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
Answer:
<u>the supply curve</u>
Explanation:
Remember the supply curve shows the relationship between the amount of a commodity that a producer (or orange farmer) is <em>willing </em>to offer and at a particular price at any given time.
Because of the subsidies to orange farmers we expect the price of orange to become lesser in the future. Therefore the rightward shift occurs in supply curve for oranges due to favorable changes such as the new legislation which may lead to:
- Reduction in tax,
- Reduction in cost of factor of production,
- Expectation of fall in price in future,
Answer:
transferred out (COGM) 131,000
Cost of goods sold: 129,000
Explanation:
DM used 46,500
Direct labor 27,500
Overhead <u> 55,000 </u>
Total: 129,000 cost added for the period
Then, we calcualte the amount transferred-out:
Beginning WIP 14,000
Cost added 129,000
Ending WIP (12,000)
Trasferred out: 131,000 (cost of goods manufactured)
And finally, the cost of goods sold for the year:
Beginning FG 16,000
Trasferred out 131,000
Ending FG (18,000)
COGS: 129,000
The answer is (b) Greater,Rise ,toward
Explanation:
Refer to Exhibit 3-17. At a price of $16, the quantity demanded of good X is <u>Greater </u>than the quantity supplied of good X, and economists would use this information to predict that the price of good X would soon <u>Rise</u> .This would push the price <u>Toward</u> the equilibrium price
The law of Demand states that the price and the supply of the product are inversely related (i.e . ceteris Paribus).
Also an increase in the number of buyers of a particular product leads to a shift in the demand curve towards the right side
Answer:
The application of skill and knowledge with reasonable care and diligence
Explanation:
Competence is a part of Article IV- Due Care under the AICPA code of professional conduct. Competence is necessary to render the professional service without calling into question. It represents the application and maintenance of perceiving experience that supports a professional member to render a service with extreme knowledge, facility, and professionalism. Therefore, the answer choice B is the correct option.
