produce a geographic diversification effect.

7 0

3 years ago

Macro-economiscs college level .

Thepotemich [5.8K]

Answer/Explanation:

A. Increase in import WOULD NOT lead to a decrease in national income because it would lead to increase in revenue derived from import duties.

B. A decrease in interest (leakage) WOULD lead to decrease in national income because it will increase borrowing and reduces investment.

C. A decrease in money supply (money available in an economy) WOULD NOT lead to decrease in national income because it reduces inflational rate.

D. An increase in exchange rate WOULD lead to decrease in national income because it would encourage capital flight.

E. A decrease in foreign income WOULD lead to decrease in national income because it reduces revenue earnings.

3 0

3 years ago

John Hamilton narrowed $500.000 from stone creek bank to open a new restaurant called sauce it up. John transferred $450,000 of

Ksenya-84 [330]

Answer:

C) three reporting entities

Explanation:

A reporting entity is the same as an accounting entity, and it refers to a business or individual that must keep ts own accounting records. The entity must engage in separate activities and have separate obligations than other entities.

In this case:

the Stone Creek Bank is one entity that borrowed $500,000
John Hamilton is another entity because he borrowed money from the bank and is responsible for paying it back
Sauce It Up restaurant is another entity that was created by John Hamilton, and received $450,000

8 0

3 years ago