Lucy has been the sole shareholder of a calendar year S corporation since 1980. At the end of 2011, Lucy's stock basis is $23,500, and she receives a distribution of $25,000. Corporate level accounts are computed as follows.
AAA 7,000
PTI 11,000
Accumulated E&P 600
How much capital gain, if any, will Lucy have?
a. $600
b. $7,000
c. $6,400
d. $900
e. None of the above

Answers

Answer 1

Answer: d. $900

Explanation:

Capital gain = Total distribution - AAA as this isn't taxed - Accumulated E&P - PTI which isn't taxed either - Stock basis

Stock basis = Stock basis - AAA - PTI

= 23,500 - 7,000 - 11,000

= $5,500

Capital Gain = 25,000 - 7,000 - 600 - 11,000 - 5,500

= $900


Related Questions

Which of the following statements is not true of person-organization fit? Multiple Choice those who experience a higher fit have higher levels of job satisfaction employees who fit well have more trust in their managers the company can expect a committed worker when there is good person-organization fit a good fit means less stress about day-to-day tasks those with a good fit experience higher task performance than those without a good fit

Answers

The statement " those having a good fit experience have the higher task performance as compared to those who don't have a good fit" is correct.

The following information regarding the person-organization fit is:

It is a theory where the organization and the employee should be compatible with each other. In this, both parties should have the same attributes.

Due to the above reasons, the person-organization fit does not relate to the employee task performance.

Therefore all other options are not considered as all other options are relevant for the person-organization fit.

Thus, we can conclude that the statement " those having a good fit experience have the higher task performance as compared to those who don't have a good fit" is correct.

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Recessions in China and India would cause:________
a. the U.S. price level to fall and real GDP to rise.
b. the U.S. price level to rise and real GDP to fall.
c. the U.S. price level and real GDP to fall.
d. the U.S. price level and real GDP to rise.

Answers

Answer:

b. the U.S. price level to rise and real GDP to fall.

Explanation:

A recession can be regarded as macroeconomic term which is used to describe significant decline that occur in general economic activity within a designated region. It can be regarded as economic decline of two consecutive quarters which is been reflected by GDP along with some monthly indicators, this indicators could be a rise in unemployment.

For, instance Recessions in China and India would cause the U.S. price level to rise and real GDP to fall.

A stock has an expected return of 11.85 percent, its beta is 1.08, and the risk-free rate is 3.9 percent. What must the expected return on the market be

Answers

Answer:

11.26%

Explanation:

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

rm = expected return on the market

11.85 = 3.9 + 1.08(rm - 3.9)

11.85 - 3.9 =  1.08(rm - 3.9)

7.95 = 1.08(rm - 3.9)

7.95 / 1.08 = rm - 3.9

7.361 = rm - 3.9

rm = 11.26

A company's flexible budget for 12,000 units of production showed total contribution margin of $24,000 and fixed costs, $16,000. The operating income expected if the company produces and sells 15,000 units is:________
a) $34,000.
b) $10,000.
c) $18,667.
d) $8,000.
e) $14,000.

Answers

Answer:

e. $14,000

Explanation:

Operating income for 15,000 units = Proportionate contribution - Fixed cost

Operating income for 15,000 units = [($24,000/12,000)*15,000] - $16,000

Operating income for 15,000 units = $30,000 - $16,000

Operating income for 15,000 units = $14,000

So, the operating income expected if the company produces and sells 15,000 units is $14,000.

Sarah Wiggum would like to make a single​lump-sum investment and have ​$1.6 million at the time of her retirement in 32 years. She has found a mutual fund that expects to earn 4 percent annually.
How much must Sarah invest​ today?
If Sarah earned an annual return of 16 ​percent, how much must she invest​ today?
If Sarah can earn 4 percent annually for the next 32 ​years, how much will she have to invest​ today?

