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Oduvanchick [21]
3 years ago
13

Joel is the sole shareholder of Manatee Corporation, a C corporation. Because Manatee’s sales have increased significantly over

the last several years, Joel has determined that the corporation needs a new distribution warehouse. Joel has asked your advice as to whether (1) Manatee should purchase the warehouse or (2) he should purchase the warehouse and lease it to Manatee. What relevant tax issues will you discuss with Joel?
Business
1 answer:
Zina [86]3 years ago
5 0

Answer:

If Joel purchases the warehouse, he can rent it to the corporation and charge the highest possible rent within reasonable terms. Joel can avoid double taxation and the corporation will be able to deduct rent expense.

Joel is also able to deduct depreciation expenses, real estate taxes, and other costs from his passive income.

As an individual, Joel is taxed differently for capital gains in case he sells the warehouse, and that rate is generally lower than corporate tax rates.

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On January 1, 2021, Bangle Company purchased 30% of the voting common stock of Sleat Corp. for $1,100,000. Any excess of cost ov
skad [1K]

Answer:

$1,058,000

Explanation:

Calculation to determine the balance in the investment account on December 31, 2021

Using this formula

December 31, 2021 Balance in the investment account=Voting common stock-Net loss-Dividends

Let plug in the formula

December 31, 2021 Balance in the investment account=$1,100,000 -(30%*$112,000)-(30%*$28,000)

December 31, 2021 Balance in the investment account=$1,100,000 - $33,600 - $8,400

December 31, 2021 Balance in the investment account=$1,058,000

Therefore the balance in the investment account on December 31, 2021 is $1,058,000

5 0
3 years ago
Fiscal policy refers to the idea that aggregate demand is affected by changes in Group of answer choices the money supply govern
Alik [6]

Answer:

All answers are correct except Money Supply

Explanation:

Fiscal policy affects aggregate demand through government spending and taxes. Government may increase taxes to increase revenue or discourage the consumption of a product. On the flipside, they may reduce taxes to stimulate spending, redistribute income, increase aggregate demand among other objectives.

Money supply is a monetary policy and it is used by the central bank to achieve certain objectives (reduce inflation, stimulate growth, increase demand, etc.)

Government spending is a fiscal policy that government uses to achieve a set of objectives (i.e. to supply goods and services that are not provided by the market or private sector – construct bridges, provide health facilities, social programmes for the poor among others).

Taxes – Tax is a fiscal policy tool used by the government to generate revenue, encourage or discourage the consumption of certain products or affect aggregate demand through income redistribution.  

Trade policy could be in the form taxes (i.e. tariffs, import duties, custom duties among others). Trade policy is a fiscal policy as government can use it to control aggregate demand by placing embargo on the importation of certain products to reduce the demand of such products in the local economy.

5 0
3 years ago
Being a good corporate citizen and contributing to the community are examples of __ responsibilities.
Talja [164]

Answer:

corporate social responsibilities        

Explanation:

Corporate Social Responsibility refers to the form of global self-regulation for private companies aimed at contributing to community objectives of an entrepreneurial, political, or humanitarian type or by participating in or promoting voluntary or ethically focused action.

Although before it was easy to explain CSR as an inner organizational practice or a business ethics technique, the period followed when different international legislation were established and different organizations used their power to move beyond person and even sector-wide programs.

Although it has long been known a type of organizational self-regulation, it has changed significantly over the past decades from voluntary actions at just the individual level companies to compulsory systems at local, domestic and international scale.

4 0
3 years ago
The zero-based budget is the best method of budgeting because:
Troyanec [42]

Answer:

The zero-based budget ensures that every dollar you make is assigned a specific purpose

Explanation:

Zero-based budge: It is also known as "zero-sum budget".

It refers to the process of creating a budget from nothing without using the previous year’s budget. It enables a firm allocate all its resources to expenses and debt payment.

Zero based budget ensures that every income made is allocated to a particular purpose without a remainder. The major goal of zero based budget is to ensure that revenue (income) less expenditure (spendings) is equal to zero.

That is, in zero based budgeting,

Income - expenditure= zero (0).

In other words,

income= expenses

5 0
3 years ago
Read 2 more answers
the Great Recession that began in 2007, the Fed lowered interest rates to almost 0%. What did it do to accomplish this policy
SIZIF [17.4K]

Explanation:

it makes it cheaper for banks to get money from the federal reserve

in return they can offer loans with less interest to customers such as those who buy homes

5 0
3 years ago
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