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Nadusha1986 [10]
2 years ago
11

Crane and Loon Corporations, two unrelated C corporations, have the following transactions for the current year: Click here to a

ccess the dividends received deduction table. Compute the dividends received deduction for Crane Corporation. $______________ Compute the dividends received deduction for Loon Corporation. $_______________
Business
1 answer:
Marta_Voda [28]2 years ago
3 0

Complete Question:

Crane and Loon Corporations, two unrelated calendar year C corporations, have the following transactions for the current year.

Crane,Loon

Gross Income: 180k, 300k

Expenses from operations: 100k, 230k

Div received: 100k, 230k

Compute the DRD for both companies

Solution:

DRD is a federal tax deduction for certain companies earning distributions from related entities in the United States. The amount of the dividend to be withheld from income tax by a corporation is related to how much it is owned in the business with the dividend.

Crane: 180k-255k+100k =25k-(100k*.5) = -25k so take 50k

Loon: 300k-310k+230k =220k-115.5k = 104.5+so good.

220.5k= 110k or 115k

Take lesser 110k

Crane DRD = 50k

Loon DRD = 110k

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Cloud [144]

Answer:

Considering the allocate fixed cost, it would not be a good option.

It will generate a financial disadvantage of 22,950

Explanation:

\left[\begin{array}{cccc}&produce&buy&Differential\\Purchase&&282,600&-282,600\\Variable Cost&270,000&&270,000\\Fixed Cost&68,400&32,850&-35,550\\Total Cost&338,400&315,450&-22,950\\\end{array}\right]

Fixed overhead; 38 x 1800 = 68,400

There is a portion of 35,550 fixed cost which is tracable to the real wheel assembly line thus, will be eliminated.

But 32,850 would not.

Considering this, it would not be a good option to stop the assembly line and purchase the component

7 0
2 years ago
Cindy's current year adjusted gross income (AGI) is $300,000 and her current year total tax liability is $60,000. Her immediate
Crazy boy [7]

Answer:

The answer is $44,000

Explanation:

Solution

Given that

Now

Present/current year AGI = $300000

Present /current year tax liability = $60000

Prior year AGI = $200000

Prior year tax liability = $40000

Thus

As per Tax rule or applying the Tax rule

If Adjusted gross income(AGI) of prior year is below $250000 then the minimum required tax payment in the current year in order to avoid interest penalty is lower of

(1) 90% of present /current year tax (liability) or

(2) 110% of prior year tax liability

So

Because the prior year AGI is $200000 which is lower than $250000, in order to avoid interest penalty, the minimum required payment amount of tax liability in current/present year is lower of

(1) 90% of current year tax liability of $60000

Then

$60000 *90% = $54000

Or

(2)110% of prior year tax liability of $40000

$40000 ×110% = $44000

Hence, minimum required total tax payment amount for the current year is $44,000

5 0
2 years ago
Production Processes Manufacturers use several different production processes to create goods and services. This activity is imp
iragen [17]

Answer:

Refining crude oil into gasoline requires the use of chemicals, pressure, and heat to change the chemical makeup of the crude oil into a finished product of gasoline. PROCESS MANUFACTURING: deals with formulas and manufacturing recipes.  

A production plant that serves as a point where workers and robotics bring together all of the components that create automobiles. ASSEMBLY PROCESS: manufactured units follow an assembly line.  

Making steel is a process that cannot be easily stopped and restarted. CONTINUOUS PROCESS: the manufacturing process cannot be easily stopped.  

Allen-Bradley builds motor starters. The machines that Allen-Bradley uses can make different types of starters without slowing down the process. FLEXIBLE MANUFACTURING: different models can be manufactured in the same process.

A tractor manufacturer looked at their production techniques and eliminated the activities in production that do not add value to the consumer. LEAN MANUFACTURING: very simple and lean manufacturing process.  

A bicycle company makes 18 models in more than 2 million combinations. The customer chooses the model, size, color, and design. MASS CUSTOMIZATION: high degree of product customization.

8 0
2 years ago
Five years ago, Weed Go Inc. earned $1.50 per share. Its earnings this year were $3.20. What was the growth rate in earnings per
podryga [215]

Answer:

Option C 16.36% is correct.

Explanation:

We can find the growth using the following growth formula:

g = (Earning per share today / Earning per share n years ago)^(1/5)  - 1

EPS of this year is $3.2 per share and 5 ago was $1.5 per share.

So by putting values we have:

g = (3.2 / 1.5) ^(1/5)  - 1  = 16.36%

The right option is C.

7 0
2 years ago
If the probability is 0.54 that Stock A will increase in value during the next month and the probability is 0.68 that Stock B wi
Natali5045456 [20]

Answer:

The probability that neither of both stocks increase  is 0,14

Explanation:

The Complement Rule states that the sum of the probabilities of an event and its complement must equal 1.

The data  we have is the probability that Stock A or B increase,  we are looking for the probability that neither occur,  so we have to use the complement of each one.  

Complement of Stock A =1-0.54=0.46

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If we want to know the probability of both events happening we have to multiply both complements.  

Probability that neither of these two events will occur= 0.46 x0.32= 0,1472‬

7 0
2 years ago
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