Answers

Answer and Explanation:

The computation is shown below:

When the rate of interest is 16% so the amount she invested now is

= $1,600,000 ÷ (1.16)^32

= $13,850

And, when the rate of interest is 4%, so the amount she invested now is

= $1,600,000 ÷ (1.04)^32

= $524,590

In this way it should be determined

__________ is a risk-based strategic assessment and planning technique used primarily for security but which also can be used for disaster recovery planning purposes.

Answers

Answer: Octave risk assessment

Explanation:

Operationally Critical Threat, Asset, and Vulnerability Evaluation (OCTAVE) risk assessment is is simply a self-directed approach whereby the employees in an organization take responsibility and set up the security strategy of the organization.

It's a risk-based strategic assessment and planning technique used primarily for security but which also can be used for disaster recovery planning purposes. In this case, with the knowledge of the employees, the team defines the state of security in the organization, identify the risks and then sets a security strategy.

Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $145,000 cash on December 1 of the current year by signing a 90-day, 9%, $145,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity.

Answers

Answer:

Keesha Co.

1. The date on which this note matures is February 28.

2. Interest expense for the current year is:

= $1,108

3. Interest expense for the following year is:

= $2,109

4. Journal Entries:

December 1:

Debit Cash $145,000

Credit Notes Payable $145,000

a) To record the issuance of the 90-day, 9% notes payable.

December 31:

Debit Interest Expense $1,108

Credit Interest Payable $1,108

b) To accrue interest expense.

February 28:

Debit Notes Payable $145,000

Debit Interest Payable $1,108

Debit Interest Expense $2,109

Credit Cash $148,217

To record the payment of the note at maturity.

Explanation:

a) Data and Calculations:

Notes Payable on December 1 = $145,000

Interest rate on the note = 9%

Duration of note = 90 days

December 1

Plus 90 days

= February 28

Interest expense for the current year = $1,108 ($145,000 * 9% * 31/365)

Interest expense for the following year = $2,109 ($145,000 * 9% * 59/365)

Analysis:

December 1:

Cash $145,000

Notes Payable $145,000

December 31:

Interest Expense $1,108

Interest Payable $1,108

February 28:

Notes Payable $145,000

Interest Payable $1,108

Interest Expense $2,109

Cash $148,217

Refer to Exhibit 16.6, which reflects the relationship between the inflation rate and the unemployment rate. If the economy started near point b and government purchases increased, we would expect the economy in the short run to move to _____

Answers

Answer: Point C

Explanation:

When government purchases increases, there will be more money in the economy which will have a multiplier effect in the economy of increasing investment and consumption spending both of which will lead to new companies being founded and old companies increasing capacity.

The unemployment rate will therefore decrease as more people are hired to boost capacity but the inflation rate will increase because of the rise in demand. The only point on the graph that shows these two things in point c so that is where the economy will move to in the short run.

Sales variance analysis is used by managers for: Select one: a. Planning purposes only. b. Budgeting purposes only. c. Control purposes only. d. Planning and control purposes. e. Planning and budgeting purposes.

Answers

Answer:

e. Planning and budgeting purposes.

Explanation:

Sales variance analysis is used by managers for planning and budgeting purposes, as this analysis allows managers to better understand the company's sales scenario in a given period in relation to different variables such as budgeted quantity, quantity sold and amount of profit made.

Through analysis, greater control and strategic planning and future budgets are possible so that an organization remains profitable and competitive in the market.

A property line conflict between neighbors Prakhash and Elliott escalated as the years went on. The police were called frequently to deal with loud arguments and acts of vandalism between the two until Officer Graves referred them to a community mediation center. In the two weeks since the mediation, the number of calls to police had dropped. Officer Graves contacted Martin, the mediator, and asked if she should consider the conflict resolved. Martin replied that the parties had agreed to meet again for another mediation session, but that the matter of the property line remained a point of tension.

Answers

The next day, Graves called the mediation center to tell Martin that Prakhash and Elliott had had a physical altercation, and both were charged with assault.

