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Harlamova29_29 [7]
3 years ago
8

In 2019, Pine Corporation had losses of $20,000 from operations. It received $180,000 in dividends from a 25%-owned domestic cor

poration. Pine’s taxable income is $160,000 before the dividends-received deduction. What is the amount of Pine’s dividends-received deduction?
Business
1 answer:
zubka84 [21]3 years ago
7 0

Answer:

Consider the following calculations

Explanation:

Net income per books   $65,000

Add back:

Federal income taxes     9,700

Excess contributions       3,000

Life insurance premiums 10,000

$87,700

Subtract:

Tax-exempt interest       (1,500)

Excess depreciation       (4,500)

Taxable income                         $81,700

Dividend received deduction = 160000 x 80% = 128000 (full DRD doesn't create loss).

DRD will be 80% of taxable inome because percent partnership is 25% which is between 20 to 80%.

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Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred
Vlad [161]

Answer:

Period costs

Explanation:

Period costs are Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process. These cost are not related directly to the production process. These costs cannot be capitalized on the company's balance sheet. They are expensed in the period in which they were incurred and are included in the financial statement during their assigned accounting period.

5 0
3 years ago
Morrow Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory on May 1. Job X32Z was st
olga2289 [7]

Answer:

Cost of goods sold is $9,620

Explanation:

<em>First step prepare the Cost of Goods Manufactured Account</em>

Direct materials                               $ 9,100

Direct labor                                     $ 2,800

Manufacturing overhead applied  $ 4,800

Total Manufacturing Costs             $16,700

Add Opening Work In Process      $ 5,800

Less Closing Work In Process        $ 0

Cost of Goods Manufactured        $22,500

<em>Next we need to calculate the cost of goods sold as follows :</em>

Opening Finished Goods Inventory                $0

Add Cost of Goods Manufactured             $22,500

Less Closing Finished Goods Inventory    ($12,500)

Cost of goods sold                                       $10,000

Less Over-applied Overheads                         ($380)

Adjusted Cost of goods sold                        $9,620

Finished Goods Inventory = $22,500 × 100/180

                                           = $12,500

Thus Cost of goods sold is $9,620

4 0
3 years ago
Harrison owns a convertible bond with an 6% annual coupon and a $1,000 face value. It matures in 15 years and can be exchanged f
raketka [301]

Answer:

$953

Explanation:

According IFRS the equity and Liability portion of a bond should be recorded separately at the time of bond Issuance. The Liability portion can be calculated current value of the similar non convertible bonds and the difference between the Present value of cash flows and total proceeds from bond is the equity value.

Convertible Bond are value at the present value of their cash flows.

Use following formula to calculate the value of the bond.

Value of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Value of the Bond = ($1,000 x 6%) x [ ( 1 - ( 1 + 6.5% )^-15 ) / 6.5% ] + [ $1,000 / ( 1 + 6.5% )^15 ]

Value of the Bond = $952.99

3 0
3 years ago
The operating expense recorded from uncollectible receivables can be called all of the following except
beks73 [17]

Answer:

d .Accounts Receivable

Explanation:

Accounts receivables are amounts that a business expects to receive from its customers for goods and services sold on credit. In many instances, customers do not pay for deliveries immediately. In practice, a 30- 60 days credit period is allowed. Within this period, the customer is expected to make full payments for the goods.

In accounting, these expected payments are recorded as accounts receivables.

Should customers fail to make payments against account receivables, they convert to bad debts or uncollectable debts.

In summary, bad debts, uncollectable debts, and doubtful debts were initially accounts receivables. They changed status due to non-payments by customers.

6 0
3 years ago
An asset was purchased for $111,000 on January 1, Year 1 and originally estimated to have a useful life of 8 years with a residu
Anni [7]

Answer:

3rd year depreciation expense = $21156.25

Explanation:

Annual Depreciation [Dep pa]  = [Cost of Asset - Scrap Value] / Useful Years                                              

  • At beginning :  

Asset Cost = 111000 ; Scrap Value = 13500 ; Useful Years = 8

Dep pa = [111000 -13500] / 8

= 97500 / 8 → = 12187.5

Depreciation for 2 years :  Dep pa x 2 → = 12187.5  x 2 → =  24375

Remaining asset value at end of 2 years = Cost - total depreciation until now

= 111000 - 24375  → = 86625

  • At beginning of 3rd year :

Remaining Cost = 86625 ; Scrap Value = 2000 ; Useful Years = 4

Dep pa = [ 86625 - 2000]  / 4

= 84625 / 4  → = 21156.25

8 0
2 years ago
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