Which of the following measures how efficiently a company utilizes its operating assets?
A) Current ratio and quick ratio
B) Return on equity and earnings per share
C) Debt ratio and interest coverage ratio
D) Accounts Receivable turnover and inventory turnover
D) Accounts Receivable turnover and inventory turnover
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The Serenity Corporation distributes $200,000 in cash to its shareholders during 2019. Accumulated earnings and profits are $80,000 as of January 1, 2019. Current earnings and profits for 2019 are $84,000. Jonas, the sole shareholder of Serenity Corporation, has a basis of $48,000 in his stock. What is the tax effect of the distribution for Jonas?
A. Jonas will recognize ordinary income of $164,000 and a capital gain of $36,000. B. Jonas will recognize ordinary income of $84,000, capital gain of $80,000, and a tax-free recovery of capital of $36,000. C. Jonas will recognize ordinary income of $164,000 and a tax-free return of capital of $36,000. D. Jonas will recognize ordinary income of $164,000 and a capital loss of $12,000. E. Jonas will recognize ordinary income of $200,000 and a capital loss of $12,000.
Retained earnings generally consist of a company's cumulative net income less any net losses and dividends declared since its inception.
Answer the following statement true (T) or false (F)
Tommie, a six-year-old child, was seriously injured when he stuck a fork into an electrical outlet at a restaurant. His parents sued the restaurant where the incident occurred, claiming it should have had child protective guards on the outlets even though no law required the restaurant to do so. Whether the restaurant is liable will be dependent upon whether A) the incident was reasonably
foreseeable. B) the court views Tommie as a licensee or a trespassing child. C) this is negligence per se. D) this is an ultrahazardous activity.
Nicholas Sharp and Barry and Rhonda Downey own adjacent tracts of land in Howard County, Maryland. Their two adjacent lots were a single tract of land owned by Jack Ryan, Inc, the corporate alter ego of John E. Ryan. On February 20, 1996, Ryan divided the tract by deed, creating Lot 1 and Lot 2. Ryan then conveyed Lot 1 to Pamela Jekel. On the same date as the conveyance of Lot 1, Ryan and Jekel
executed an easement instrument which gave Ryan access to his Lot 2 over the existing Jeep trail located on Lot 1. Jack Ryan ended up married to Pamela Jekel and conveyed his lot to Nicholas Sharp. Pamela Jekel Ryan conveyed her lot to Barry and Rhonda Downey. ?What type of easement were they attempting to create? A) An express easement B) An easement by absolute necessity C) An implied easement