Which of the following best describes the status of the conflict now?

a) the conflict was resolved

b) the conflict is in the post-conflict stage

c) the conflict re-escalated

d) the conflict de-escalated

The answer to this question is that the conflict re-escalated

A conflict can be described as a very serious disagreement on ideas or interests that can linger on for a long period of time if not resolved.

Re-escalation means that the conflict started to get very serious again even after a mediator stepped in.

Because a mediator party had already stepped into the case and they were already trying to resolve issues, a physical altercation means that it re-escalated.

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HRH Collection Agency keeps a collection fee of 25% of any amounts collected. How much did the agency collect on a bad debt if the agency forwarded $2490 to a client?

Answers

Answer:

The agency collected $ 622.5.

Explanation:

Since HRH Collection Agency keeps a collection fee of 25% of any amounts collected, to determine how much did the agency collect on a bad debt if the agency forwarded $ 2490 to a client, the following calculation must be performed:

2490 x 0.25 = X

622.5 = X

Therefore, the agency collected $ 622.5.

A lower inflation rate will decrease the after-tax real interest rate when the government taxes nominal interest income.

a. True
b. False

Answers

False, SHOULD INCREASE after-tax real interest rates.

difference between price consumption curve and income consumption curve​

Answers

Answer:

Price-consumption curve is a graph that shows how a consumer's consumption choices change when price of one of the goods changes. Income-consumption curve is a similar graph which traces changes in demand in response to changes in income.

Cash Flow Activity 1. Sold stock investments for cash. 2. Received cash payments from customers. 3. Paid cash for wages and salaries. 4. Purchased inventories with cash. 5. Paid cash dividends. 6. Issued common stock for cash. 7. Received cash interest on a note. 8. Paid cash interest on outstanding notes. 9. Received cash from sale of land. 10. Paid cash for property taxes on building.

Answers

Answer:

Question is to classify each entry as either operating, investing, or financing activities assuming the indirect method.

Operating activities are those that involve the company's day to day activities of selling their goods and services.

Investing activities refer to those that involve the company buying or selling fixed assets or the securities of other companies.

Financing activities are those that have to do with Equity and long term debt which means that dividends fall here.

1. Sold stock investments for cash. ⇒ INVESTING

2. Received cash payments from customers. ⇒ OPERATING

3. Paid cash for wages and salaries. ⇒ OPERATING

4. Purchased inventories with cash.⇒ OPERATING

5. Paid cash dividends. FINANCING

6. Issued common stock for cash. ⇒ FINANCING

7. Received cash interest on a note. ⇒ OPERATING

8. Paid cash interest on outstanding notes. ⇒ OPERATING

9. Received cash from sale of land. ⇒ INVESTING

10. Paid cash for property taxes on building. ⇒ OPERATING

As more units of an item are purchased, everything else equal, marginal satisfaction from consuming additional units will tend to Select one: a. decrease at the same rate for all consumers. b. decrease but at different rates for different people. c. increase at the same rate for all consumers. d. increase but at a decreasing rate for all consumers.

Answers

Answer:

b

Explanation:

Marginal satisfaction is the additional satisfaction received from consuming an additional unit of a good or service. It is the change in total satisfaction by increasing the quantity consumed by one unit

Marginal satisfaction usually declines as more units of the products is consumed

An example illustrating diminishing marginal satisfaction.

Imagine a traveller arriving from the desert where he hadn't had a drink of water in days .he is offered his first glass of water. the first cup of water he drinks would give him the highest utility. As more and more cups of water is drank, marginal utility decreases. At the point where he is fully satisfied, he stops drinking water and marginal utility becomes zero.

the decrease in marginal satisfaction of this traveller would be slower than the decrease in marginal satisfaction of a person working in an air conditioned office with easy assess to water

Which one of the following is NOT included in the Marketing Mix?
Select one:
a. Promotion
b. Product
c. Distribution
d. Price
e. Personalization

Answers

C : Distribution is not included in the marketing mix

C . Or E. Distribution or personalization

Michael's Mattress Warehouse is planning to hire a new sales representative , so Sarak interviewing the sales manager to leam more about the skills, responsibilities, and behaviors associated with the positionAfter the interview, Sarah will observe one of the present sales representatives doing his job to get an even better idea of what the job involves Once she is done, she will use the informaation gathered to write a job description for the opes position Based on Sarah's actions , we can conclude that she is conducting a

compensation classification job analysis
employment comparison performance appraisal

Answers

From what Sarah is doing we can conclude that she is performing a job analysis.

Given that she is observing and trying to learn about requirements of this job.

When performing a job analysis, the analyst is trying to get relevant information about the details of a job as well as the requirements of the job.

Job analysis are carried out most of the time to determine job placements.

In conclusion We can see this from what Sarah is doing, she is observing and asking questions on what the job entails in order to write a description for the job.

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Two national companies both sell a variety of soaps and lotions. When looking at the balance sheets, one company lists goodwill as an asset, but the other company does not. What does this tell you about these companies

Answers

Answer: A. The first company purchased an entire business to expand the company, whereas the second company likely has not yet purchased another entire business.

Explanation:

Goodwill is the value over a company's net value that it is purchased for. For instance, if a company is worth $15,000 but was purchased for $20,000, $5,000 is the goodwill.

A company only expresses goodwill in its books when it has purchased another company for more than the company's value and when the balance sheets of the purchaser and the purchased were consolidated, the goodwill is therefore shown.

If the first company has goodwill as an asset then it means that it has purchased a company before unlike the second company which has not purchased any company as of yet.

Goodwill is referred to as intangible assets and is associated with the reputation of the firm. The goodwill depends on the gradual growth of the company at the variable stages. It is the purchase or acquisition of the assets at fair value and acquiring limited liabilities for the better growth of the company.

The correct option for the answer is A. The first company purchased an entire business to expand the company, whereas the second company likely has not yet purchased another entire business.

Options A. The first company purchased an entire business to expand the company, whereas the second company likely has not yet purchased another entire business is correct because the first company has made the decision to expand by owning it and getting some of the major investors from the market for the investment as well.  

Options:

B. The first company regularly donates to charitable causes, whereas the second company does not donate to charitable causes.

C. The first company purchased patents above market value to expand their product line, whereas the second company likely developed all of their patents in-house.

D. The first company added research and development costs as an intangible asset, whereas the second company expensed their research and development costs immediately

These options are wrong because they do not specify the correct meaning of the sentence in the context. They are verifying the other concept as compared to the context.

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Assume that Zonk is a potential leveraged buyout candidate. Assume that the buyer intends to put in place a capital structure that has 70 percent debt with a pretax borrowing cost of 14 percent and 30 percent common equity. Compute the weighted average cost of capital for Zonk based on the new capital structure.
A. 8.85%.
B. 12.56%.
C. 13.01%.
D. 9.94%.

Answers

Answer:

A.8.85%

Explanation:

Computation to determine the weighted average cost of capital for Zonk based on the new capital structure.

First step is to calculate the Cost of equity capital using this formula

Cost of equity capital = Risk free rate + (Beta*Market premium)

Let plug in the formula

Cost of equity capital = 2.3% + (1.13*5.3%)

Cost of equity capital=8.28%

Now let determine theWeighted average cost capital

Weighted average cost capital = [.70*.14*(1-.35)]+(.30*.0828)

Weighted average cost capital= [.70*.14*.65]+.02484

Weighted average cost capital=0.0637+.02484

Weighted average cost capital= .0885*100

Weighted average cost capital= 8.85%

Therefore the weighted average cost of capital for Zonk based on the new capital structure is 8.85%

application of the principle of comparative advantage leads to

Answers

Answer:

proper allocation of time and resources.

Explanation:

Fair and successful trade.

Emma's Electronics Incorporated has total assets of $56 and total debt of $43 million. The company also has operating profits of $27 million with interest expenses of $8 million.

Required:
a. What is Emma's debt ratio?
b. What is Emma's times interest earned?
c. Based on the information above, would you recommend to Emma's management that the firm is in a strong enough position to assume more debt and increase interest expense to $10 million?

Answers

Answer:

a. Debt Ratio = Debt / Total Assets

Debt Ratio = $43 million / $56 million

Debt Ratio = 0.76786

Debt Ratio = 76.79%

b. Time Interest Earned = EBIT / Interest

Time Interest Earned = $27 million / $8 million

Time Interest Earned = 3.375 times

c.  If Interest expense is increased to 10 lmillion. The new Time Interest Earned = $27 million / $10 million = 2.7 times. The new time Interest Earned is at 3 times and this indicate that the company can easily raise more debt for its funding needs.

MC Qu. 54 Maxim manufactures a hamster food product... Maxim manufactures a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $3.60 and total fixed costs are $10,000. The hamster food can be sold as it is for $8.95 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,200 cost. The additional processing will yield 10,000 bags of Premium Green and 3,200 bags of Green Deluxe, which can be sold for $7.95 and $5.95 per bag, respectively. The net advantage (incremental income) of processing Green Health further into Premium Green and Green Deluxe would be:

Answers

Answer:

Maxim

The net advantage (incremental income) of processing Green Health further into Premium Green and Green Deluxe would be:

= $6,840.

Explanation:

a) Data and Calculations:

Inventory of Green Health = 10,000 bags

Production costs per bag = $3.60

Total variable costs = $36,000 (10,000 * $3.60)

Total fixed costs = $10,000

Total production costs = $46,000 ($36,000 + $10,000)

Selling price before further processing = $8.95 per bag

Total revenue from selling 10,000 bags = $89,500 (10,000 * $8.95)

Additional processing cost = $2,200

Total revenue from selling 10,000 bags of Premium Green and 3,200 bags of Green Deluxe:

Premium Green (10,000 * $7.95) = $79,500

Green Deluxe (3,200 * $5,95) =        19,040

Total revenue =                               $98,540

Less additional processing costs      (2,200)

Net revenue from further processing $96,340

Net advantage of further processing = $6,840 ($96,340 - $89,500)

A price-cutting tactic may backfire if

Answers

Need answer choices

Name any two professional training needed in profession.

Answers

1. learner management system and environment.

2. implications for pedagogy and application to resource poor environment.

When a company receives payment from a customer whose account receivable was previously written off, the company a. reinstates the customer's account to the balance of both gross receivables and the allowance. b. records a decrease in bad debt expense. c. records an increase in net revenue. d. records a gain from unexpected collections.

Answers

Answer:  a. reinstates the customer's account to the balance of both gross receivables and the allowance.

Explanation:

When a company receives payment from a customer whose debt had been written off, the first step is to reinstate the account. This will be done by debiting the Accounts Receivable account and crediting the Allowance for doubtful debt accounts.

The accounts receivable account will then be credited to show that it is reducing. The cash account will be debited to show that cash was received from the customer.

What should Yelk set as the direct labor rate per hour?

Answers

Explanation:

30%

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b) Discuss the adjustment mechanism on real and good market in the economy from disequilibrium

Answers

Answer:

Disequilibrium refers to a situation in which demand does not equal supply. For example, the demand for a good might be 6, and the supply might be 10. The excess supply is 4. One possibility is that the excess supply causes the price of the good to fall, raising demand and reducing supply, and equilibrium results.

ls this your answer

A new trailer worth $10,000 is purchased and it's expected that the salvage value after 13 years will be $480. If the annual interest rate is 4.20% , what equation would be appropriate to use to determine the Expected Uniform Annual Cost (EUAC)

Answers

The equation that is used to determine the Expected Uniform Annual Cost is :

[tex]$A = P(A/P, i,n) - F(A/F, i,n)$[/tex]

It is given that :

Purchased price of a new trailer = $ 10,000

Number of years = 13 years

The salvage value after 13 years = $480

The rate of interest annually = 4.20%

The Estimated Uniform Annual Cost, that is the EUAC method is used to express the life cycle costs as the annualized estimate of the cash flow rather than a lumpsum estimate of the present value.

In other words, it is the annual cost of a system which is equal or equivalent to the discounted total cost.

So the equation that can be used to express the Expected Uniform Annual Cost in the given problem is :

[tex]$A = P(A/P, i,n) - F(A/F, i,n)$[/tex]

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An investment advisor has a client base composed of high net worth individuals. In her personal portfolio, the advisor has an investment in Torex, a company that has developed software to speed up internet browsing. She has thoroughly researched Torex and believes the company is financially strong yet currently significantly undervalued. According to the GARP Code of Conduct, the investment advisor may:

Answers

Answer: c. recommend Torex, but she must disclose her investment in Torex to the client.

Explanation:

The investment advisor is allowed to recommend Torex to her clients as she believes that it is financially sound and undervalued which means that there is a chance for her clients to earn a good enough return.

She must however disclose to them that she has an investment in the company so that they can decide on their own if this may have biased her decision towards the company as a viable investment option.

Del Monty will receive the following payments at the end of the next three years: $8,000, $11,000, and $13,000. Then from the end of the 4th year through the end of the 10th year, he will receive an annuity of $14,000 per year. At a discount rate of 12 percent, what is the present value of all three future benefits

Answers

Answer: $$70,643

Explanation:

The payment from the 4th year to the 10th year is an annuity because it is constant.

The present value of an annuity is:

= Annuity * Present value interest factor of annuity, 12%, 7 years

= 14,000 * 4.5638

= $63,893.20

Present value of these:

= 8,000 / 1.12 + 11,000 / 1.12² + 13,000/1.12³ + 63,893.20 / 1.12³

= $70,643

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Which statement is accurate regarding sexual activity?a.Peers do not have much influence on sexual activity.b.Dating an older person increases the chance of having sex.c.Other teens are having more sex than most teenagers perceive.d.Approximately 90 percent of teens have sex before age 16. 2(x-y)(x+y)+(x+y)*2+(x-y) Ursula has a new team member, Tom, who came from another worksite. Tom is constantly trying to make new suggestions and explain how things used to work his old job. How should Ursula respond? a) Avoid him as much as possible b) Nod her head but ignore the details c) Politely suggest that he stop making new suggestions d) Listen to his suggestions to see what might work Solve the equation for x.(x - 4) - (x + 7) = 8x11a.c.1182AlE NEb.1d.11coin84 What is planning of family? find the square root of 121/225 find the solution for -2.5x +5 < - 2.5 on a number line I need help finding the domain and range of y+9x=15 Which of the following expressions are equivalent Which best describes how enslaved people were regarded in the South in the pre-Civil War years?A. as equal to whitesB. as unskilled workersC. as valuable propertyD. as fellow humansE. as a nonrenewable resource Look at the image to receive the answers Nguyn nhn gy bnh qung g ngi l do:u Two high school basketball players each played 5 games. Their stats are summarized below:Player A: Stats on 5 games mean points scored = 25, standard deviation = 4Player B: Scored 23, 27, 28, 22, 25 points on 5 consecutive gamesSuppose a university basketball scout (a person who finds new players for a university's team) is deciding which player to recruit. Who should they choose? Justify your response. [3 marks]HINT: Compare mean and variance of each player. How many lbs. of mixed nuts that contain37% peanuts must Ashley add to 17 lbs. ofpeanuts to make a mixture with 88%peanuts? Solve for 2. Round to the nearest tenth, if necessary.BXA7.9154Answer: Due to the side-effects of industrialization, Roosevelt passed many conversation efforts, such as: HELP PLEASE !! find the surface area of the cylinder and round it to the nearest tenth. 106What is the length of the missing side? A plumber charges $65 for a diagnostic check. After the check, it is $85 per hour for the work. With $320 in your wallet, how many hours of Work can you afford? Question 4 of 40If cose= -5in quadrant II, what is sine?